The Importance of a Property Management Agreement

One of the most critical documents in property management is the property management agreement. It establishes the legal relationship between the property manager and the owner. It outlines essential clauses that should be included in the agreement, such as owner reserves, authority to manage the property, and holding security deposits in a trust account. The agreement should also define the scope of services provided, clarify the responsibilities and liabilities of both parties, and address important aspects like lease renewals, hiring vendors, and owner's cooperation. Regularly reviewing and updating the agreement is crucial for the success and protection of the property management business.