In brief
Romania has no uniform regulation of property management companies: there is no professional licensing, no minimum standard and no regulator to turn to. A property owner living in Israel therefore relies almost entirely on the management agreement, and the agreement must define the tasks, response times in numbers, handling of a tenant who does not pay, approval of expenses, transparency and an exit route.
Key takeaways
- 1Romania has no professional licensing, minimum standard or regulator for property management companies, so the written agreement is the main protection.
- 2Full management includes five tasks: marketing and tenants, rent collection, maintenance, authorities and bills, and financial reporting.
- 3Response times are written in hours: for example 24 hours for an emergency fault, 48 for an ordinary fault and 72 for a general request.
- 4Above a spending cap set in advance, every expense requires written approval, and an original invoice is attached to every expense.
- 5A property manager who is also a broker has a built-in conflict of interest in choosing the tenant.
When the property is in Romania and you are in Israel, someone else opens the door for the tenant, hears about the leaking pipe and decides whether to call a technician. The question “who do we call when something breaks?” needs a written answer before it comes up in the middle of the night.
This guide deals with choosing a property manager and the agreement with them, from the legal and contractual angle. We wrote about the tax on rental income in Romania and the licensing of short-term tourist rentals in separate guides.
Is property management in Romania a regulated field?
No. Romania has no uniform regulation of property management companies. There is no professional licensing, no minimum service standard and no regulator to which a complaint can be submitted. Anyone may set up a company and offer the service.
The implication for an owner abroad is clear: two companies at the same price may give completely different service, and there is no outside body to decide between you and the manager. What is not written in the agreement is almost impossible to enforce. The agreement is therefore not a form that comes with the purchase; it is your only means of oversight.
Full management includes five tasks: marketing and tenants, rent collection, maintenance, authorities and bills, and financial reporting.
What should a property manager actually do?
Full management includes five tasks. A company that offers only some of them provides “partial management”, and the gaps remain with you.
| Task | What it includes | How to measure it |
|---|---|---|
| Marketing and tenants | Listing on local platforms (such as OLX, Imobiliare.ro and Storia), photography, screening applicants and financial background checks | How many days pass between the end of a lease and a new tenant |
| Rent collection | Monthly collection, handling late payments, enforcement proceedings when needed | The money arrives in your account on a fixed date |
| Maintenance and repairs | Coordinating tradespeople, approving expenses and supervising the work | Response time to a fault |
| Authorities and bills | Local tax, water, electricity, owners' association charges, renewing insurance, filing and paying the tax on the rent | Whether bills reach you late or not at all |
| Financial reporting | A monthly or quarterly report with income, expenses and net | Whether the report arrives on its own or has to be requested |
An agreement under which the manager visits the property once a year and reports only when there is a fault may miss cumulative damage until the tenant leaves. Set a visit frequency and a condition report with photographs in the agreement.
Which clauses must appear in the management agreement and the SLA?
A management agreement without a service level annex (SLA) defines what the manager may do, but not what the manager must do and when. These eight clauses close the gap:
| Clause | What to write | Red flag |
|---|---|---|
| Response times | A number of hours for each type of request, for example 24 for an emergency (water, electricity, gas), 48 for an ordinary fault, 72 for a general request | “As soon as possible” or “within a reasonable time” |
| A tenant who does not pay | The day the first notice is sent, when the second is sent and when a lawyer is engaged | No timetable |
| Financial reporting | A fixed date in the month on which the report arrives | “Around the middle of the month” |
| Contact person | Name, phone, email and availability hours of one fixed person | A general call centre, someone different each time |
| Approval of expenses | A cap in euro for a single expense; above it, prior approval in writing | Unlimited spending authority |
| Transparency | An original invoice for every expense | The company's “regular” supplier with no supplier invoice |
| Failure to meet targets | A defined sanction, for example a reduction in the management fee when the property is vacant beyond an agreed period | The company refuses any measurable commitment |
| Exit | Advance notice (30 to 60 days is customary), handover of all documents and keys, with no termination fee | An exit penalty or a long automatic renewal |
It is worth adding three clauses that are not on the list but come up in every agreement: whether the manager may sign leases on your behalf and on what terms, where the tenant's deposit is held and how it is transferred at the end, and what is handed to you when the tenant changes, including a handover report and photographs.
How should the agreement define the handling of a tenant who does not pay?
Here time is real money. Every month in which a tenant does not pay, you continue to bear the mortgage, the insurance and the local taxes. The agreement should therefore set stages with dates: a first notice on a specific day after the payment date, a second notice, and a date on which the file passes to a lawyer.
The manager does not replace a lawyer. Collection and eviction proceedings in Romania are conducted by locally licensed lawyers, and the agreement should state who chooses the lawyer and who approves engaging them.
Which warning signs should you identify before signing?
- A manager who is also a broker. A built-in conflict of interest: when looking for a tenant, they may prefer whoever pays them a higher commission rather than the tenant who suits you.
- An unusually cheap offer. A price far below the market usually indicates partial service, hidden costs, or both. Compare offers against the full list of tasks, not against the bottom line.
- Related suppliers. A tradesperson connected to the company, with no supplier invoice, is a place where a hidden commission can be concealed.
- No experience with foreign owners. An owner abroad needs availability, transparency and reporting in a language they read, English or Hebrew. Check this before signing.
- Refusal to put numbers in writing. A company willing to promise “excellent service” but not response times and reporting dates is signalling what you will get.
What remains your responsibility even when there is a manager?
The property, the contracts and the filings remain yours even when someone else carries them out. Ask for a copy of every filing with the tax authority and confirmation of every payment of local tax, insurance and bills. If the property is let to tourists, additional licensing and reporting obligations apply, and the agreement should state who is responsible for each of them.
Once a year it is worth going through the reports against the bank statements and against the agreement: did the rent arrive on time, was every expense above the cap approved, and was the property inspected at the agreed frequency.
What should you do before signing?
A management agreement is often signed together with the purchase, when attention is elsewhere. That is exactly the moment to stop: ask for the agreement and the SLA annex in writing, compare at least two offers against the same list of tasks, and correct the missing clauses before signing. We go through the management agreement and the leases derived from it with Israeli property owners, together with licensed lawyers and notaries in Romania, who carry out the actions under local law.
This article is general information, current as of October 2026, and is not legal or tax advice for a specific case. The response times and notice periods in the article are customary examples and are not set by law.
Frequently asked questions
Do property management companies in Romania need a licence?
No. Romania has no uniform regulation of the field: no professional licensing, no minimum standard and no regulator for complaints. The owner's main protection is therefore a detailed management agreement with an SLA annex.
What must appear in the service level agreement with the property manager?
Response times in numbers, a timetable for handling a tenant who does not pay, a fixed date for the financial report, a fixed contact person, a spending cap with written approval above it, original invoices, a sanction for failing to meet targets and clear exit terms.
Why be wary of a property manager who is also a broker?
Because they have their own interest in choosing the tenant. They may prefer a tenant who pays them a higher commission over a tenant who suits you better.
What is a reasonable response time to a fault in a let property?
It is customary to write 24 hours for an emergency fault such as water, electricity or gas, 48 hours for an ordinary fault and 72 hours for a general request. What matters is that the numbers are written in the agreement and not phrased as “as soon as possible”.
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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.