Whether you are seeking someone to manage your property as a short-term rental, or you manage vacation rentals or serviced apartments on behalf of property owners, having a proper and detailed property management contract is necessary. Even if the partnership originates from a friendship bond, a co-hosting agreement is beneficial, ensuring all parties are well-prepared for potential challenges. A sample co-hosting contract can always be helpful, particularly if you are new to the short-term rental industry.
Zeevou is operated by seasoned property managers who bring extensive expertise in the management of serviced apartments. This hands-on experience equips us to understand the intricacies of co-hosting contracts. As a result, we have curated a sample property management contract, available at the end of this post. However, we recommend reading the following sections beforehand to gain a more comprehensive understanding of property management agreements.
Table of Contents
What Is a Property Management Contract?
A Property Management Contract elucidates the binding responsibilities between the landlord and the management company, outlining the duration of their commitment. Similarly, a co-hosting contract between the property owner and the property management agency establishes a programme for task assignments and duration. It should encompass key elements such as the scope of work, responsibilities, flexibility, amendment conditions, fees, and the timeframe during which the contract holds significance and is applicable.
Why Should You Consider a Co-hosting Contract?
A well-crafted co-hosting contract, as well as a property management agreement, lays out the specific responsibilities for both parties. For example, it establishes the reasons for partnership termination and outlines a notice period for agreement termination. Additionally, such an agreement defines fees related to terminating the agreement before its intended conclusion. By covering these details, the agreement helps minimise conflicts by clearly assigning liabilities. Moreover, if either party falls short of fulfilling their duties, the law steps in to safeguard the rights of the respective parties.
What Must a Co-hosting Contract Include?
For a precise and well-crafted property management or co-hosting contract, make sure to include the following items/articles:
- Ownership Details: Clearly specify ownership, especially when multiple owners are involved, and designate a primary contact person.
- Service Scope: Define the property management company’s responsibilities, including rights to rent, marketing, and booking-related tasks.
- Liability and Negligence: Determine liability for damages, associated legal costs, and establish responsibility for negligence of third parties hired.
- Indemnity: Address indemnity clauses related to property loss or damage.
- Property Condition: Assess and document the current condition of the property, including ongoing maintenance concerns, and establish approval processes for repairs.
- Utilities and Bills: Clarify responsibility for paying utilities and services.
- Rent Allocation: Define the portion of rent allocated to the property owner and identify any additional costs deducted from the rent.
- Contract Duration and Termination: Specify the contract’s duration, terms for termination, notice periods, responsibilities during termination, and any associated fees.
- Property Sale: Outline procedures if the property owner decides to sell the property during the contract period.
- Safety Standards: Ensure compliance with national safety regulations and standards, including screening tenants in accordance with state, federal, and local laws.
- Insurance Obligations: Define obligations and responsibilities for property insurance, considering whether the property management company should be included under insurance coverage.
- Access to Guests Details: Define the parties with authorised access to guest information, clarify guest placement responsibilities held by the property owner, and establish explicit procedures for managing client payments and any supplementary income from additional services.
- Management Fee Structure: Clearly state the management fee structure, specifying whether it is a flat monthly fee or a percentage of total rental income, and detail other fees payable by property owners.
- Deposit Handling: Determine the handling of guest deposits, whether they go to the owner or into a manager’s trust account.
Sample Co-Hosting Contract
Zeevou has compiled a detailed and comprehensive sample co-hosting contract. It includes all the aspects mentioned above in greater detail. Please note that legal requirements may vary from jurisdiction to jurisdiction. This document is intended to provide you with an idea of the points you may wish to cover. You should seek independent legal advice for any documents you adopt in your business to ensure you are fully protected. Zeevou accepts no liability arising as a result of your use of any part of this document. To download the sample co-hosting contract for free, click here.