Property Management Agreements in Cambodia: How to Protect Your Apartment and Money

Prepared by the NovAsia Editorial Team

An overseas apartment owner often compares property managers by one figure: the monthly percentage of rent. If one company charges 8% and another charges 10%, the first appears cheaper.

The largest losses, however, rarely come from a two-percentage-point difference.

They arise when a manager reduces the rent without approval, holds the tenant's deposit in an operating account, uses a related contractor, fails to provide invoices, delays transferring rent for months, or refuses to return keys and tenant records after termination.

A management agreement should regulate much more than commission. It determines who controls the apartment, the money, and the relationship with the tenant.

A good manager makes remote ownership practical. A weak agreement can make the manager the only person who knows who lives in the apartment, what the tenant has paid, and what condition the property is in.

Condominium management and apartment management are different functions

A condominium normally already has a management company, co-owner body, or other operator responsible for common property. Its work may include elevators, security, the pool, facade, lobby, shared engineering systems, house rules, and service-charge collection.

A manager appointed by an individual apartment owner acts for that owner. Services may include:

• advertising the unit;
• finding and screening tenants;
• negotiating lease terms;
• signing the lease;
• collecting rent;
• holding the deposit;
• inspecting the apartment;
• arranging internal repairs;
• paying bills;
• assisting with tax administration;
• reporting to the owner.

The same company may perform both roles, especially where it is connected with the developer. That can be convenient, but it also creates potential conflicts.

The building manager is responsible for protecting the condominium budget and enforcing common rules. The owner's apartment manager may need to challenge an incorrect common-property charge or press the building operator to repair a shared system. The agreement should state which role the company is performing in each situation.

The legal relationship combines mandate and representation

Cambodia's Civil Code regulates mandate, under which one party entrusts another to manage specified affairs.

The mandatary is expected to act with the care of a good manager, report when requested, and transfer money, property, and rights received while carrying out the mandate.

Separate Civil Code provisions address representation toward third parties.

The distinction matters:

• the management agreement defines the manager's internal duties to the owner;
• a power of attorney or express authority shows tenants, banks, contractors, and other third parties what the manager may sign.

If the management agreement prohibits reducing rent, but a broad power of attorney allows the manager to enter any transaction without restriction, the owner has created unnecessary risk. The two documents should be consistent.

The service list should be specific

The phrase “full property management” sounds comprehensive but explains very little.

The agreement should say separately whether the manager may:

• advertise the unit and choose platforms;
• use photographs of the apartment;
• change the asking rent;
• offer a discount or rent-free period;
• select the tenant;
• verify identity and financial information;
• sign the lease;
• renew it;
• agree to early termination;
• demand that the apartment be vacated;
• collect rent;
• hold the deposit;
• pay condominium charges;
• arrange repairs;
• purchase furniture;
• contact the insurer;
• appoint other agents;
• represent the owner before the condominium manager;
• file tax documents;
• take part in a dispute;
• market or sell the apartment.

A sale should not normally be implied by a general management agreement. It should be covered by a separate agency appointment and specific authority.

The wider the manager's authority, the stronger the controls over client money, reporting, and conflicts should be.

A powers matrix is better than a general authorization

A practical agreement divides actions into categories.

The amounts are examples, not market standards.

Emergency authority should be addressed separately. If a pipe is actively leaking, the manager should be able to shut off the water and call a technician without waiting for the owner to wake up in another time zone.

Emergency authority should not be used to justify planned furniture replacement or a broad renovation through a related contractor. After urgent work, the manager should provide:

• a description of the event;
• photographs;
• the invoice;
• an explanation of why prior approval was impractical;
• a list of actions taken;
• any remaining risk.

The rental strategy belongs to the owner

A local manager may understand current tenant demand better than an overseas owner. The manager's role is to recommend a strategy, not silently replace the owner's investment plan.

The agreement or a separate written instruction should establish:

• target and minimum rent;
• preferred lease term;
• currency;
• deposit amount;
• permitted rent-free period;
• pet and smoking rules;
• prohibition or conditions for subletting;
• corporate use;
• maximum occupancy;
• utility-payment structure;
• parking arrangements;
• furniture package;
• early-termination rules;
• renewal procedure.

The manager may be allowed to negotiate within an agreed range. For example, the listing price may be USD 700, the minimum acceptable rent USD 650, and any lower figure may require written approval.

Without a range, a manager may end vacancy quickly at a low rent, collect a leasing commission, and leave the owner with the long-term loss.

Tenant screening should meet a minimum standard

An empty apartment creates pressure to accept the first willing applicant. A poor tenant can cost far more than several additional weeks of vacancy.

