What is the minimum term that should be set in a management contract for a large property?

The minimum term typically set in a management contract for a large property is one year. Opting for a one-year term provides a sufficient duration for the property management team to establish their operations, assess the property's performance, and implement necessary strategies for improvement. This timeframe allows both the property owner and the manager to build a solid working relationship, understand the nuances of the property, and evaluate the effectiveness of management practices without the pressures of frequent renewals or terminations.

A shorter term, such as six months, may not offer enough time to fully gauge the success of the management activities and could lead to instability. Longer terms, like five years, while potentially beneficial for long-term planning, may reduce the flexibility needed if circumstances change. An indefinite term may leave both parties vulnerable if either side is not satisfied with the arrangement, as it can create uncertainty regarding the management's effectiveness and responsiveness. Thus, a one-year term strikes a balance between stability and adaptability.