Property Management Company: Legal Obligations and Fees 2026

The managing agent is not the decision-maker for the building. They act as its agent: they carry out decisions taken by the general meeting, manage the building and represent the association of co-owners. This status as agent shapes everything else — the scope of their powers, the structure of their fees, and the rules governing their liability. Most disputes stem from confusion on this point: blaming the managing agent for a decision they did not make, or letting them make a decision that was not theirs to make.

Three distinct duties

Administrative management. Convening the general meeting at least once a year, keeping the minutes, notifying decisions, keeping the list of co-owners and the building's maintenance log up to date. The managing agent must also register the building with the national register and keep the data updated.

Financial management. Opening a separate bank account in the name of the association of co-owners — a mandatory requirement in principle, which can only be waived by an express decision of the general meeting and in limited cases. The managing agent calls for service charge instalments, keeps the accounts under a specific chart of accounts, and submits the accounts for approval by the general meeting. For a co-owner who lets their unit, only part of these charges can be recharged to the tenant, according to the exhaustive list detailed in our article on recoverable service charges. The managing agent must also set up the works reserve fund, contributions to which become mandatory once the building reaches a certain age.

Technical management. Ensuring the upkeep of the building, having approved works carried out, and taking protective measures in the event of an emergency. This last power is the only one allowing the managing agent to commit expenditure that has not been voted on, and it is interpreted strictly: an emergency implies a risk to the safety or preservation of the building, not merely a convenient opportunity.

Fees: the flat fee and additional services

This is the most frequent source of disputes, and the rules are set out in a statutory standard contract.

The managing agent's fees are based on an annual flat fee covering all day-to-day management services. This flat fee is all-inclusive: everything that falls within day-to-day management is included in it and cannot be billed separately.

Alongside this, an exhaustive list of additional services may give rise to additional remuneration — organising an extra general meeting, overseeing major works, debt-recovery procedures, or issuing certain documents when a unit is sold.

The key point to watch is this: any service not on this list necessarily falls within the flat fee. A managing agent who charges for routine reminder letters, photocopying or bookkeeping is stepping outside the rules. Comparing two contracts therefore means looking at the flat fee and the schedule of additional services, never at the headline flat fee alone.

Recovery costs incurred against a defaulting co-owner, however, are charged to that co-owner alone, and are not spread across everyone.

The appointment: term, designation and removal

The managing agent is appointed by the general meeting for a term set out in the contract, capped at three years — one year where the managing agent is appointed under the co-ownership regulations or by the first purchaser.

The appointment is not renewed automatically: it requires a vote. A competitive tender must be organised before each renewal, although the co-owners' committee may be exempted from this by a decision of the general meeting.

The removal is possible at any time by the general meeting, but it requires a legitimate reason: removal without cause exposes the association of co-owners to damages for wrongful termination. The matter is placed on the agenda and voted on like any ordinary decision.

The managing agent's liability

The managing agent is liable to the association of co-owners for management failings. The most commonly identified breaches are as follows:

• The failure to convene the annual general meeting, which brings the co-ownership to a standstill.
• The failure to pursue recovery of unpaid service charges, which may become time-barred for lack of action.
• The failure to carry out approved works, or carrying them out without authorisation.
• The negligence in taking out the insurance required by law.
• The failure to comply with the separate bank account requirement.

By contrast, the managing agent is not liable for decisions taken by the general meeting, even where they advised against adopting them, nor for the general meeting voting through an inadequate budget.

Establishing liability requires fault, loss and a causal link. The claim becomes time-barred under the ordinary rules, with the nuances as to when the limitation period starts explained in our article on limitation periods for debts.

The role of the co-owners' committee

The co-owners' committee assists the managing agent and oversees their management. It gives its opinion on matters referred to it, and its opinion is mandatory above a certain contract or procurement threshold.

It has a right of access to documents: it may inspect any document relating to the management and administration of the building. This right is the main lever of oversight during the term of appointment, and is far more effective than challenging the accounts after the fact.

Practical scenarios

Changing managing agent. Check the expiry date of the appointment, put the contract out to tender, and put the appointment on the agenda. Handing over the archives and funds to the successor is subject to strict deadlines, and failure to meet them makes the outgoing managing agent liable.

Disputing fees. Compare the invoice against the standard contract: does the disputed service appear on the exhaustive list of additional services? If not, it falls within the flat fee and is not payable.

Urgent works. The managing agent may take the necessary protective measures, provided they inform the co-owners and convene the general meeting. Expenditure presented as urgent after the fact, without any proven risk, does not fall within this framework.

Landlord co-owner. The managing agent's calls for funds and the reconciliation of charges with the tenant follow two separate timetables, and the second depends on the first — the annual closing of the building's accounts is a precondition for the tenant reconciliation. This sequence is described in our guide to rental management.

Frequently asked questions

Can the managing agent decide on works alone? No, except for urgent protective measures needed to safeguard the building. Any other expenditure requires a vote of the general meeting.

Is a separate bank account mandatory? Yes, in principle, in the name of the association of co-owners. Exemptions are limited and require an express decision of the general meeting.

Can a managing agent charge reminder fees? Not if they fall within day-to-day management covered by the flat fee. Only services appearing on the exhaustive list in the standard contract can give rise to additional remuneration, and recovery costs are charged solely to the defaulting co-owner.

How do you remove a managing agent? By a vote of the general meeting, with the matter placed on the agenda. Removal requires a legitimate reason, failing which the association of co-owners risks being ordered to pay damages.

Does the appointment renew automatically? No. Each renewal requires a vote, preceded by a competitive tender unless the general meeting votes to waive it.

What is the managing agent liable for? For their own management failings: failure to convene meetings, failure to pursue recovery, non-performance of approved works, or failure to take out insurance. They are not liable for decisions taken by the general meeting.

Key takeaways

The managing agent implements, the general meeting decides. This division settles most disputes: whatever has not been voted on falls outside their remit, and whatever has been voted on falls within their responsibility to carry out.

On fees, the framework is just as simple. The flat fee covers day-to-day management in full; only services listed on the exhaustive list in the standard contract can be added to it. Comparing two managing agents on their annual flat fee alone regularly leads to choosing the more expensive one.