What is the primary purpose of a property management agreement?

The primary purpose of a property management agreement is to outline the responsibilities and fees for managing a property. This agreement serves as a crucial document between the property owner and the property management company, detailing the specific tasks that the property manager will handle, such as tenant placement, rent collection, maintenance, and property upkeep. It also clearly states the fees associated with these services, ensuring both parties understand the financial expectations and obligations involved in the management of the property.

This agreement is essential for establishing a professional relationship where both parties can refer to the documented responsibilities and terms. It helps protect the interests of the property owner by ensuring that the property is managed in a professional and efficient manner, while also giving the property manager a clear framework within which to operate. The importance of this agreement in outlining the terms of management services cannot be overstated, as it establishes accountability and helps prevent disputes between the owner and the manager.