What is a property management agreement?

A property management agreement serves as a legal contract that explicitly details the management services to be provided by the property manager on behalf of the property owner. This document is crucial because it establishes the relationship between the property owner and the property manager, outlining responsibilities, actions, fees, and terms of service.

Key components of a property management agreement can include property maintenance obligations, tenant screening and leasing processes, rent collection procedures, and the duration of the agreement. By clearly defining these expectations, the agreement helps to ensure that both parties understand their rights and obligations, reducing the risk of disputes and misunderstandings in the management of the property.

This formalized approach contrasts with a verbal agreement, which lacks legal backing and can lead to ambiguity and miscommunication. While tenant responsibilities may be covered within a property management agreement, such guidelines and specifics about maintenance are not the primary focus of this type of document. Instead, it is centered around the overall management of the property itself.