Property Management Agreement template, ideal for property managers who intend to use this document to manage properties on behalf of owners.
THIS AGREEMENT is made the day of 2018
BETWEEN
[insert company owner name] (Company No: xxxxxx) a company incorporated in Malaysia and having its registered address at [insert address] and having its business address at [insert address] (hereinafter referred to as “Owner”).
AND
[insert company operator name] (Company No. xxxxx) a company duly registered in Malaysia under Companies Act 2016 with its registered address at [insert address] (hereinafter referred to as “the Operator”)
WHEREAS
- a) The Operator has been appointed by Owner to market, promote, manage, rent and operate the said Units as defined below in the Project known as [description of property] held under Master Title(s) [insert land titles & land description] measuring approximately [insert size] square metres in area (hereinafter referred to as “the said Project”).
- b) Nusmetro and the Operator are desirous of entering into this Agreement for the purposes of appointing the Operator to market, promote, manage, rent and operate units of apartments which to be allocated by Nusmetro and which more details will be provided for in Appendix A with fixtures, fittings, furniture and electrical appliances (hereinafter referred to as “the said Units”) upon the terms and conditions stated herein.
- c) The said Units which will be delivered by Nusmetro to the Operator shall consist of the following type (where applicable) and the minimum listing pricing to comply below:-
| Type of the said Units | Minimum listing price on Online Travel agents |
| One (1) bedroom unit | RM xxx per night |
| Two (2) bedrooms unit | RM xxx per night |
| Three (3) bedrooms unit | RM xxx per night |
| Four(4) Bedroom Units | RM xxx per night |
WHEREBY IT IS AGREED as follows:
- In consideration of Owner appointing the Operator to manage the said Units in the Project in accordance to the terms and conditions herein. The day the units are being handled over shall hereinafter be referred to as “the Commencement Date”.
- Owner shall entitles at any time after the Commencement Date of this Agreement deliver more of the said Units to the Operator for marketing and promotion or withdraw the said Units from the Operator’s marketing and promotion by giving a fourteen (14) days’ written notice to the Operator.
- The parties hereby authorize the Operator to receive all monies from the occupier(s) of the said Units and thereafter shall be dealt in accordance to the manner set below:-
2.1 firstly, to deduct the Allowable Deduction listed below by submitting all relevant bills/tax invoices/receipts:-
- commission chargeable by travel agent or online agent;
- administrative charges imposed by bank or financial institution;
- electricity charges;
- water charges;
- sewerage charges;
- telecommunication or wireless networking charges(units only);
- premium for any other additional insurance of the Units in the Project which was purchased by the Landlord and was required for the purposes of this Agreement;
- cost of purchase of wireless networking equipment and installation charges thereof which to be amortized in thirty six (36) months;
- cost of repair or replacing the electrical appliances in the Units but limited to television, water heater, washing machine, kitchen stove, air condition and fridge only; and
- purchase of a unit each of ironing board and hair dryer for each and every of the said Unit
(hereinafter referred to as “the Allowable Deduction”)
2.2 any balance thereof shall be shared by the parties in the following manner and proportion:-
| *Achievement of Target Net Revenue (after deducting commission) per month | **Target Net Revenue after deducting commission based on the total number of the said Units delivered. | Nusmetro’s portion | Operator’s portion |
| Below 40%
|
(a) One (1) bedroom unit for RM160.00 per night
(b) Two (2) bedrooms unit for RM xxx per night (c) Three/four(3 or 4) bedrooms unit for RM350.00 per night
|
80% x (total money receivable per month less Allowable Deduction)
|
20% x (total money receivable per month less Allowable Deduction) |
| 40% to 49.99% | (a) One (1) bedroom unit for RM xxx per night
(b) Two (2) bedrooms unit for RM xxx per night (c) Three/four(3 or 4) bedrooms unit for RM xxx per night
|
75% x (total money receivable per month less Allowable Deduction) | 25% x (total money receivable per month less Allowable Deduction)
|
| 50% to 69.99%
|
(a) One (1) bedroom unit for RM xxx per night
(b) Two (2) bedrooms unit for RM xxx per night (c) Three/four (3 or 4) bedrooms unit for RM xxx per night
|
70% x (total money receivable per month less Allowable Deduction) | 30% x (total money receivable per month less Allowable Deduction) |
| Above 70%
|
(d) One (1) bedroom unit for RM xxx per night
(e) Two (2) bedrooms unit for RM xxx per night (f) Three/four (3 or 4) bedrooms unit for RM xxx per night
|
65% x (total money receivable per month less Allowable Deduction) | 35% x (total money receivable per month less Allowable Deduction) |
*The Achievement of Target Net Revenue will be calculated every month based on the formula below:-
Achievement of Target Net Revenue = Revenue received(less Commission) divided by Target Net Revenue x 100
Example:
Assumption 1: Owner has delivered to the Operator 2 units of One (1) bedroom unit, 15 units of Two (2) bedrooms unit and 13 units of Three (3) bedrooms unit.
