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Role of a service contractor and letting agent

A body corporate may engage

  • service contractors and
  • caretaking service contractors.

A body corporate may also authorise letting agents.

These people perform specific duties to help a body corporate meet its legal obligations.

What is a service contractor?

The information in this section applies to schemes registered under the all the regulation modules.

Where there is any differences between the regulation modules this will be specifically identified.

Service contractors supply services for the benefit of the common property or the lots included in the scheme.

A service contractor is someone engaged by a body corporate for at least 1 year to supply services other than administrative services.

See section 15 of the Body Corporate and Community Management Act 1997 for the definition of a service contractor.

The services they provide can include but are not limited to:

  • cleaning the pool
  • lawn mowing
  • gardening.

A service contractor is not an employee.

Body corporate managers are not service contractors. Body corporate managers are contracted by the body corporate to supply administrative services.

What is a caretaking service contractor?

Schemes that are registered under the Small schemes Module and the Specified two lot Module are not able to engage a caretaking service contractor.

A caretaking service contractor is a service contractor for a community titles scheme who can also be authorised as a letting agent for the scheme (or an associate of a letting agent for a scheme.)

See section 16 of the Body Corporate and Community Management Act 1997 for the definition of a letting agent.

If they own their lot they are able to vote at general meetings. They are automatically a non-voting member of the committee but are ineligible to be a voting member.

The person is often referred to as having the ‘management rights’ and can be known under different names such as the caretaker, building manager, onsite manager or resident manager.

What is an authorised letting agent?

Schemes that are registered under the Small Schemes Module and the Specified Two Lot Module are not able to authorise a letting agent for the scheme.

A letting agent is authorised by the body corporate to let lots and collect rents for investor owners. They must be licensed under the Property Occupations Act 2014 .

Check licence requirements with the Office of Fair Trading

Generally a caretaking service contractor is also authorised to be the letting agent for the scheme and owns or leases a lot and runs the letting agent business from that lot

There is no need for a letting agent to give the body corporate details of the letting arrangements. However, they may have to give the body corporate some information on lots for the body corporate roll.

Owners do not have to use the authorised letting agent to let their lots. Owners may choose to let their lots privately or use a real estate agent.

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.

See the Body Corporate and Community Management Act 1997

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 be fraudulent or misleading

The Act does not include a code of conduct for a service contractor.

Read more about how to:

Further questions?

If you have further body corporate questions you can submit an enquiry or phone the information service on 1800 060 119 (freecall).

We cannot give legal advice or rulings—we can only give you general information on body corporate legislation.

Contract advice

You should get independent legal advice about your contract.

We cannot interpret or give legal advice about body corporate contracts.

Complex disputes

Complex disputes are generally dealt with by the Queensland Civil and Administrative Tribunal.

Last updated
5 February 2018
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