Managing An Airbnb Property? Here’s How To Keep Yourself Protected

If you’re looking at getting into the property management business in New Zealand, it’s crucial to ensure you have the appropriate contract in place.

Typically, this would be referred to as a Service Agreement. This contract outlines the terms of your service in managing the property, addressing everything from payment to limitations of liability.

However, managing an Airbnb property can be somewhat more complex.

This complexity arises because Airbnb’s terms and conditions already establish a contract between hosts and guests, and as the property manager, you need to ensure that your interests are also safeguarded.

In this instance, you would require what is known as an Airbnb Property Management Agreement.

What is this agreement? Why is it necessary? And how can it protect your business in New Zealand?

This article will guide you through the process of getting it right.

What Is An Airbnb Property Management Agreement?

An Airbnb Property Management Agreement is a legally binding contract between you and the property owner in New Zealand.

The document will detail the terms under which you’ll manage the Airbnb bookings — such as payment, scope of service, property damage, landlord approvals, and insurance coverage.

When starting your property management business, consider the following:

• How does your service operate? What is included and what is not?
• Do you provide cleaning services?
• What is the protocol if something is damaged?
• Is the property legally permitted to be listed on Airbnb?
• Do you have the necessary insurance?

Typically, Airbnb managers in New Zealand will handle bookings, communicate with guests, assist with check-in procedures, manage cleaning, and ensure smooth operations.

In exchange, you would usually receive a predetermined percentage of the property owner’s booking fee.

But what if something goes awry?

This is where a well-drafted contract becomes invaluable.

Why Do I Need The Contract?

As a property manager, a contract between you and the property owner ensures clarity and mutual understanding. It can prevent future disputes by setting out the terms of your service from the outset.

Here are some critical elements to include in your Airbnb Property Management Agreement in New Zealand.

Scope of Service

It’s essential to clearly define the scope of your services and the extent of your liability in the contract.

Property owners may have assumptions about your service that go beyond what you’ve promised if it’s not explicitly stated in writing. It’s best to clarify these details upfront!

Property Damage

As the intermediary dealing with guests, the owner might expect you to take responsibility for any damage they cause. Clearly, this is not ideal for you.

Therefore, it’s crucial to have these terms explicitly outlined in the contract.

This clarity prevents misunderstandings and ensures that you are properly compensated in the event of property damage.

Termination

Clear termination clauses are vital for securing your revenue streams. Without them, a property owner could end your services without notice, potentially leaving you without a key client.

Authority

One common issue for Airbnb property management businesses is ensuring they have the landlord’s permission.

It’s not uncommon for Airbnb hosts to list their properties without the necessary permissions in their lease agreements. This can pose significant risks for property managers.

As a property manager, you must verify that the property is legally permitted to be listed on Airbnb. Consulting with a knowledgeable lawyer can help you mitigate these risks.

Need Help?

Having a competent lawyer draft your Airbnb Property Management Agreement is crucial to ensure you’re adequately protected from potential risks in New Zealand.

If you need assistance drafting a contract for your property management business, we’re here to help! You can reach us on 0800 002 184 or [email protected].

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