What should a management agreement typically include?

A management agreement is a critical document in property management that outlines the responsibilities and expectations between the property owner and the manager. The inclusion of a description of the property is essential because it provides a clear understanding of the asset being managed. This description typically includes the property’s address, type (residential, commercial, etc.), size, and any relevant features. A detailed property description ensures that both parties have a mutual understanding of what is being managed, which aids in establishing the scope of the manager's responsibilities and allows for tailored management strategies.

While a property value assessment, the owner’s tax obligations, and a market analysis might be relevant in different contexts, they are not standard components of a management agreement. The primary purpose of the management agreement is to delineate the operational aspects of property management rather than financial assessments or tax matters, which may be handled separately by financial professionals or real estate appraisers.