Which must be included in a property management agreement?

Including expectations for financial reporting in a property management agreement is essential because it establishes clear guidelines regarding how the property manager will handle the financial aspects of the property. This encompasses details such as the frequency of financial reports, what specific information will be included (such as income and expenses, maintenance costs, and any other financial data relevant to the property), and how discrepancies or issues will be addressed. Clear financial expectations protect both the property owner and the manager by providing a basis for accountability and transparency in the financial management of the property.

In contrast, including a manager's social security number (which can raise privacy and security concerns) or the owner's home address (which may not be relevant to the management of the property) is not necessary for the agreement's effectiveness. Similarly, outlining personal preferences of the landlord can be subjective and may lead to misunderstandings, which is why establishing clear and objective expectations around financial reporting is a more appropriate foundational element of the property management agreement.