Property management and real estate administration agreement

The agreement must state whether the manager represents the owner, signs contracts, orders works, collects money, issues notices or merely carries out instructions. Financial thresholds and decisions reserved to the owner reduce bottlenecks.

Managing a private portfolio is not the same as administering a condominium through the owners’ association. For condominiums, Law No. 196/2018 lays down rules on the administrator’s appointment, qualifications, contract and duties.

• tenant relations and rent collection;
• preventive maintenance and interventions;
• supplier procurement and monitoring;
• insurance and incident management;
• technical, financial and legal reporting.

The accounts used, supporting documents, reporting schedule and reconciliation of amounts must be established. The manager’s fees, supplier mark-ups and benefits received from third parties must be handled transparently.

Urgent expenditure may be subject to an expedited procedure, but with a cap, notification and subsequent justification. For planned works, requirements for comparable quotations and documented approvals are useful.

The manager needs approved templates for notices, access, interventions and complaints. Tenant data, identity documents and payment information must be accessed only for defined purposes, with security measures in place.

Supplier contracts must be kept in a register recording deadlines, warranties, SLAs and termination conditions. The owner must be able to take over operations without depending on the manager’s accounts or passwords.

The professional standard, insurance, liability limits and exclusions must reflect the manager’s actual control. Fraud, gross negligence, unauthorised use of money and breaches of confidentiality should not be hidden within a general limitation clause.

The exit plan includes handing over keys, contracts, balances, security deposits, data, intervention history and digital access. The transition must continue long enough to avoid interrupting essential services.