What is the primary function of a property management agreement?

The primary function of a property management agreement is to specify the obligations of the property manager. This document serves as a legally binding contract between the property owner and the property manager, clearly delineating the roles, responsibilities, and authority the property manager has in managing the property. This includes aspects such as leasing, rent collection, maintenance coordination, tenant communication, and adherence to legal obligations.

Clearly defining the obligations helps to ensure that both parties have a mutual understanding of expectations, which facilitates smooth operations and helps prevent disputes. By setting forth these responsibilities, the agreement provides a framework within which the property manager can effectively perform their duties, thereby protecting the interests of the property owner and maintaining the property's value.

The other options, while related to property management, do not encapsulate the overarching purpose of the agreement itself. For example, detailing the property structure relates more to property description than management responsibilities, establishing rental rates involves market analysis and does not directly pertain to management duties, and outlining maintenance responsibilities is just one aspect of the broader obligations articulated in the agreement.