What is the primary purpose of a property management agreement?

The primary purpose of a property management agreement is to outline the duties and responsibilities of the property manager. This agreement serves as a formal contract that establishes what the property manager is expected to do, such as managing tenant relations, performing maintenance, collecting rents, and ensuring compliance with property laws and regulations. It sets clear expectations for both the property owner and the manager, thus facilitating effective property management.

While establishing guidelines for marketing properties is an important function, it is only one aspect of the broader responsibilities defined in the agreement. The guarantee of rental income and the limiting of the owner's liability could be outcomes influenced by effective management, but they are not primary purposes of the management contract itself. Instead, those aspects may be addressed in other parts of the overall property management strategy or separate legal agreements. Therefore, focusing on the detailed roles and obligations makes it clear that the central intent of the property management agreement is to delineate the operational framework within which the property manager will operate.