What is the purpose of a property management agreement?

The primary purpose of a property management agreement is to clearly outline the responsibilities and compensation for property management services. This agreement serves as a contract between the property owner and the property management company, detailing the scope of work that the management company will undertake, which may include tasks such as tenant placement, rent collection, property maintenance, and overall operational management of the property. Additionally, it specifies the fees that the property owner must pay for these services, ensuring that both parties have a mutual understanding of their roles and financial commitments.

The other options, while related to property management, do not encompass the overall purpose of a property management agreement. Negotiating rental prices with tenants is typically one of the responsibilities outlined within the agreement, but the agreement itself is broader in scope. Assessing property taxes is usually the responsibility of the property owner and local tax authorities, not something typically covered by a property management agreement. Managing property marketing strategies may be part of the management services, but again, the agreement itself is focused on defining the comprehensive responsibilities and compensation structure rather than solely on marketing.