Service contractors
Role of a service contractor and letting agent
Service contractors
Service contractors supply services that benefit the common property or the lots included in the scheme.
A service contractor is someone engaged by a body corporate to supply services (other than administrative services) for at least a year. They are not an employee.
Examples of the services they provide are:
- cleaning the pool
- lawn mowing
- gardening.
Body corporate managers are not service contractors. They are contracted by the body corporate to supply administrative services.
Caretaking service contractors
A caretaking service contractor is a service contractor for a community titles scheme who is also authorised as a letting agent for the scheme (or an associate of a letting agent for a scheme).
The caretaking service contractor generally owns or leases a lot and runs the letting agent business from that lot. If they own their lot they can vote at general meetings.
They are automatically a non-voting member of the committee and ineligible to be a voting member.
Schemes registered under the Small Schemes or Specified Two-lot Schemes modules cannot engage a caretaking service contractor.
Disclosing commissions, payments or other benefits
If your caretaking service contractor receives a commission, payment or other benefit, they must disclose it to the body corporate.
Find out more about disclosures within a body corporate.
Authorised letting agent
A letting agent is authorised by the body corporate to let out lots and collect rent for investor-owners. They must be licensed under the Property Occupations Act 2014.
You can check licence requirements and check a property licence.
There is no need for a letting agent to give the body corporate details of letting arrangements. However, they may have to give the body corporate some information for the body corporate roll, such the name and address of the tenants for leases of 6 months or more.
Owners do not have to use the authorised letting agent to let their lots. They can choose to let their lots privately or use a real estate agent.
Schemes registered under the Small Schemes or Specified Two-lot Schemes modules cannot authorise a letting agent for their scheme.
Codes of conduct
A caretaking service contractor must comply with the code of conduct for body corporate managers and caretaking service contractors, as well as the code of conduct for letting agents.
The code of conduct is automatically included in the terms of their engagement. If there is a difference between the code of conduct and their engagement, then you should always refer to the code of conduct.
Under the code, a caretaking service contractor must:
- have a good knowledge and understanding of the Act and the code that applies to them
- act honestly, fairly and professionally in doing their job
- act in the best interests of the body corporate (if lawful to do so)
- not unfairly influence the outcome of a motion or election
- not be fraudulent or misleading.
Find the codes of conduct in the Body Corporate and Community Management Act 1997 for:
- body corporate managers and caretaking service contractors (schedule 2)
- letting agents (schedule 3)
The Act does not include a code of conduct for a service contractor.
In this guide:
- Role of a service contractor and letting agent
- Engaging a service contractor
- Amending an engagement
- Transferring an engagement
- Terminating an engagement