What is the purpose of a management agreement?

A management agreement primarily serves to establish the duties and responsibilities of the property manager in relation to the property they are overseeing. This document outlines the authority granted to the property manager, including tasks such as leasing units, collecting rent, maintaining the property, and ensuring compliance with relevant laws and regulations.

The clarity provided by this agreement ensures that both the property owner and the property manager understand their respective roles, which helps in maintaining a professional relationship and ensuring the property is managed effectively. By defining the parameters of the property manager's role, it allows for efficient operation and can ultimately lead to better outcomes for both the owner and tenants.

In contrast, while other options address important aspects of property management, they do not capture the core functionality of a management agreement. Repair responsibilities, tenant obligations, and lease agreements are typically covered in different legal documents and are not the primary focus of a management agreement.