Free Property Management Agreement Template

APPOINTMENT

The Owner hereby appoints the Agent as sole managing agent for the property located at 47 Lansdowne Crescent, Edinburgh EH12 5JR (the "Property"), with effect from 2026-04-01. The Agent confirms that it: (a) is a member of The Property Ombudsman (TPOS) as required by section 83 of the Enterprise and Regulatory Reform Act 2013 and the Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc.) (England) Order 2014; (b) belongs to RICS Client Money Protection Scheme in accordance with the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019; and (c) will comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, including customer due diligence on the Owner and tenants where required.

MANAGEMENT FEE

The Owner shall pay the Agent a management fee of 10% of rent collected, plus VAT at the prevailing rate. The fee shall be deducted by the Agent from rent collected or invoiced monthly in arrears. The Agent shall provide a written statement of account with each deduction in accordance with the RICS Service Charge Residential Management Code. Any charge to tenants shall not constitute a "prohibited payment" within the meaning of the Tenant Fees Act 2019. Where the Owner is a consumer, the fee is a "price" within the Consumer Rights Act 2015 and the parties acknowledge the requirements of transparency and fairness in Part 2 of that Act.

AGENT DUTIES

The Agent shall, with the reasonable care and skill expected of a professional managing agent and in accordance with the RICS Service Charge Residential Management Code: (a) market the Property and find suitable tenants in accordance with the Equality Act 2010 (no discrimination on protected grounds); (b) conduct tenant referencing, right-to-rent checks under the Immigration Act 2014 ss.20-23 (England), and anti-money laundering checks where required; (c) prepare, negotiate and execute tenancy agreements on behalf of the Owner; (d) protect any tenancy deposit in an authorised scheme and serve the prescribed information within 30 days (Housing Act 2004 ss.212-215); (e) collect rent and any service charges, providing transparent accounting; (f) arrange routine maintenance and repairs consistent with the Owner's statutory obligations under section 11 of the Landlord and Tenant Act 1985 and the Homes (Fitness for Human Habitation) Act 2018; (g) conduct periodic property inspections and report findings; (h) ensure compliance with the Gas Safety (Installation and Use) Regulations 1998, the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022, and the Energy Performance of Buildings (England and Wales) Regulations 2012 (minimum EPC rating E unless exempt); (i) handle the HHSRS risk profile under Part 1 of the Housing Act 2004 and liaise with the local authority as required; and (j) keep accurate books, records, accounts and invoices in relation to the Property for a minimum of six (6) years.

OWNER OBLIGATIONS

The Owner shall: (a) ensure the Property is in a lettable and safe condition at the commencement of any tenancy; (b) maintain adequate buildings insurance and public liability insurance for the duration of this Agreement; (c) provide the Agent with all certificates and documentation required to comply with statutory obligations (EPC, gas safety, electrical safety, legionella risk assessment, PAT reports where applicable); (d) obtain any HMO or selective licence required under Parts 2 and 3 of the Housing Act 2004, and pay any licence fee; (e) inform the Agent of any mortgage, superior lease or restrictive covenant affecting the letting of the Property; (f) respond promptly to requests for instruction where the matter is outside the Agent's delegated authority; and (g) hold the Agent harmless against any liability arising from the Owner's failure to comply with its statutory obligations.

CLIENT MONEY

Rent and deposits received by the Agent shall be held in a separate client account designated as such, segregated from the Agent's own funds, in accordance with the RICS Client Money Handling rules. Client money is protected by RICS Client Money Protection Scheme up to the limits of that scheme, as required by the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019. Interest earned on client money shall be dealt with in accordance with the Agent's published terms of business and applicable professional rules.

SPENDING AUTHORITY

The Agent is authorised to incur expenditure on routine maintenance and repairs without prior Owner approval up to GBP 250.00 per item or occurrence. Expenditure in excess of this limit shall require the prior written consent of the Owner, except in cases of emergency where immediate action is required to protect the Property or prevent risk to persons. Where the Property forms part of a leasehold block, the Agent shall comply with the consultation requirements of section 20 of the Landlord and Tenant Act 1985 and the Service Charges (Consultation Requirements) (England) Regulations 2003 for qualifying works (currently GBP 250 per leaseholder) and qualifying long-term agreements (currently GBP 100 per leaseholder per year).

