What is a "property management agreement"?

A property management agreement is a contract that clearly defines the responsibilities and obligations of both a property management firm and the property owner. This document is essential for delineating the roles of the management company with regard to leasing, maintenance, financial responsibilities, and tenant relations on behalf of the property owner.

This agreement includes details such as the scope of services provided, fees, duration of the agreement, and any specific terms governing the management of the property. Having a well-defined contract helps establish expectations and protects both parties by ensuring that all responsibilities are understood and agreed upon, facilitating smooth operations in rental property management.

Other options touch on related topics, but they do not accurately define a property management agreement. For example, while leasing documents may be indirectly related, they do not encompass the broader roles and duties outlined in a property management agreement. An agreement between neighbors doesn't encompass the formal obligations expected in property management, and a legal verdict pertains to legal disputes, which is unrelated to property management agreements.