Property Management

What is a 'property management agreement' and what key terms does it include in Illinois?

AA tenant lease with property management services included
BA contract between a property owner and management company defining services, fees, authority, term, and responsibilities✓ Correct
CA standard form required by IDFPR for all managed properties
DAn agreement between a managing broker and their broker employees

Explanation

A property management agreement is the contract between a property owner and management company that defines: scope of services (leasing, maintenance, accounting), management fees and leasing commissions, authority to sign leases and execute contracts, maintenance spending limits, reporting requirements, insurance requirements, and contract term and termination provisions. This agreement must be in writing and is required for IDFPR compliance when a licensed broker manages property for others.

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