Who bears responsibility for injuries to a tenant resulting from the condition of a property subject to a residential lease? Is it the landlord, the managing real estate agent, or both? Many agents wonder whether a landlord can discharge all responsibility for property maintenance onto them — and what this means for managing agent liability.
This article outlines your legal responsibilities as a managing agent, the risks you may face, and the steps you can take to minimise exposure.
Legal Responsibilities and Managing Agent Liability
As a managing agent in Australia, you hold a duty to inspect a property under management and notify the landlord of obvious defects. A landlord can delegate their duty of care to you, which may result in managing agent liability if a tenant is injured due to a known or foreseeable hazard.
This means your firm — or you personally — may be held liable if you fail to identify or report issues that contribute to tenant injury.
Case Example: Yeung v Santosa Realty Co Pty Ltd [2020] VSCA 7
In Yeung v Santosa Realty Co Pty Ltd [2020] VSCA 7, the Supreme Court of Victoria found that the managing agent was required to fully indemnify the landlord after a tenant slipped on worn, slippery, wet stairs. The landlord had delegated his duty of care to the agent, and the agent failed to address the hazard.
This case highlights how managing agent liability can arise when a landlord’s duty of care is transferred to the agent through contract or conduct.
Reducing Your Risk as a Managing Agent
Understanding your obligations under your management agreement is essential. Reducing your exposure involves:
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Maintaining accurate inspection records
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Reporting defects promptly
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Ensuring clear communication between tenants and landlords
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Reviewing the scope of your inspections
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Keeping maintenance and repair documentation up to date
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Regularly reviewing your commercial insurance policies
Risk management is not optional — it is a core part of protecting your business.
Insurance Solutions That Support Managing Agent Liability Protection
At Barrack Broking, we help real estate firms develop tailored insurance programs that may include:
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Professional Indemnity
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Cyber Liability
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Public Liability
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Landlords Liability
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Directors & Officers Liability
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Office Property and Contents
These policies can help protect your business from claims arising from negligence, tenant injury, or administrative oversight.
Common Question: What’s the Difference Between Professional Indemnity and Public Liability?
Professional Indemnity (PI) PI insurance helps protect professionals who provide advice or services. It covers claims arising from negligence, errors, or omissions in the delivery of professional services.
Public and Products Liability (PPL) PPL insurance helps protect businesses from third‑party claims involving property damage or bodily injury occurring on business premises or during operations.
Both are important, but they protect against different types of risk — and both can be relevant to managing agent liability.
We’re Here to Help
If you’d like to explore your business‑specific risks, strengthen your business continuity planning, or review your commercial insurance program, contact us at Barrack Broking. We can help you protect the future of your real estate business.
