What is one of the primary functions of a property management agreement?

One of the primary functions of a property management agreement is to specify the duties of the property management firm. This agreement clearly delineates the responsibilities and services that the property management company will provide, such as rent collection, property maintenance, handling tenant relations, and ensuring compliance with local laws and regulations. By defining these duties, the property management agreement serves as a crucial document that sets expectations for both the property owner and the management team, ensuring that all parties are aligned on the management of the property.

While the other choices may relate to aspects of property management, they do not directly address the primary function of the agreement itself. For instance, outlining the owner’s responsibilities is important but falls under the broader scope of the duties of the management firm. Determining lease terms and establishing rental rates are also critical operational aspects, yet they are specific elements that may be included in the larger context of property management but do not encapsulate the essential role of the management agreement as a whole. Thus, specifying the duties of the property management firm stands as the primary and foundational aspect of the property management agreement.