Assumption 2: The Operator has received revenue of RM5, 000.00 per day from letting out the said Units.
| Target Net Revenue per day =
= = |
[2 x RM160.00] + [15 x RM250.00] + [13 x RM350.00]
RM320.00 + RM3,750.00 + RM4,550.00 RM8,620.00
|
| Achievement of Target Net Revenue =
= |
RM5,000.00 / RM8,620.00 x 100
58.00% |
As summary, the Profit Sharing Scheme for Nusmetro and the Operator shall be at the rate of 70%: 30% respectively if the Achievement of Target Net Revenue is 58.00% computed on a calender monthly basis ( for simplicity the example above is on a day basis only)
**The Target Net Revenue will be reviewed (where applicable) after twelve (12) months from the Commencement Date.
For avoidance of doubt, the above Target Net Revenue shall be deemed to be excluding of goods and service tax, sale and services tax or any other similar tax imposed by the Authorities.
- During the grace period and prior to the Commencement Date, the Operator shall pay Nusmetro of their portion of the profit sharing in accordance to the calculation provided in Profit Sharing Scheme on the 15th day of every succeeding month from the date of this Agreement.
- In the event that the Operator shall default in the payment of the Monthly Guaranteed Payment stipulated in this Agreement, Nusmetro shall issue a notice in writing to the Operator demanding them to make good such payment within fourteen (14) days failing which Nusmetro shall at their sole discretion to terminate this Agreement with immediate effect.
- Either party shall have the discretion to terminate this Agreement in the event that the said Units become inoperable by the operation of law of Malaysia.
- Owner hereby represents, warrant and undertake as follows:-
- to fully furnish the said Units with fixtures fittings furniture and electrical appliances of a quality which are fit for the purpose of operating the said Units as service units;
- to install energy saving system for the said Units; and
- to install and provide broadband and Wi-Fi facilities for the said Units.
- The Operator hereby represents, warrant and undertake as follows:-
- to market, promote, manage, rent and operate the said Units in the Project diligently;
- to replace any lost items such as towels bath robes electrical appliances in the said Units at it’s own costs and expense;
- to pay for any other cost and expenses in marketing, promoting, managing, renting and operating the said Units in the Project;
- to use the said Units for the Permitted Usage only and shall not under any circumstances use the Premises for any other purposes whatsoever;
- not to do or permit or suffer to be done on the said Units anything which may be a nuisance or annoyance to or in any way interfere with the quiet enjoyment and comfort of neighbouring residents/occupiers;
- not to do or permit or suffer to be done any illegal or immoral acts or any acts which may infringe or violate any laws or regulations;
- not to store or bring arms, ammunition, any unlawful goods, gun-powder, saltpetre or any other combustible materials into any part of the said Units;
- to keep the interior of the said Units including the flooring and interior plaster or other surface material on walls and ceiling, all windows, glass shutters, locks, fastenings, keys, bells, electrical wiring and Nusmetro’s fixtures and fittings and electrical appliances in the said Units in good, tenantable and sanitary condition throughout the validity of this Agreement;
- to indemnify Owner against all losses, damages, costs and expenses whatsoever incurred by Owner due to any breach of the Operator’s covenants herein or under any laws, rules, regulations, by-laws or orders by the Operator including but not limited to, any claims against Owner arising from occupiers’ liability save where such losses, damages, costs and expenses were caused by Owner;
- to repair such part of the said Units which may be damaged by the Operator or its agent, servant, visitor or licensee forthwith to the satisfaction of the Landlord [fair wear and tear excepted];
- to peaceably and quietly deliver-up possession of the said Units to Nusmetro in good tenantable repair (fair wear and tear excepted); and
- to obtain and maintain at all times and at the Operator’s own costs and expenses, all relevant licenses, permits, approvals and other consents necessary for the conduct of the Permitted Usage.
