Templates

Property management agreement: the clauses that cost

Four clauses to copy, the ones whose absence gets expensive: messaging scope, response time, incident escalation and how the agreement ends.

12 min

Management agreements all look alike. They state the percentage, the cleaning, the linen and the key handover. Almost none of them says who answers the guest at 10 pm, within what delay, or what happens the day the arrangement stops. Those three silences are what create disputes. Here are four clauses to copy, together with what French law already imposes without you writing it down.

  1. The legal floorMandate, liability and revocation, with no clause to write
  2. The clausesMessaging, delay, escalation, exit: four texts ready to use
  3. The blind spotWhat the fee never says about the actual work

What the law already settles

A management agreement is very often a mandate. The French Civil Code defines it as the act by which one person gives another the power to do something for the principal and in their name. Three consequences follow, and your contract does not need to create any of them.

What appliesWhat it means for you
The agent answers for faults in their managementLiability is assessed less strictly when the mandate is unpaid than when it is paid
The principal reimburses advances and costsReimbursement is owed even when the matter did not succeed, absent fault by the agent
The principal may revoke whenever they see fitThey may also require the documents back. The agent may resign, compensating the principal if the resignation causes harm

The mandate is formed by the agent's acceptance, which may be merely tacit and follow from performance. In other words, a manager who starts working without a signed contract is not outside the law. They are inside a framework nobody wrote.

The French law of 2 January 1970 covers people who habitually carry out operations on other people's property, seasonal furnished letting and property management included, and it does so even as a secondary activity. Those activities require a professional card issued by the president of the chamber of commerce and industry, under four cumulative conditions: professional competence, financial guarantee, professional liability insurance and no disqualification. The exact scope of your service is checked with a lawyer, not in a template found online.

The four clauses to copy

The clauses below drop into an existing contract. They replace neither the fee nor the physical services, which every template already covers. They fill in what is almost always missing.

Scope of guest messagingArticle 170 to 110 words
The manager answers guest messages on the following channels: channels covered. The manager may decide alone: list of autonomous decisions. The manager may not decide alone and asks the owner before replying: list of reserved decisions. Any promise made to a guest outside this scope remains the manager's responsibility. The owner supplies the property information needed for those replies and keeps it current.

The clause missing from every template. Without it, the manager settles a late checkout or a goodwill gesture alone, and you find out once it has been promised. The last line is the symmetric one: a manager cannot answer what they were never told.

Response time and hours coveredArticle 260 to 90 words
The manager answers guest messages within delay during the following hours: hours, days included. Outside those hours, no delay is guaranteed. Messages received are handled when the next covered period opens. Situations classified as urgent in the following article fall outside this limit and follow the escalation procedure.

Writing down the hours that are not covered beats promising a round-the-clock availability nobody keeps. The message peak lands in the early evening, well after an office closes: the curve sits in the common guest questions.

Incident escalationArticle 390 to 130 words
Incidents are handled at four levels. Level 1, inconvenience without urgency: the manager handles it alone and reports it in the periodic summary. Level 2, property partly unusable: the manager may spend up to amount without prior approval and informs the owner the same day. Level 3, property unusable or guest without access: the manager calls the owner, at any hour, on number. Level 4, safety of people or property: the manager acts immediately, calls emergency services if needed, then informs the owner. If the owner does not answer within delay at level 3, the manager is deemed authorised to spend up to amount.

The one article that pays for the contract. A written spending cap avoids the midnight call whose only purpose is approving sixty euros of plumbing. The last line avoids the opposite failure: a guest stuck outside while the owner sleeps.

Ending the agreementArticle 480 to 120 words
Either party may end this agreement in writing, with duration notice. Bookings already confirmed at the date of notice are seen through by the manager, on the terms of this agreement. Within delay of the end of the agreement, the manager returns: access to the property and any duplicates, the codes in force, the operating instructions and documents, and the guest message history of the last twelve months. The owner pays for services performed until the agreement effectively ends, bookings in progress included.

Nobody writes this because nobody pictures the ending while signing. Three things get lost then: the duplicate keys, the instructions that only lived in the manager's head, and the conversation history. The third is the most expensive to rebuild.

What the percentage does not cover

A rate compares badly from one contract to the next, because it covers different scopes. What sits inside a commission is detailed in management fees. What follows is never in there.

  1. Count the hours before arguing about the rate

    Pull your inbound messages by local hour over three months. You will see a daytime plateau then a sharp peak in the early evening. Now overlay the hours the contract truly covers. A normal rate on office-hours cover leaves the evening load exactly where it was.

  2. Name the channels, one by one

    Airbnb, Booking, the phone, direct written messages. A contract that says the inbox without naming the channels lets the manager pick which ones they watch. That is rarely bad faith, it is an unasked question, and one line settles it.

  3. Put a number on the spending cap

    An amount below which the manager acts alone turns half the incidents into non-events. Without it every light bulb escalates, and the real emergency drowns in a stream of trivial approvals.

  4. Write the ending while things are good

    Notice, the fate of confirmed bookings, the return of access then of the history. Four lines signed on day one beat a negotiation held on the day trust has already broken.

What no clause delegates is what you know about the property. The exact move that opens the door, where the breaker sits, the plumber's name. As long as those instructions live in your head, the manager calls you for every evening question, whatever the contract says. A house manual kept current is the piece the contract assumes without ever providing it.

