Describe the purpose of a management agreement.

The purpose of a management agreement is fundamentally to establish clear expectations and guidelines between the property owner and the property management company. It serves as a formal contract that outlines the various responsibilities and the scope of authority granted to the management company in overseeing the property. This includes duties such as marketing the property, managing tenant relations, handling financial operations, and ensuring compliance with regulations.

This clarity is essential as it sets the framework within which the property management company operates, thereby allowing both parties to understand their roles and commitments. In this way, the management agreement supports effective communication and accountability, which are critical for the successful operation of the property.

In contrast, other options involve specific elements of property management but do not capture the overarching purpose of the management agreement. For instance, detailing tenant obligations, listing maintenance tasks, or specifying rental increases are all important aspects of property management, but they are typically addressed in separate documents or sections of the overall management plan rather than being the primary focus of the management agreement itself.