leasing
property management agreement
A property management agreement is a written contract between an owner and a property manager that creates an agency relationship, usually making the manager a general agent. It spells out the manager's authority and duties, such as leasing, rent collection, maintenance, and reporting, as well as compensation (often a percentage of collected rent plus leasing fees), the term, and handling of trust funds. Many states require a license to manage property for others.
- Exam tip
- Property managers are typically general agents. Fees are usually based on collected gross rents, not potential rents.
- Example
- An owner of a 20-unit building hires a manager for 6% of collected rents; with $30,000 collected in a month, the fee is $1,800.
Related terms & state variants
Sources
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Last verified: 2026-10-23