What messaging becomes once the scope is written
  • CopiloteThe reply is drafted and waiting. You read it, you adjust, you send.
  • HybrideReplies go out on their own during your hours. Control returns to you outside them.
  • AutopiloteThe reply goes out on its own. Anything outside the known scope comes back to you instead of being invented.
The clauses in detail, article by article
Why the mandate qualification is not a detail
A mandate is the act by which one person gives another the power to do something for them and in their name. A manager who accepts bookings, collects money, or answers guests under the owner's identity sits inside that shape. The practical consequence is one sentence long: several rules apply without the contract mentioning them, and a contract that contradicts them sets up a hard conversation.
The manager's liability depends on being paid
The agent answers not only for wilful misconduct, but also for faults committed in their management. The Code provides that this liability is assessed less strictly when the mandate is unpaid. A favour from a neighbour is therefore not judged like an invoiced service. That is one more reason to formalise a fee, however modest, when the mission is real.
Advances are owed even when the operation fails
The principal reimburses the agent's advances and costs, then pays the agreed remuneration. That reimbursement is owed even if the matter did not succeed, absent fault by the agent. Many contracts say nothing about consumables, small repairs, or travel. Silence does not remove the debt. It only moves the discussion to invoice day.
Revocation is freer than people assume
The principal may revoke the power of attorney whenever they see fit, and require the documents back. That does not make the notice clause useless. Quite the opposite: the clause organises what happens between the decision and the actual end of the services. Without it, revocation is possible but abrupt, and nobody knows who answers guests already on site.
The manager can walk away too
The agent may resign from the mandate by notifying the principal. They must nonetheless compensate the principal if the resignation causes harm, unless they are unable to continue. A manager stopping mid-season leaves a portfolio with nobody answering. That is precisely the case the exit clause has to cover, along with seeing confirmed bookings through.
The professional card, the point to have checked
The law of 2 January 1970 covers operations on other people's property, including seasonal furnished letting and property management, carried out habitually and even as a secondary activity. It subjects them to a professional card issued by the president of the chamber of commerce and industry, with professional competence, financial guarantee, liability insurance and no disqualification. The word habitually does a lot of work in that sentence. Have a lawyer qualify your service rather than a forum.
Name the channels rather than the inbox
A contract that mentions the inbox without naming platforms leaves everyone guessing. Airbnb, Booking, the phone, direct written messages and email are not watched the same way or at the same pace. List the channels covered, then the ones that are not. An unlisted channel is a channel nobody checks, and it is always the one a guest picks on a Sunday evening.
A response time means nothing until it is measured
A delay without hours attached is an empty promise. One hour between 9 am and 6 pm is not one hour at any hour. Write both down, then write what happens overnight. On the portfolios we measure, the peak lands in the early evening, so the gap between those two drafts covers exactly the moment the service matters most.
Four escalation levels beat the word emergency
The word emergency does not mean the same thing on both sides of a contract. A four-level grid replaces it with facts: inconvenience, property partly unusable, property unusable or guest without access, safety of people. Each level carries a recipient, a delay and a spending cap. The grid authorises as much as it forbids, which is what a good contract article does.
The spending cap protects both sides
An amount below which the manager acts without approval removes half the calls. It also protects the manager, who no longer has to choose between leaving a guest stranded and spending money they will be blamed for. Set that cap per intervention, not per month, then provide for what happens when the owner does not answer within the agreed delay.
The message history is the only thing truly lost
Keys get recut, codes get changed, instructions get rewritten. The guest message history disappears with the manager's account when nothing was agreed. Yet it is the material that explains your reviews, your recurring incidents and your most frequent questions. A twelve-month return clause costs one line to write.
Bookings in progress when the contract ends
This is the most common gap. A contract ends, guests have already booked for the following two months. Who welcomes them, who answers, who earns the commission on those stays. Three questions, three lines. Without them, the ending is settled case by case, at the moment both parties are least inclined to agree.
The periodic report, the clause that prevents the others
A short recurring summary, listing incidents handled, money spent and questions left unanswered, does the work of supervision without the supervision. It also makes invisible work visible, the kind a percentage drowns in the mass. It is the least contentious clause to add, and the one that defuses the most arguments a year later.
This document is not legal advice
The clauses here are starting points written from operations, not from a law firm. The texts cited are public. Their application to your situation is not. Have your contract reviewed by a lawyer, in particular on how your activity is qualified and on the obligations that follow. A review costs nothing next to a dispute.

Frequently asked questions

Is a property management agreement a mandate?

Under French law, it usually is, as soon as the manager acts for the owner and in the owner's name. The Civil Code defines a mandate as the act by which one person gives another the power to do something for the principal and in their name. That qualification has effects the contract cannot ignore, especially on the agent's liability and on revocation.

Can the owner end the agreement whenever they want?

On mandate grounds, the French Civil Code provides that the principal may revoke the power of attorney whenever they see fit and require the documents back. The manager may resign by notifying the principal, but owes compensation if that resignation causes harm. This is exactly why a written exit clause is better than silence.

Does running a management business require a professional licence in France?

The question is a serious one. The law of 2 January 1970 covers people who habitually, even as a secondary activity, carry out operations on other people's property, including seasonal furnished letting and property management. Those activities require a professional card issued by the chamber of commerce and industry, with professional competence, financial guarantee and liability insurance. Have the exact scope of your service assessed by a lawyer.

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