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If you’re looking at getting into the property management business in 2025, it’s more critical than ever to ensure you have the right contract in place. Establishing clear terms not only protects your interests but also helps foster strong, long-term relationships with property owners.
Generally, you could call this a Service Agreement. This contract sets out the terms of your service in managing the property, covering everything from payment arrangements to limitations on liability. In today’s dynamic market, clearly defined agreements are essential to mitigate risks and avoid disputes.
However, if you’re managing Airbnb property, things can be a little more complicated.
This is because Airbnb’s platform already provides a set framework between hosts and guests, yet as the one managing the property, you still need your own protection. You want to ensure that your responsibilities, fees, and risk exposures are clearly outlined.
In this instance, you’ll need what we call an Airbnb Property Management Agreement. This updated contract, refined for the 2025 landscape, tackles the unique challenges of short‐term rental management.
What is this agreement? Why do you need it? And how can it protect your business?
This article will walk you through how to ensure your property management business is both legally sound and well-protected in this competitive market.
What Is An Airbnb Property Management Agreement?
Put simply, an Airbnb Property Management Agreement is a contract between you and the property owner. It clearly defines how you will manage the Airbnb bookings, including details on payment, the scope of your services, handling property damage, obtaining landlord approvals, and ensuring sufficient insurance coverage.
By outlining these terms, you specify exactly what is expected from both parties, reducing the potential for misunderstandings.
When starting your property management business, here are some key questions to ask yourself:
- How does your service work? What’s included – and, just as importantly, what isn’t?
- Do you offer cleaning services, or will you be outsourcing these tasks?
- What is your process if property damage occurs?
- Does the property comply with local regulations and is it allowed to be listed on Airbnb?
- Have you secured the appropriate insurance coverage?
Typically, Airbnb managers handle bookings, respond to guest enquiries, coordinate check-in procedures, manage cleaning schedules, and ensure that everything runs smoothly. In return, you would normally take an agreed percentage of the property owner’s booking fee.
But what if something goes wrong?
This is where having a robust contract in place makes all the difference.
Why Do I Need The Contract?
As a property manager, having a detailed contract between you and the property owner ensures that you’re both on the same page from the very beginning. It can save you a lot of headaches later on by making the terms of your service clear and enforceable.
Below are some critical elements to consider including in your Airbnb Property Management Agreement.
Scope of Service
It’s essential that the scope of your services and the limitations of your liability are clearly defined in your contract. Without this clarity, property owners might assume you’re providing more extensive services than you actually are. Setting things straight from the start prevents future disputes and miscommunications.
Property Damage
When you’re responsible for guest interactions, property owners might expect that you’ll cover any damage that occurs. However, you need to ensure that your liability for such damage is appropriately limited. Clearly outlining payment procedures and liability limits in your contract helps protect both parties.
These terms, when clearly set out, can avoid costly disputes and ensure you are properly reimbursed if damage occurs.
Termination
Clear ground rules around termination are vital. Without them, an owner could cancel your services abruptly, leaving you without a secure revenue stream. Specifying notice periods and any termination fees in your contract helps provide stability for your business in 2025’s fast-paced market.
Authority
Another key consideration is obtaining proper landlord permission. Airbnb managers must ensure that the property’s Lease Agreement explicitly permits short-term rentals, as many leases still restrict use on platforms like Airbnb. Failing to confirm this can expose you and the property owner to significant risks.
A quick check with the relevant landlord or a legal review of the lease terms can save you considerable trouble down the track. Our Contract Review and Redrafting service can assist in ensuring your agreements are watertight.
What Else Should I Consider?
Starting an Airbnb property management business is exciting, but you also need to make sure you’re legally protected. In addition to having an up-to-date management agreement, it’s important to stay informed about the latest legislative and industry developments in 2025.
For example, regulatory updates across various states have introduced clearer guidelines around short-term rentals, which means that your contract must reflect these changes. Depending on your business structure, you may also want to review our guide on Operating as a Sole Trader if you’re just starting out, or consider incorporating your business for greater protection. Protecting your branding is crucial too – learn more about Protecting Your IP with a Trade Mark so that your business name and logo are safeguarded from potential infringements.
Moreover, with the evolving market landscape, it’s wise to review your agreements periodically. Regular updates, assisted by professional legal advice, can ensure that your contracts remain in line with current best practices and statutory requirements. This proactive approach can set your business up for long-term success.
Need Help?
Having a good lawyer draft an Airbnb Property Management Agreement ensures that you’re protected as much as possible from these risks. It not only provides peace of mind but also supports your business growth in a rapidly changing market.
If you need help putting together a contract for your property management business, we’re here to assist! You can reach us on 1800 730 617 or team@sprintlaw.com.au. For further insights on updating your legal documents, check out our Getting Started With Your Legals guide.
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