What is the primary purpose of a property management agreement?

The primary purpose of a property management agreement is to outline the responsibilities and expectations between the property owner and the property manager. This agreement serves as a foundational document that clearly specifies the scope of work to be performed by the property manager, including tasks such as collecting rent, handling maintenance issues, and managing tenant relations.

By defining these responsibilities, the property management agreement helps to prevent misunderstandings and ensures that both parties are on the same page regarding their roles. This clarity is essential for maintaining a successful working relationship and for ensuring that the property is managed effectively.

While establishing rental rates, creating a marketing plan, and detailing tenant screening procedures are important aspects of property management, they are typically components covered within the framework of the property management agreement rather than its primary purpose. The agreement itself is focused on the broader relationship and operational guidelines between the owner and the manager.