- The Operator and Nusmetro hereby acknowledges that they are entering into and executing this Agreement in reliance upon the other party’s representations and warranties and undertakings as set out in Clause 11 and12 hereto and the truth and correctness of the matters stated in the representations and warranties shall form the basis of the parties’ commitment, obligation and due performance in accordance with the provisions of this Agreement.
- If any such representations and warranties shall at any time hereafter be found to have been untrue incorrect or inaccurate in any material respect or the party shall fail to make full disclosure to the other party of any material particulars, then and in such event and notwithstanding anything to the contrary herein contained and without prejudice to any of the rights and remedies of the Purchaser herein contained or under general law, the non-defaulting party shall have the right to terminate this Agreement by a three (3) month’s notice in writing to the default party to terminate this Agreement.
- Upon the execution hereof, the Operator hereby undertakes that they shall not for the duration of this Agreement, enter into another agreement with the similar nature and character with any other third party in respect of the said Project until and unless the written consent from Nusmetro has been first obtained.
- Each party shall pay their respective solicitors’ costs for all the matters referred to herein and the Operator shall bear all stamp duties for this Agreement.
- Each party shall bear its own taxes as shall have been incurred pursuant to this Agreement.
- This Agreement shall be read and construed accordingly to and shall be governed by the laws of Malaysia.
- Time wherever mentioned in this Agreement shall be of the essence.
- Any notice request or demand required to be served by any party hereto under the provisions of this Agreement shall be in writing and be deemed to be sufficiently served if delivered by hand or sent by registered post or facsimile at the following addresses for service:-
(a) NUSMETRO AMPANG SDN BHD (Company No: 973439-A)
(b) HOTEL HEROES SDN BHD (Company No. 1282549-A)
and any notice so sent by registered post shall be deemed to have been received by facsimile shall be deemed to have been served on the same day if the same is working day, and, if not, on the next working day.
- If at any time any provision hereof contained hereof is or becomes illegal, invalid or unenforceable in any aspect, the remaining provisions hereof shall in no way be affected or impaired thereby.
- If at any time during the continuance of this Agreement, the Said Units or any part thereof shall be destroyed or damaged by fire, land slide, lighting, riot or civil commotion or flood, storm, tempest or other unforeseen cause so as to become unfit for occupation and/or use, then the Operator’s obligation will stop once the said units become unfit for occupation until the said Units become fit for occupation.
- This Agreement shall be binding on the successor in title, personal representatives and assigns of each of the signatories hereto.
—-the End—-
IN WITNESS WHEREOF the parties hereto have hereunder set their hands the day and year first above written.
SIGNED BY )
[company owner name] )
(Company No: xxxxx) )
in the presence of: – )
…………….…………………………………
Director
Name:
NRIC No.
SIGNED BY )
[Insert operator company name] )
(Company No.xxxxx ) )
in the presence of: – )
………………..……………………………….…
Director
Name:
NRIC No.
