What is a property management agreement?

A property management agreement is a formal contract that clearly outlines the specific management services to be provided by a property management firm on behalf of the property owner. This document details the responsibilities and expectations of both parties, including tasks such as maintaining the property, collecting rent, handling tenant inquiries, and ensuring that the property complies with relevant laws and regulations.

The importance of having a formalized agreement cannot be overstated, as it serves to protect both the property owner and the management firm. It outlines critical aspects such as management fees, duration of the agreement, and the authority granted to the management company. By having a well-defined contract in place, both parties can minimize misunderstandings and establish a clear framework for their business relationship.