A minimum screening process may include:

• identity documents;
• contact details;
• employer or business information;
• evidence of income where available;
• a reference from a previous landlord;
• number of occupants;
• intended use;
• sanctions or anti-money-laundering checks where genuinely required;
• company documents for a corporate tenant;
• an emergency contact.

The documents available in Cambodia vary. No screening process should be presented as infallible.

The manager should give the owner a short written assessment and explain any concerns rather than saying only that the applicant “looks good.”

Subletting, short-term accommodation, and use of a residential unit as an office require particular attention, especially where condominium rules restrict those activities.

The owner should receive the complete lease file

Some managers sign leases while the owner receives only a monthly transfer. That arrangement deprives the owner of control over the property.

The owner should have access to:

• the signed lease;
• appendices;
• the inventory;
• the condition report;
• tenant documents to the extent reasonably required;
• payment schedule;
• amendments;
• notices;
• arrears correspondence;
• move-in photographs.

The lease should identify the legal landlord correctly. A manager may sign as the owner's authorized representative. The document should not incorrectly suggest that the manager is renting out the apartment in its own name if the owner remains the legal and economic landlord.

Termination of the management agreement does not automatically terminate the tenant's lease. A new manager must be able to take over the file without depending on the outgoing company's commercial goodwill.

Tenant money needs a defined route

Rent may be paid:

• directly to the owner;
• into a separate client account of the manager;
• into a pooled client account with individual property ledgers;
• into the manager's operating account;
• in cash;
• through a payment platform.

The most transparent structures are direct payment to the owner or a properly segregated client-money system with full transaction records.

If the manager receives rent, the agreement should specify:

• the account name and purpose;
• the status of the money as belonging to the owner;
• prohibition on mixing it with the manager's own funds;
• payment references;
• the deadline for remittance to the owner;
• permitted deductions;
• bank charges;
• currency conversion;
• reconciliation with bank statements;
• owner audit rights;
• what happens if the account is frozen;
• prohibition on undocumented set-off.

The Civil Code requires a mandatary to transfer money received while performing the mandate and may impose responsibility where it is used for the mandatary's own purposes. Preventive controls are still far stronger than a legal claim after the money has disappeared.

The tenant's deposit is not the manager's income

A security deposit does not belong to the person whose bank account physically holds it. It secures specified tenant obligations and should be returned after the lease, less justified deductions.

The management agreement should answer:

• who holds the deposit;
• in which account;
• who receives interest, if any;
• whether the money may be used;
• what obligations it secures;
• how the move-in condition is documented;
• who approves deductions;
• when the balance is returned;
• how the deposit is transferred to a new manager;
• what happens if the apartment is sold.

Cambodia's Civil Code contains general custody provisions, but parties should not invent a universal statutory refund deadline or deposit amount for every private lease. Those terms should be stated in the lease and management agreement.

A particularly dangerous practice is using security deposits as working capital and expecting future rent collections to fund refunds.

The inventory protects both owner and tenant

Without a move-in condition report, it is difficult to prove which damage occurred during the tenancy.

The record should cover:

• furniture;
• appliance models and serial numbers where useful;
• keys and access cards;
• utility meter readings;
• walls, floors, and windows;
• plumbing fixtures;
• air conditioners;
• existing defects;
• dated photographs and video.

A similar inspection should be completed at move-out.

Normal wear should be distinguished from tenant damage. The agreement should explain who assesses damage and whether the manager may deduct from the deposit without owner approval.

If a related contractor performs the work, both the owner and tenant should be able to see the calculation and supporting invoice.

Repairs require limits and evidence

Air conditioners, water heaters, pumps, washing machines, and furniture will require maintenance. A manager is valuable precisely because those problems can be handled quickly.

Without clear controls, however, repairs create three risks: unnecessary work, inflated prices, and undisclosed commissions.

A practical structure may include:

• emergency work without approval up to a separate limit;
• routine repairs within a monthly or per-item threshold;
• written approval above that threshold;
• two or three quotations for major work;
• disclosure of any connection with the contractor;
• no markup unless a coordination fee is agreed;
• invoice and proof of payment;
• before-and-after photographs;
• warranty information;
• confirmation of who owns replaced equipment.

An unrealistically low threshold forces the manager to wait for approval on every minor issue. An unlimited threshold allows repair commissions to become more important than the stated management fee.

Conflicts of interest should be disclosed in advance

Cambodia's Civil Code restricts certain representative actions in conflict situations, including self-dealing and simultaneous representation of both sides without appropriate consent.

In property management, a conflict may arise where the manager:

• represents both owner and tenant;
• is connected with the developer;
• also manages the entire condominium;
• receives money from contractors;
• sells furniture;
• refers work to an affiliated insurer;
• receives supplier commission;
• manages several competing units;
• represents the buyer when the apartment is sold.

