What is the primary purpose of a property management agreement?

The primary purpose of a property management agreement is to establish management responsibilities and fees. Such an agreement outlines the relationship between the property owner and the property manager, detailing the specific duties of the property manager, such as maintenance, tenant relations, rent collection, and compliance with laws. Additionally, it specifies the compensation structure for the manager's services, which might include management fees, maintenance costs, and any additional expenses that may be incurred.

By clearly delineating these responsibilities and financial arrangements, both the owner and the manager can set expectations and create a framework for accountability. This ensures that the property is managed effectively while the owner remains informed about how their property is being handled and what fees are associated with the management services.

The other options while relevant to real estate processes do not capture the central role of a property management agreement. Selling the property, securing financing, and determining market value are separate activities that fall outside the domain of property management agreements, which focus specifically on operational management rather than sale or valuation of the property.