What does a property management agreement typically outline?

A property management agreement is a key document that establishes the relationship between a property owner and the property manager. It specifically outlines the duties and compensation of the property manager, detailing the responsibilities they will undertake in managing the property. This includes daily operations, maintenance responsibilities, financial management, rent collection, and tenant relations. Additionally, the agreement often specifies how the property manager will be compensated—whether through a flat fee, percentage of rents collected, or another structure—thus ensuring both parties have a clear understanding of the managerial services and expectations involved.

While the duration of a lease, the rights of property owners, and the features of the property are important elements within property management, they do not primarily define the property management agreement itself. Instead, these aspects would typically be addressed in the lease agreements or in the context of property descriptions. The primary focus of the property management agreement is to solidify the operational framework and financial aspects of the management relationship, making the role of the property manager clear and defined.