TENANT FINDING

The Agent shall be responsible for finding, marketing, advertising, referencing and vetting tenants for the Property in accordance with the Equality Act 2010, Consumer Protection from Unfair Trading Regulations 2008 and the Agent's redress scheme code of practice. A tenant-find fee of 50% of first month's rent plus VAT shall be payable to the Agent on commencement of each new tenancy. The fee shall not be recovered from the tenant save to the extent permitted by the Tenant Fees Act 2019.

RENT COLLECTION, INSPECTIONS AND ACCOUNTING

Rent shall be collected by the Agent into a dedicated client account and remitted to the Owner after deduction of the management fee and authorised expenditure. The Agent shall conduct quarterly property inspections and shall provide the Owner with a written statement of account monthly, detailing all rent received, fees deducted and expenditure incurred. Annual service charge accounts (where applicable) shall be prepared in accordance with section 21 of the Landlord and Tenant Act 1985 and the RICS Code, and shall be provided to leaseholders on request.

INSURANCE

The Owner shall maintain adequate buildings insurance for the Property throughout the term of this Agreement at the full reinstatement value, and shall provide evidence of cover to the Agent on request. The Owner shall maintain adequate landlord public liability insurance throughout the term of this Agreement to cover the risks arising under the Occupiers' Liability Acts 1957 and 1984 and the Defective Premises Act 1972. The Agent shall also carry professional indemnity insurance with a limit of indemnity appropriate to its portfolio, as recommended by RICS.

TERM AND TERMINATION

This Agreement shall have an initial fixed term of 12 months from the commencement date, continuing thereafter on a rolling basis. Either party may terminate this Agreement by giving not less than two (2) months written notice to the other. The Owner may additionally terminate this Agreement immediately for serious breach by the Agent, fraud, gross negligence or loss of professional regulatory status. On termination, the Agent shall: (a) provide the Owner with a full account of all monies held, remitting any balance within 14 days; (b) hand over all keys, documents, tenancy records and certificates; and (c) co-operate in the transfer of management to the Owner or a successor agent, including re-assignment of deposit protection registrations. The Owner's statutory right to apply for the appointment of a manager under section 21 of the Landlord and Tenant Act 1987 (where applicable) is unaffected.

LIMITATION OF LIABILITY

The Agent's total liability to the Owner arising out of or in connection with this Agreement (whether in contract, tort, breach of statutory duty or otherwise) shall not exceed one times (1x) the total annual management fees paid in the 12 months immediately preceding the event giving rise to the claim. Nothing in this Agreement shall limit or exclude liability for: (a) fraud or fraudulent misrepresentation; (b) death or personal injury caused by negligence (Unfair Contract Terms Act 1977 s.2(1) and Consumer Rights Act 2015 s.65); (c) any liability that cannot lawfully be limited or excluded. Where the Owner is a consumer, the limitations in this clause are subject to the fairness test in Part 2 of the Consumer Rights Act 2015.

DATA PROTECTION AND EQUALITY

The parties shall process personal data in accordance with the UK General Data Protection Regulation and the Data Protection Act 2018. Each party is a separate controller in respect of its own processing except where a joint or processor relationship is expressly agreed in writing. The Agent shall not discriminate in the marketing or management of the Property on any ground protected by the Equality Act 2010 and shall comply with its public-facing duties under section 29 of that Act.

GOVERNING LAW AND JURISDICTION

This Agreement is governed by and construed in accordance with the law of England and Wales. The parties submit to the exclusive jurisdiction of the courts of England and Wales. Nothing in this clause prevents either party from referring a dispute to alternative dispute resolution, including mediation or the Agent's redress scheme.

GENERAL PROVISIONS

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. This Agreement constitutes the entire agreement between the parties and supersedes all prior representations or agreements. No variation shall be effective unless made in writing and signed by both parties. A person who is not a party to this Agreement has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce its terms.