A relationship does not automatically make the service poor. A related contractor may respond faster, and the building manager may have superior access. The owner should nevertheless know:

• who receives additional compensation;
• whether the supplier is compulsory;
• whether alternatives are allowed;
• how tenant inquiries are allocated among competing units.

A disclosed conflict can be managed. A hidden conflict becomes an uncontrolled cost.

Reporting should reconstruct the movement of money

A monthly report is useful only if it can be verified.

Invoices and receipts should be attached. The owner needs bank evidence, not only the manager's spreadsheet. Each apartment should have a separate ledger.

A quarterly operational report may also show vacancy, upcoming lease expiry, rent review, expected maintenance, and building condition.

The manager does not need to write a long essay every month. The manager does need to make every material cash movement traceable.

Taxes should not be hidden inside a net transfer

The manager may collect rent, calculate applicable tax, file documents, pay on behalf of the owner, or simply provide information to the owner's adviser.

Prakas No. 169 regulates tax on rental income from immovable property and is listed as effective. The exact treatment depends on the owner, tenant, registration position, and ownership structure.

If the manager deducts money “for tax,” the owner should receive:

• the legal basis;
• the calculation;
• the return or filing information;
• payment receipt;
• withholding certificate where applicable.

An amount retained without evidence remains money held by the manager, not proven tax payment.

Condominium service charges need separate control

A manager may pay building charges for the owner. The agreement should say:

• whether the manager receives the invoice;
• whether arrears are checked;
• whether the manager may challenge a charge;
• whether a special assessment may be paid;
• what approval is required;
• who obtains a clearance certificate;
• how fee increases are reported.

Where one company manages both the building and the apartment, the owner especially needs separate reporting. The apartment-management fee should not conceal common-property charges.

Insurance and the manager's liability

The owner may have insurance for the apartment, internal finishes, landlord liability, or lost rent.

The manager should know the policy requirements, report incidents promptly, preserve evidence, prevent damage from worsening, and communicate with the insurer within the granted authority.

Management agreements sometimes contain very broad exclusions of liability. The owner should distinguish between:

• ordinary commercial risk;
• tenant actions;
• hidden defects;
• common-property failures;
• manager negligence;
• fraud;
• misuse of client money;
• acts of contractors selected by the manager.

No manager can guarantee that losses will never occur. An exclusion clause should not make the duty to act carefully meaningless.

The fee structure should create the right incentives

Common charges include:

• leasing commission;
• monthly management percentage;
• renewal fee;
• inspection fee;
• repair-coordination fee;
• contractor markup;
• vacancy fee;
• check-in and check-out fees;
• sale commission.

If the manager receives a full leasing commission whenever the tenant changes, frequent turnover may become profitable for the manager. If the monthly fee is based on rent actually collected, the manager's interest is more closely aligned with the owner's. If it is based on rent due regardless of payment, the owner pays management fees even during arrears.

The agreement should also state whether the headline percentage includes VAT, bank charges, co-broker fees, advertising, photography, translation, and tax assistance.

A low advertised percentage can become expensive after add-on charges.

Access to the apartment should be controlled

The manager may hold physical keys, access cards, and digital codes. The agreement should provide for:

• a key register;
• no copying without a record;
• a list of authorized employees;
• tenant notification rules;
• emergency entry;
• contractor access;
• lost-key procedures;
• electronic-lock code control;
• return on termination;
• responsibility for security incidents.

The owner should preserve an emergency-access solution and should not depend on a single employee. If keys are given to cooperating agents, the appointed manager should remain responsible within the contract and applicable law.

Data and correspondence belong in the property file

The history of a tenancy often remains in an employee's personal messaging account. If that employee leaves, the owner may lose tenant contacts, repair photographs, notices, and renewal dates.

A company email account, owner portal, or shared folder with export capability is safer.

The agreement should treat records and communications as part of the manager's deliverables. The owner does not need unnecessary personal data, but must receive enough information to continue the lease and protect the property.

Use of other agents should be regulated

A manager may cooperate with outside agents to find a tenant. The agreement should address:

• whether owner approval is required;
• who pays the additional commission;
• whether the outside agent may sign documents;
• who is responsible for statements made to the tenant;
• who may hold keys;
• how personal data is protected;
• whether the outside agent may receive money.

The most dangerous structure is a chain in which the owner knows one company, the tenant pays another, and a third holds the keys.

The primary manager should remain accountable for participants it appoints, within the agreement and law.

Termination should include an operational handover

Cambodia's Civil Code allows mandate relationships to be terminated, although termination at an inappropriate time may create liability in some circumstances.

