Management Agreements and Liability

Contracts, money handling, insurance and protecting yourself

Managing other people's short lets needs almost no capital, but it does need a proper legal footing, and this book shows you how to build one. It explains why your legal position rests on agency, why permissions still matter even though you do not own the property, and what the management agreement with each owner, the most important document your business holds, must contain. The insurance and safety chapter covers the duties where a small oversight becomes a large problem. The tax chapter separates your own income from money that merely passes through your hands, and helps you choose a structure that suits a fee business. You will leave with five habits that remove most of the risk: sign proper agreements, check permissions before taking a unit, keep other people's money separate, carry the right insurance and keep records. A full compliance checklist and an honest account of what getting it wrong costs complete the book. Next in this series: “Building a Management Company”.

What’s inside

• The legal framework in plain English
• Permissions, licensing and planning
• The contracts, and what must be inside them
• Insurance, safety and your legal duties
• Tax treatment and choosing a structure
• Your compliance checklist
• Getting this wrong: what it actually costs

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.