What should a management agreement do?

A management agreement serves as a vital document that establishes the relationship between the property owner and the management company. By detailing the services to be provided for a set fee, it clarifies what the management company is responsible for, ensuring that both parties have a mutual understanding of expectations. This is essential for effective property management, as it outlines the specific tasks, duties, and obligations that the management company will fulfill in exchange for the agreed-upon fees.

Having these details in the agreement helps prevent misunderstandings and disputes later on, as both parties are aware of the scope of work and associated costs right from the beginning. It fosters transparency, builds trust, and allows the property owner to hold the management company accountable for their performance in accordance with the terms laid out in the agreement.

While other aspects, such as universal standards, job descriptions, and inspection schedules, can be important, they do not encompass the core purpose of the management agreement, which is to define the service relationship and financial terms clearly.