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What is a property manager's first responsibility to the owner? To realize the maximum profit on the property that is consistent with the owner's instructions.
Before entering into a management agreement, what should the property manager do? The manager should submit a management proposal to the property owner. What is necessary for the contract to be enforceable? It must be in writing.
The management agreement creates a general agency relationship between an owner and the property manager. Unlike real estate brokers' commissions, property management fees may be standardized by local associations.
The purpose of a property management agreement is to create a legal document that is enforceable by the law that outlines the rights and obligations of the landlord and property management company.
Property management contracts usually last as long as the property is being rented. Standard leases range anywhere between 3-24 months for residential properties. However, after fixed-term tenancies, it's normal for tenants to go on month-to-month agreements, which can go on for many more months and years.