What is the primary purpose of a property management agreement?

The primary purpose of a property management agreement is to outline the responsibilities and obligations of the property manager and the property owner. This agreement serves as a crucial document that defines the scope of the property management services to be provided, ensuring both parties have a clear understanding of their roles. It typically includes details such as property maintenance, tenant relations, lease enforcement, financial management, and compliance with local laws.

By establishing these responsibilities, the agreement helps prevent misunderstandings and disputes between the owner and the property manager. It also provides a framework for accountability and performance standards, ensuring that property management practices align with the owner's expectations and legal requirements. The clarity provided by the agreement is essential for smooth operations and effective management of the rental property.

While setting rental prices, advertising the property, or determining lease lengths are important aspects of property management, they fall under the broader responsibilities outlined within the property management agreement rather than being the main purpose of the agreement itself.