MKB Juristen drafts custom legal documents
It is best not to cobble together or copy important contracts, terms and conditions, and other legal documents yourself. We help entrepreneurs on a budget with customized legal solutions, clear costs upfront, and practical explanations.
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Having a management agreement drafted by a lawyer typically costs between €500 and €1,500, depending on the scope of the management and whether a power of attorney and a third-party funds flow are involved. If you only have the manager's template reviewed, the cost is usually between €250 and €600. You are primarily paying for three things: a watertight limit of authority, an accountability arrangement that goes beyond the statutory minimum of Article 7:403 of the Dutch Civil Code, and a liability and termination arrangement that does not fall out of the agreement if the collaboration ends.
The short answer
- Drafting costs: €500 – €1,500 for a tailored management agreement.
- Check costs: €250 – €600 for an assessment of the administrator's contract.
- Turnaround time: typically five to ten working days after a complete intake interview.
- What you get: job description, power of attorney with limits, cash flow, reporting, and exit arrangement.
- Do it yourself: for simple management without power of attorney and without a cash flow, a good model may suffice.
Having a management agreement drawn up: what does it cost?
The price follows the complexity of the management, not the number of pages:
- Simple property management, one property, no rent collection: €500 – €750.
- Standard rental management with rent collection, service charges, and a power of attorney: €750 – €1,250.
- Portfolio or HOA management with multiple properties, budgets, and multi-year maintenance: €1,000 – €1,750.
- Management of an enterprise, with control issues and demarcation vis-à-vis the board: €1,250 – €2,500.
- Review of a submitted model with a point-by-point response: € 250 – € 600.
If you work with a dedicated manager for multiple properties, a framework agreement with a short appendix for each property is almost always cheaper than separate contracts. Ask for a fixed price in advance; management contracts are easy to define, so an hourly rate without a ceiling is rarely necessary here.
When are you having it drawn up?
Not every property management requires a lawyer. Do so in these situations:
- The administrator may sign on your behalf. This concerns a power of attorney (Art. 3:60 et seq. of the Dutch Civil Code), and you must define the limit. Without a limit, you run the risk of becoming bound by obligations you did not want, especially if you have ratified previous actions (Art. 3:61 paragraph 2 of the Dutch Civil Code).
- Money flows run through the property manager. Rent and service charges remain yours. Without a separate account, you are an unsecured creditor in the event of the property manager's bankruptcy.
- This concerns a portfolio or Owners' Association. Budgets, multi-year maintenance, and accountability require stricter regulations than for a single property.
- The manager leads an enterprise. In that case, the demarcation from the statutory board and the general meeting is essential, as well as the question of whether a relationship of authority arises that can be qualified as an employment contract (Art. 7:610 BW).
- The administrator provides his own contract. These templates are written from his perspective, with generous disclaimers, set-off rights, and long notice periods.
The process step by step
- Intake: which object or company, which type of management, which cash flows, and which powers do you want to grant.
- Review documents: existing lease agreements, service charge agreements, insurance policies, and possibly the property manager's template.
- Determining the limit of authority: threshold amount, annual budget, excluded actions, and emergency procedure.
- Draft: contract plus, where necessary, a separate power of attorney and a data processing agreement for tenant data.
- Discuss and adjust: one round with you, then possibly a round with the administrator.
- Signing and recording of the attachments, such as the item list and the maintenance budget.
Count on five to ten working days if you have the documents at hand. In practice, the delay is almost always with the submission of rental agreements and policies, not with the writing.
What you get for your money
The difference compared to a downloaded model lies in the points that only incur costs if things go wrong. A lawyer:
- writes the job description in such a way that it is also clear what does not fall under management;
- links the power of attorney to threshold amounts and excluded actions, instead of an open formulation;
- makes accounting and accountability (Art. 7:403 BW) concrete with frequency, format, and right of inspection;
- regulates the flow of cash: separate account, remittance period and a prohibition on set-off against disputed items;
- makes the limitation of liability defensible, linked to the insured sum and with the exception of intent and conscious recklessness;
- works out the exit : notice period within the framework of Art. 7:408 of the Dutch Civil Code, final settlement, transfer of files, and no retention on the administration.
Brief practical example
An owner of twelve apartments terminates the management following persistent complaints. The manager is withholding the tenant records and two months' worth of collected rent until his final invoice is paid. The contract, a template provided by the manager himself, is silent regarding remittance and transfer. It took three months and legal proceedings before the owner could regain access to his own data. A remittance period and an excluded right of retention would have prevented this, and those two provisions cost nothing extra to draft.
Honest recommendation
You do not need a lawyer for the simple management of a single property or unit, where the manager only performs executive tasks, does not collect rent for you, and does not sign anything on your behalf. A reliable model with a clear job description, remuneration, and notice period is sufficient in this case, saving you several hundred euros.
If it involves a power of attorney, a flow of money, a portfolio, or management of a company, have the contract drafted or at least reviewed. When using a provided template, opt for the review option: for €250 to €600, you will know which provisions work against you and what proposals you can take back to the manager. This is usually the cheapest way to eliminate the risk.
Read more: what is a management agreement and drafting a management agreement. You can have one drafted immediately via the management agreementpage.
Frequently Asked Questions
Typically €500 – €1,500, depending on the scope of management, the power of attorney, and the cash flows. Portfolio and HOA management are higher, while managing a business can run up to €2,500. Having it checked alone usually costs €250 – €600.
Five to ten working days after a complete intake interview. The turnaround time depends primarily on how quickly you provide rental contracts, service charge agreements, and policies, and whether a round of negotiations with the property manager follows.
That is possible, but have it checked. These models are written from the perspective of the administrator, with broad limitations of liability, set-off rights on collected rents, and long notice periods. A point-by-point assessment is usually sufficient.
For simple management of a single property where the manager only performs executive tasks, does not collect rent, and does not sign anything on your behalf, a good model outlining tasks, compensation, reporting, and notice period suffices. However, the situation changes as soon as a power of attorney or payment flow is involved.
A clearly defined job description, a power of attorney with threshold amounts and excluded actions, a concrete implementation of accounting and accountability (Art. 7:403 BW), a separate cash flow with a remittance period, a defensible limitation of liability, and a comprehensive exit arrangement.
Often, yes. The management agreement governs the internal relationship; the power of attorney (Art. 3:60 et seq. of the Dutch Civil Code) determines whether the manager can bind you vis-à-vis third parties. A separate power of attorney with clear limits is useful to show to tenants, contractors, and banks.
Yes, with the consent of both parties. Changes can be made in writing via an addendum, for example in the event of an expansion of the list of objects or a new maintenance budget. If you wish to terminate the agreement, you, as the client, may in principle cancel at any time (Article 7:408, paragraph 1 of the Dutch Civil Code), subject to the agreed notice period.
