Property Management

An Iowa rental property owner hires a property manager to lease and manage apartments. This creates what type of legal relationship?

APrincipal-agent relationship✓ Correct
BEmployer-independent contractor relationship
CTenant-landlord relationship
DFiduciary-beneficiary relationship

Explanation

The property owner is the principal and the property manager is the agent. This principal-agent relationship is defined in the property management agreement and gives the manager authority to act on the owner's behalf.

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