What is a management agreement?

A management agreement is fundamentally a contract that outlines the scope of authority and responsibilities of a property manager in relation to the management of a property. This document delineates the specific tasks the property manager is authorized to perform, which can include collecting rent, handling maintenance requests, leasing vacancies, and ensuring compliance with local laws and regulations. By clearly defining these responsibilities, both the property owner and the property manager have a mutual understanding of what is expected, which helps facilitate effective property management.

In contrast, other options do not capture the essence of a management agreement. An arrangement between a seller and a buyer pertains to a transaction rather than the ongoing management of property. A legal commitment between tenants suggests a lease agreement rather than a management arrangement. Lastly, a financial plan for property investments focuses on broader financial strategies rather than the operational and management tasks of a specific property.