Oregon 30-Hour Real Estate Law Practice Test

Which of the following is likely to be included in a property management agreement?

1. Market analysis report

2. Lease negotiations

3. Management fees and responsibilities

4. Tenant security deposit amounts

The correct answer is: Management fees and responsibilities

A property management agreement establishes the terms and conditions under which a property manager operates on behalf of a property owner. One of the key components of such an agreement is the detailed outline of management fees and responsibilities. This section typically includes the percentage of rent that will be charged as a fee, any additional costs that may arise, and the specific duties the property manager is expected to perform. These responsibilities can encompass tasks such as rent collection, property maintenance, tenant relations, and compliance with local laws and regulations. Including management fees and responsibilities in the agreement ensures that both parties have a clear understanding of the financial and operational expectations. This clarity minimizes the risk of disputes and helps to establish a professional relationship between the property owner and the property manager. While market analysis reports, lease negotiations, and tenant security deposit amounts are important aspects of property management, they do not typically form the core parts of a property management agreement. Instead, they might be addressed separately as needed, but they do not inherently dictate the ongoing financial and operational duties under the agreement.