What does a property management agreement typically define?

A property management agreement fundamentally sets the framework for the relationship between the property owner and the property manager. This document outlines responsibilities, expectations, and the scope of services to be provided by the property manager, ensuring both parties understand their obligations and rights. It typically includes details such as management fees, authority levels for decision-making, and the duration of the agreement, which helps to foster a clear and effective working relationship.

By defining this working relationship, the agreement clarifies how the property manager will act on behalf of the owner, including aspects related to tenant management, financial reporting, and property maintenance. This clarity is essential for smooth operations and accountability, establishing the foundation necessary for effective property management.

In contrast, while rental prices, security deposits, maintenance duties of tenants, and marketing strategies are important aspects of property management, they are typically details that might be included in the overall management strategy or in separate communications but are secondary to the overarching relationship defined by the property management agreement.