What does a property management agreement typically define?

A property management agreement is a crucial document that outlines the working relationship between the property owner and the property manager. It serves as a contract that delineates the responsibilities and duties of both parties, ensuring that there is a clear understanding of their respective roles. This includes aspects such as the manager's authority to make decisions on behalf of the owner, the scope of services provided (like maintenance, tenant relations, and rent collection), and the duration of the agreement.

Understanding this relationship is vital for successful property management, as it helps avoid potential conflicts and clarifies expectations from both sides. By defining these responsibilities, both the owner and the manager can work together more effectively, which ultimately contributes to the successful operation of the property.