Property ManagementIntermediateCalifornia Exam

What is a 'management agreement' in property management?

AA lease between the landlord and tenant, as typically required in a residential lease, under standard California property management practice, consistent with landlord-tenant law
BA contract between the property owner and property manager specifying the manager's duties, authority, compensation, and duration of the management relationshipCorrect
CA maintenance contract with repair vendors, consistent with California landlord-tenant law, under standard California property management practice, consistent with landlord-tenant law
DA listing agreement for renting individual units, per standard property management industry practice, under standard California property management practice, consistent with landlord-tenant law

Why A contract between the property owner and property manager specifying the manager's duties, authority, compensation, and duration of the management relationship Is Correct

Answer B: A contract between the property owner and property manager specifying the manager's duties, authority, compensation, and duration of the management relationship

A management agreement is the employment contract between the property owner and the property management company/broker. It defines the scope of the manager's authority, responsibilities (leasing, maintenance, accounting), compensation (typically a percentage of gross rents), and the term of the agreement.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

Key Property Management Terms in This Question

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