What is the main purpose of a property management agreement?

A property management agreement serves as a crucial document that outlines the relationship between the property owner and the property manager. It details the responsibilities of each party, ensuring that both the property owner and the manager have a clear understanding of their roles. Additionally, this agreement specifies the compensation structure for the property manager, which might include management fees and other expenses related to managing the property.

This comprehensive framework helps establish expectations, fosters a smooth working relationship, and can prevent disputes that arise from misunderstandings about each party’s obligations. By defining the scope of work and the financial arrangements, the property management agreement becomes an essential tool in the effective management of the property.

The other options do not capture the full scope and purpose of the agreement. While it's true that liabilities might be discussed or that certain aspects of tenant obligations could be mentioned, these are not the primary focus or the main purposes of the property management agreement. Instead, the essence of the agreement lies in laying out the broader arrangements between the property owner and manager.