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Property Management / Vendor Contracts

Property management vendors.
Licensed, insured, and contracted.

Uninsured contractors. Authorisation thresholds not specified. After-hours rates that weren't agreed. Kontractually reviews property management vendor contracts against your standard playbook before engagement.

No credit card required. First 3 reviews free.

Before vs. after

What changes when vendor contracts are reviewed before engagement.

Before

A plumber completes emergency after-hours work on a rental property. The invoice is $2,800 - triple the normal rate. The vendor contract had no after-hours rate schedule. The landlord disputes the cost, and the property manager is caught in the middle.

With Kontractually

Kontractually flags vendor contracts that lack after-hours rate schedules and emergency call-out fees. Rates are agreed before the first emergency, not disputed after the bill arrives.

After-hours costs agreed upfront, not disputed after
Before

A maintenance contractor causes water damage to a tenant's belongings while fixing a leak. The contractor's public liability insurance expired 3 months ago. The property manager is exposed because the contract didn't require current certificates of currency.

With Kontractually

Kontractually flags vendor contracts that lack insurance verification requirements and certificate of currency renewal obligations. Expired coverage is caught before work is authorised.

Insurance compliance verified on every vendor engagement
Before

A cleaning company is engaged for end-of-lease cleans across your portfolio. The contract has no scope definition - just 'end of lease clean.' Disputes arise on every second job about what was included. Three landlords complain in the same month.

With Kontractually

Kontractually flags scope-of-works clauses that lack specificity. The cleaning contract is updated with a detailed checklist of included tasks before the first job, eliminating scope disputes.

Scope disputes eliminated with clear contract terms
Vendor checklist

6 provisions to review in every property management vendor contract.

1
Trade contractor licence and insurance
All trades must hold current licences (state-specific) and public liability insurance (typically $20M minimum). The property manager may have liability exposure if an unlicensed or uninsured contractor causes damage.
2
Scope of works definition
Is the scope clearly defined? For ongoing maintenance contracts, what is included and excluded? Call-out fees, labour rates, parts and materials - all should be specified.
3
Authorisation thresholds
At what spend level does the contractor require prior authorisation from the property manager or landlord? Standard market: routine maintenance under $X without authorisation, anything above requires approval.
4
Liability for contractor negligence
If a maintenance contractor causes damage to the property or a tenant, who bears liability? The contract should address indemnity from contractor to property manager and insurance requirements.
5
Emergency and after-hours response
Emergency call-out response times and after-hours rates should be clearly specified. Many disputes arise when after-hours work is performed without prior authorisation because response times weren't defined.
6
Term and termination
Fixed term vs ongoing. Notice period to terminate. What happens to incomplete works on termination? Minimum engagement periods that lock in the property manager for excessive durations.
FAQ

Vendor contract questions.

More questions? Email us.

At minimum: public liability insurance ($20M is the common requirement for trade contractors working in occupied premises), professional indemnity insurance for advisory services, and workers compensation for their employees. For strata-related work, some contractors also need contract works insurance. The property manager should verify current certificates of currency before authorising work - not just at contract signing.

Common market practice: authorise routine maintenance up to $500-$1,000 without landlord approval (property manager discretion), require landlord approval for anything above. Emergency works (urgent repairs to prevent damage) are often pre-authorised up to a higher threshold. Specify these thresholds explicitly in the contractor agreement to avoid disputes when bills arrive.

The vendor contract should require the contractor to maintain current insurance for the duration of the engagement and provide updated certificates of currency on renewal. If insurance lapses, work should be suspended until coverage is reinstated. Many property managers only check insurance at contract signing and never verify again. Kontractually flags contracts that lack ongoing insurance verification requirements and certificate renewal obligations, so the obligation is contractual rather than relying on manual follow-up.

Residential tenancy legislation in most states requires landlords (and their agents) to arrange urgent repairs within specific timeframes - typically 24-48 hours for issues like burst pipes, dangerous electrical faults, or failures of essential services. The vendor contract should pre-authorise emergency work up to a defined threshold (commonly $1,500-$3,000) so the contractor can respond without waiting for landlord approval. The contract should also define what constitutes an emergency, specify after-hours rates, and require the contractor to notify the property manager as soon as practical after commencing emergency work.

Yes, in certain circumstances. If the property manager engaged an unlicensed contractor, failed to verify insurance, or continued to use a contractor with a known history of poor work, the property manager may share liability for damage caused. The vendor contract should include an indemnity from the contractor to the property manager for claims arising from the contractor's negligence. Kontractually flags vendor contracts that lack indemnity provisions, insurance requirements, or licence verification obligations.

Review every vendor contract before engagement.

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