What is the purpose of "property management agreements"?

The purpose of property management agreements is to define the relationship and responsibilities between a property owner and a property manager. These agreements are essential because they clarify the duties each party has in relation to the management of the property. This includes aspects such as maintaining the property, handling tenant issues, collecting rents, and executing leases.

By clearly articulating these responsibilities, the agreement helps to prevent misunderstandings and legal disputes that can arise if expectations are not aligned. It establishes a formal framework for communication and decision-making, which is crucial for the successful management of real estate assets.

Other options, while related to property management, do not accurately capture the primary focus of property management agreements. For instance, establishing rental prices is often part of a property manager's duties but does not encompass the full scope of the agreement. Similarly, outlining responsibilities between property owners and tenants pertains more to lease agreements than property management agreements. Setting guidelines for insurance coverage, while important, is not the primary purpose of these agreements either. Thus, defining the relationship and responsibilities between the owner and the manager stands out as the core function of property management agreements.