When a property manager is hired to assist an owner, which parties are in a fiduciary relationship?

In the scenario described, the correct answer is that the owner and property manager are in a fiduciary relationship. This relationship exists because a fiduciary duty is created when one party, the owner, entrusts another party, the property manager, with responsibilities related to the management of their property. The property manager is expected to act in the best interests of the owner, managing the property diligently, making informed decisions regarding leasing, maintenance, and financial matters.

This fiduciary relationship emphasizes trust, loyalty, and full disclosure, meaning the property manager must prioritize the owner's interests above their own or any other parties. This contrasts with the other relationships mentioned. The owner and tenant's relationship is typically contractual rather than fiduciary; the tenant is primarily responsible for paying rent and adhering to lease terms. The relationship between the tenant and property manager usually involves the property manager acting as an agent of the owner to manage the property, and it does not involve a fiduciary duty to the tenant. Lastly, the relationship between two tenants does not establish a fiduciary obligation at all since it is more about shared occupancy of the rental property rather than a position of trust or responsibility concerning property management.