What is the purpose of a property management agreement?

The purpose of a property management agreement primarily revolves around clarifying the responsibilities and expectations between the property owner and the property manager. It defines the scope of the property manager’s duties, including tasks such as tenant screening, rent collection, maintenance responsibilities, and compliance with applicable laws. This comprehensive delineation helps prevent misunderstandings and sets a clear framework for the management relationship.

While outlining powers of attorney, proposing management strategies, and creating a service contract can all be components of property management, they do not encapsulate the main objective of the property management agreement itself as effectively as detailing the specific duties and responsibilities. Establishing clear guidelines on the roles of both the property manager and the owner is essential for the successful management of the property and overall satisfaction for both parties involved.