The purpose of a property management agreement is to outline the responsibilities and authority of a property manager. This agreement serves as a formal contract between the property owner (landlord) and the property management company or agent, detailing the scope of services to be provided. It typically includes information such as the duration of the agreement, management fees, maintenance responsibilities, tenant management, and specific authority given to the property manager regarding leasing, financial decisions, and property upkeep.
By clearly defining these roles and expectations, both parties can work together more effectively, ensuring that the property is managed according to the owner’s specifications while also complying with relevant laws and regulations. This understanding is essential for maintaining a successful property management relationship and ensuring that the property is well-run, ultimately benefiting both the landlord and tenants.
While setting rental rates, establishing temporary occupancy, and collecting rental payments are aspects of property management, these activities are usually subsets of the broader responsibilities defined within the property management agreement rather than its primary purpose.