What is a property management agreement?

A property management agreement is fundamentally a contract that delineates the responsibilities and duties of a property manager in relation to the management of a property. This agreement explicitly outlines the scope of the property manager's role, which may include collecting rent, handling maintenance and repairs, marketing the property, screening tenants, and adhering to local laws and regulations. By defining these responsibilities clearly, the agreement ensures both the property owner and the property manager understand their rights and obligations, fostering a professional relationship.

Understanding that this agreement serves as a framework for managing the operational aspects of a rental property helps clarify why it is considered essential in the real estate industry. Additionally, it provides legal protections and defines the terms of engagement, which are critical for successful property management.