What must be included in a management agreement?

A management agreement is a formal contract outlining the responsibilities and expectations between a property owner and a management company. One key aspect of any management agreement is the clear listing of all fees and charges associated with the management of the property. This transparency helps to avoid misunderstandings and disputes down the line, ensuring that both parties are aware of the financial obligations involved.

Including a detailed list of fees and charges is essential for both legal compliance and good business practice. It provides clarity on what the management company will be charging for their services, such as management fees, maintenance charges, and any additional costs that may arise during the management period. This specificity helps property owners budget effectively and allows both parties to align their expectations regarding financial commitments.

While a management agreement typically should be in writing to be enforceable and is often subject to review by regulatory bodies, these factors are not universally applicable across all agreements. The necessity of a written agreement and any regulatory approval can vary based on specific circumstances or jurisdictional requirements. However, the requirement to clearly state all fees and charges is a foundational element of a management agreement that fosters transparency and accountability.