A property management agreement governs the relationship between a property owner and the company or individual managing it day to day — collecting rent, handling maintenance, screening tenants. It's worth reading closely, since it hands over real authority over your property.
Scope of authority needs to be explicit
The agreement should specify exactly what the manager can decide independently — routine maintenance up to a dollar threshold, tenant screening criteria, lease terms — versus what requires the owner's approval first.
Fee structure and what it actually covers
Management fees are often a percentage of rent collected, but leasing fees, maintenance markups, and renewal fees can add substantially to the real cost — understanding the complete fee structure, not just the headline percentage, matters before signing.
Termination terms protect both sides
A clear notice period and process for ending the agreement — without being locked into an unreasonably long term or facing a steep early termination fee — is one of the most important provisions to review before signing, not after you're unhappy with the management.
Liability and insurance provisions
The agreement should clarify who's responsible for what if something goes wrong — a tenant injury, a maintenance failure, a security deposit dispute — and confirm the manager carries appropriate insurance rather than leaving the owner exposed.