What is a primary purpose of a property management agreement?

The primary purpose of a property management agreement is to define the responsibilities of property management. This comprehensive document establishes the terms of engagement between a property owner and a property manager, detailing the specific duties the manager is expected to undertake. These responsibilities typically include managing tenant relations, collecting rent, handling maintenance and repairs, ensuring compliance with local regulations, and maintaining the overall financial health of the property.

By clearly outlining these responsibilities, the agreement helps to prevent misunderstandings and provides a framework within which the property management can operate effectively. This clarity is essential for ensuring that both parties have aligned expectations regarding the management of the property.

The other options relate to aspects that are not typically encapsulated within a property management agreement. For example, sale prices and property ownership transfer pertain to real estate transactions, while securing financing is a function outside the scope of property management activities. Thus, these do not serve the primary purpose of a property management agreement.