Property Management

A Minnesota commercial property owner who hires a property management company retains which of the following rights?

AAll rights are transferred to the property manager
BThe right to approve major capital expenditures, review financial statements, and set overall property policy✓ Correct
COnly the right to receive annual income distributions
DOnly the right to sell the property

Explanation

A property owner who hires a property management company delegates day-to-day management but retains ownership rights: approving budgets and capital expenditures, reviewing financial reports, setting rental rate targets, and making major policy decisions. The management agreement should clearly delineate the scope of the manager's authority.

Related Minnesota Property Management Questions

Practice More Minnesota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Minnesota Quiz →