The management agreement should specify:

• normal notice period;
• grounds for immediate termination;
• unpaid or accrued fees;
• the date authority ends;
• tenant notification;
• final report;
• transfer of rent and deposit money;
• return of keys;
• transfer of documents;
• open repair orders;
• tax records;
• contractor warranties;
• changes to access codes.

Immediate termination may be appropriate after fraud, missing funds, gross negligence, an unauthorized lease, refusal to report, or loss of a required authorization.

Even after a serious dispute, the tenant must have a clear method for paying rent. Handover obligations should survive termination.

Handover package when the manager changes

The owner or incoming manager should receive, within a fixed period:

• the original lease;
• amendments;
• tenant contact details;
• payment ledger;
• security deposit;
• prepaid rent;
• keys and cards;
• inventory;
• move-in photographs;
• service-charge information;
• repair history;
• warranties;
• tax receipts;
• insurance claims;
• notices;
• utility-account information;
• access codes;
• information about current disputes.

The final account should distinguish the manager's own claims from money held for the owner or tenant. A manager should not retain the tenant's deposit as leverage for a disputed management fee without a clear lawful basis.

Example of a transparent cash flow

A tenant pays USD 800 for the month and a USD 1,600 security deposit.

The manager receives the rent into a client account, deducts a USD 80 management fee and USD 40 for an approved repair, attaches the invoice, and transfers USD 680 to the owner.

The security deposit remains a separate USD 1,600 ledger balance and is not included in monthly income.

At move-out, the owner approves a USD 150 deduction after reviewing the condition report. The tenant receives USD 1,450.

The numbers are illustrative. The principle is that rent, owner money, management commission, and tenant deposits should never become one undifferentiated balance.

Due diligence before appointing a manager

Before signing, the owner should review:

• company registration;
• directors and authorized signatory;
• permissions required for the actual services offered;
• office and staffing;
• client-money procedures;
• sample monthly report;
• sample lease;
• professional liability insurance;
• references;
• conflict disclosures;
• contractor-selection rules;
• data-storage systems;
• termination and handover procedures.

It should not be assumed that one universal Cambodian “property management license” automatically covers every service. Brokerage, short-term accommodation, tax representation, and condominium management may involve different requirements.

Conclusion

A property management agreement is a control document, not merely a fee schedule.

It should separate common-property management from management of the individual apartment, define representative authority precisely, and set limits on decisions made without owner approval.

The main risk areas are tenant selection, rent reduction, money held in the manager's account, the security deposit, related-party repairs, missing invoices, and poor handover after termination.

Cambodia's Civil Code expects a mandatary to manage carefully, report, and transfer money and property received for the owner. Those general duties do not replace practical operating rules.

A strong agreement answers three essential questions:

1. What may the manager sign?
2. How can the owner verify the money?
3. How does the apartment return to the owner's full control when the relationship ends?

This article is for general information only and is not legal, tax, or property-management advice. Authority, client-money flows, leases, deposits, repairs, and termination arrangements should be adapted to the apartment and ownership structure with a qualified Cambodian lawyer.

Sources

1. JICA Legal and Judicial Development Project — Civil Code of Cambodia. Provisions considered include representation, conflicts of interest, mandate, duty of care, reporting, transfer of money, and termination.
2. JICA Legal and Judicial Development Project — Civil Code of Cambodia. Provisions considered include leases, repairs, custody, and security for obligations.
3. General Department of Taxation of Cambodia — Prakas No. 169 on Tax on Income from Immovable Property Rental dated 20 March 2024, listed as effective.
4. RICS — real estate agency and management principles effective from 1 January 2025. Used as international guidance on transparency, conflicts, competence, and client service, not as mandatory Cambodian law.
5. RICS — client-money handling rules and guidance. Used as comparative guidance on segregation, reconciliation, and control, not as evidence of a special Cambodian client-money regime.

Frequently asked

Can a property manager sign a lease on the owner's behalf?

Yes, if the owner grants that authority expressly in the management agreement or a separate power of attorney. Without clear authority, the manager should not change material terms in the owner's name.

Where should the tenant's security deposit be held?

The agreement should identify the holder, account, permitted deductions, reporting procedure, and refund process. A general promise to keep the money safely is not enough.

Can the manager arrange repairs without approval?

A well-drafted agreement normally gives the manager a limit for routine minor work and separate emergency authority. More expensive work should require written approval, quotations, and supporting documents.

Can the owner change managers at any time?

Agency relationships may generally be terminated, but the contract may require notice and settlement of accrued fees. The owner should receive keys, money, transaction records, the lease file, and all operational documents.

How is an apartment manager different from the condominium management company?

The condominium management body looks after common property. The apartment manager acts for one owner by finding tenants, collecting payments, coordinating repairs inside the unit, and reporting to the owner.