Question

Good business practices indicate that a property manager should have a written contract with the property owner whose property he or she will be managing. The agreement should clearly outline the responsibilities of both parties including the:

a) Duration of the contract
b) Property's market value
c) Manager's personal liabilities
d) Taxation policies

Answer 1

A property management contract should clearly define the duration, manager's responsibilities, financial arrangements and taxation policies. The property's market value is important but not typically part of this contract, while manager's personal liabilities should also be defined.

Step-by-step explanation:

Good business practices suggest that a property manager and the property owner enter into a formal contract which clearly defines the responsibilities of both parties. An effective management agreement will include:

• The duration of the contract, specifying how long the management services will be rendered.
• Details about the manager's responsibilities, including tasks and obligations they will undertake.
• Outline the terms of compensation and financial arrangements, such as management fees.
• Taxation policies regarding the property, as well as any other legal compliance issues.

While the property's market value is an important figure, it is not typically a term outlined in a management contract but may be referenced regarding rental prices or insurance coverage. Also, a management contract should define the limits of the manager's personal liabilities to protect both the manager and the property owner.