Appendix A
| [insert property description] | ||||
| 1 BEDROOM | 2 BEDROOM | 3 BEDROOM | ||
| DECORATIVE ITEMS | ||||
| 1 | Coaster | 1 SET | 1 SET | 1 SET |
| 2 | Shower Shelves | 1/BATHROOM | 1/BATHROOM | 1/BATHROOM |
| 3 | Towel Rail | 1/BATHROOM | 1/BATHROOM | 1/BATHROOM |
| 4 | Glasses | 1 SET | 1 SET | 1 SET |
| 5 | 24 Pieces Cutlery Set | 1 SET | 1 SET | 1 SET |
| 6 | Mugs | 1 SET | 1 SET | 1 SET |
| 7 | Vases | 1 SET | 1 SET | 1 SET |
| 8 | Vases | 1 SET | 1 SET | 1 SET |
| 9 | Vases | 1 SET | 1 SET | 1 SET |
| 10 | Vases | 1 SET | 1 SET | 1 SET |
| 11 | Leaf with Vase | 1 SET | 1 SET | 1 SET |
| 12 | Cups | 1 SET | 1 SET | 1 SET |
| 13 | Place Mat | 1 SET | 1 SET | 1 SET |
| 14 | Cutlery Tray | 1 SET | 1 SET | 1 SET |
| 15 | Kitchen Utensil (4 in set) | 1 SET | 1 SET | 1 SET |
| 16 | Pot Stand | 1 SET | 1 SET | 1 SET |
| 17 | Pot Stand | 1 SET | 1 SET | 1 SET |
| 18 | Pedal Bin | 1 SET | 1 SET | 1 SET |
| 19 | Cushions | 1 SET | 1 SET | 1 SET |
| 20 | Sofa Throw | 1 SET | 1 SET | 1 SET |
| 21 | Plate Set (4 pax) | 1 SET | 1 SET | 1 SET |
| 22 | Photo Frame | 1 SET | 1 SET | 1 SET |
| 23 | LED Candle | 1 SET | 1 SET | 1 SET |
| 24 | Wall Clock | 1 SET | 1 SET | 1 SET |
| 25 | Pillows | 2PCS/BEDROOM | 2PCS/BEDROOM | 2PCS/BEDROOM |
| 26 | Fitted Bedsheet – Queen | 2 PCS | 4 PCS | 4 PCS |
| 27 | Fitted Bedsheet – Single | X | 4 PCS | 4 PCS |
| 28 | Duvet Cover- Queen | 1 PCS | 1 PCS | 1 PCS |
| 29 | Duvet Cover – Single | X | 2 PCS | 2 PCS |
| 30 | Duvet Inset – Queen | 1 PCS | 2 PCS | 2 PCS |
| 31 | Duvet Inset – Single | X | 2 PCS | 2 PCS |
| 32 | Bath Towel | 2/BEDROOM | 2/BEDROOM | 2/BEDROOM |
| 33 | Bath Mat | 1PCS/TOILET | 1 PCS/TOILET | 1PCS/TOILET |
| 1 BEDROOM | 2 BEDROOM | 3 BEDROOM | ||
| ELECTRICAL APPLIANCES | ||||
| 1 | 45″ HD LED TV w/ USB | YES | YES | YES |
| 2 | MICROWAVE OVEN | YES | YES | YES |
| 3 | ELECTRIC JUG KETTLE | YES | YES | YES |
| 4 | SINGLE DOOR REFRIGERATOR | YES | YES | YES |
| 5 | TABLE TOP INDUCTION HOB | YES | YES | YES |
| 6 | 7+5 KG FRONT LOAD WASHER DRYER | YES | YES | YES |
| 7 | 1.3L RISE COOKER | YES | YES | YES |
| 8 | HAIRDRYER | YES | YES | YES |
| LOOSE FURNITURE | ||||
| 1 | SOFA | YES | YES | YES |
| 2 | COFFEE TABLE | YES | YES | YES |
| 3 | SIDE TABLE | YES | YES | YES |
| 4 | LIVING CARPET | YES | YES | YES |
| 5 | STAND LAMP | YES | YES | YES |
| 6 | DINING TABLE | YES | YES | YES |
| 7 | DINING CHAIR/COUNTER STOOL | YES | YES | YES |
| 8 | BEDSIDE TABLE | YES | YES | YES |
| 9 | DRESSING STOOL | YES | YES | YES |
| 10 | TABLE LAMP | YES | YES | YES |
| 11 | ROUND MIRROR | YES | YES | YES |
| BUILT IN FURNITURE | ||||
| 1 | TV CABINET | YES | YES | YES |
| 2 | TOP HUNG CABINET | YES | YES | YES |
| 3 | HEADBOARD | YES | YES | YES |
| 4 | DRESSING TABLE | YES | YES | YES |
| 5 | WARDROBE | YES | YES | YES |
| 6 | KITCHEN TOP HUNG | YES | YES | YES |
