Free Property Management Agreement Template

PROPERTY MANAGEMENT AGREEMENT

Appointment Of Managing Agent  ·  United Kingdom

This Property Management Agreement (this "Agreement") is entered into as of 2026-04-01 between Robert and Claire Jenkins of 12 Beaumont Gardens, Richmond TW9 2DL (the "Owner") and Pinnacle Lettings Ltd of Suite 4, Exchange Building, Edinburgh EH1 3DG (the "Agent"). The Owner appoints the Agent as managing agent in respect of a single residential dwelling and the Agent accepts that appointment on the terms set out below. This Agreement is made in compliance with all applicable UK legislation and recognised professional standards, including the RICS Service Charge Residential Management Code. The parties agree as follows:

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.

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.

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.

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.

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.

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).

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 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.

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.

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.

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.

The parties shall process personal data in accordance with the UK General Data Protection Regulation and the Data Protection Act 2018 (as amended by the Data (Use and Access) Act 2025). Each party is a separate controller in respect of its own processing except where a joint or processor relationship is expressly agreed in writing. Where applicable, the parties may rely on the new "recognised legitimate interests" lawful basis at Annex 1 paragraph 1 to the DPA 2018 (inserted by the DUA Act 2025) for low-risk SME processing. 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.

The Agent shall, in respect of any residential tenancy of the Property within the meaning of the Housing Act 1988 (as amended by the Renters' Rights Act 2024, Royal Assent 30 October 2024): (a) Tenancy regime conversion (1 May 2026 onward): ensure that all new tenancies are granted as assured periodic tenancies (s.21 Housing Act 1988 having been repealed), and that any existing assured shorthold tenancy is treated as converted on 1 May 2026; the Information Sheet required under Schedule 6 to the RRA 2024 shall be served on each Tenant by 31 May 2026; (b) PRS Database (in force late 2026): register the Owner and the Property on the Private Rented Sector Database under ss.50-58 RRA 2024 and maintain registration; (c) PRS Ombudsman (expected 2027): procure the Owner's membership of the Landlord Ombudsman scheme (ss.60-69 RRA 2024) and respond to any complaint determined by the Ombudsman; (d) Decent Homes Standard (expected 2035-2037): arrange inspections to confirm continuing compliance with the four DHS criteria (ss.80-84 RRA 2024) and notify the Owner of any non-compliance with reasonable remediation steps; (e) Awaab's Law (PRS extension): on receipt of any Tenant report of a "relevant hazard" (Social Housing (Regulation) Act 2023 s.42 + LTA 1985 ss.10A-10B), inspect within statutory timescales (typically 14 days for hazards, 24 hours for emergency hazards) and arrange remedial works within the statutory window; and (f) Pet requests (28-day statutory processing): on receipt of a Tenant pet-request, evaluate against ss.10-11 RRA 2024 and procure the Owner's response within 28 days, with refusal only on the statutory reasonable-grounds basis.

The Agent shall not, in marketing, advertising, tenant referencing or selection: (a) impose any blanket prohibition on tenants in receipt of housing benefit, Universal Credit (housing element) or other welfare benefits ("no DSS"); (b) impose any blanket prohibition on tenants with children; (c) impose any blanket prohibition on tenants who wish to keep pets (without considering each application individually under the statutory pet-request right at ss.10-11 RRA 2024). The Agent acknowledges that the above blanket bans are codified as prohibited under section 42 of the Renters' Rights Act 2024 (civil penalty up to £7,000 per breach) and may also amount to indirect sex / disability discrimination under sections 19 and 19A of the Equality Act 2010 (following Tyler v Paul Carr Estate Agents [2020] ET case-law). The Agent shall train its referencing staff in compliance with this clause.

Where the Agent uses AI or automated tenant-screening tools (including AI-assisted referencing, automated credit-scoring, generative-AI fraud detection or affordability modelling), the Agent shall: (a) ensure that no application is refused solely by automated processing with legal or similarly significant effects on the applicant, save where Article 22(2) UK GDPR permits and appropriate safeguards have been applied (Article 22 UK GDPR); (b) make the prospective Tenant aware of the AI / automated processing at the point of application and provide meaningful information about the logic involved (Articles 13(2)(f), 14(2)(g) and 15(1)(h) UK GDPR); (c) provide the right to human review of any automated refusal under Article 22(3) UK GDPR; (d) carry out a Data Protection Impact Assessment under Article 35 UK GDPR for any high-risk AI processing, and apply the ICO's 2024 guidance on AI and data protection; and (e) maintain an audit trail of AI-assisted referencing decisions for at least 12 months. The Agent shall indemnify the Owner against any claim arising from non-compliance with this clause.

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.

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.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.