What is the main purpose of a property management agreement?

The main purpose of a property management agreement is to outline the responsibilities of a property management company. This legally binding document details the scope of services that the management company will provide, such as marketing the property, screening potential tenants, handling maintenance and repairs, collecting rent, and ensuring compliance with applicable laws and regulations.

By clearly delineating these responsibilities, the agreement facilitates a mutual understanding between the property owner and the management company, ensuring that both parties are on the same page regarding expectations and duties. This structure is crucial for the effective management of the property and for maintaining a professional relationship between the owner and the management firm.

While specifying rental amounts, establishing tenant rights, and defining property amenities are important factors related to property management, they fall under the broader responsibilities listed within the property management agreement. The agreement primarily focuses on the management company's duties and how they will execute their role in managing the property efficiently.