Property Management

A Utah property manager's management agreement should specify the owner's reserve fund requirements because:

AThe Division of Real Estate sets minimum reserve amounts
BReserves fund unexpected repairs and replacements, and the manager needs authority to draw from the reserve✓ Correct
CReserves are required for all rentals by the Utah HOA Act
DLenders require reserves before approving a property management agreement

Explanation

A reserve fund provides funds for unexpected major repairs (roof, HVAC). The management agreement should establish the reserve amount, the manager's authority to draw from it, and replenishment requirements.

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