What must property managers disclose regarding liabilities to their clients?

The requirement for property managers to disclose all liabilities, costs, and financial obligations is foundational to fostering transparency and trust in the property management relationship. This disclosure equips clients with a comprehensive understanding of their financial exposure associated with the property. It includes not only routine costs but also any arising liabilities that could impact the profitability and functionality of the property.

By providing this information, property managers enable clients to make informed decisions about their investments and effectively manage their financial risks. It also ensures that clients are aware of what financial responsibilities they may expect in the future, allowing them to plan accordingly.

The other options, while relevant to different aspects of property management, do not encompass the broad requirement for full disclosure of financial responsibilities. Potential conflicts of interest, for instance, are crucial for ethical governance but do not provide the financial clarity that liabilities and costs do. Market value estimates and legal risks, although important, focus on different facets of property management that do not cover the entire spectrum of financial disclosure necessary for the client's understanding of liabilities.