Which document is essential for establishing the relationship between a property owner and a property manager?

The property management agreement is crucial for defining the relationship between a property owner and a property manager because it serves as a formal contract that outlines the roles, responsibilities, and expectations of both parties. This document details the scope of the property manager's authority, including tasks such as marketing, tenant screening, maintenance, rent collection, and accounting responsibilities. It also specifies the duration of the management arrangement and the fees involved, which can help prevent disputes down the line.

In contrast, a lease agreement primarily pertains to the relationship between a landlord and a tenant, outlining the terms under which the tenant will occupy the property. Tenancy at will refers to a less formal arrangement between a landlord and tenant that is not based on a formal lease and can be terminated at any time, making it irrelevant to the property management relationship. A security deposit receipt is simply a record of payment made by a tenant, which does not address the contractual relationship between a property owner and a manager. The property management agreement is therefore the foundational document that establishes and governs the relationship and is vital for ensuring effective property management.