A written management agreement is negotiated between the owner and the person or firm that will manage the property.  States may have specific laws regarding such agreements, but generally, the following must be included to establish the scope of the agent’s authority:

Ø       Identification of the parties

Ø       Legal description of the property

Ø       Statement of owner’s purpose

Ø       Duties and responsibilities of the manager

Ø       Responsibilities of the owner

Ø       Rate and schedule of compensation

Ø       Accounting and report requirements

Ø       Starting date, termination date and provisions for renewal options

Ø       Amount and method of determining the minimum security deposit to be collected from the tenants for each unit managed

Ø       Procedure for returning or retaining the security deposit

Ø       Provision setting forth the conditions under which the manager is authorized to pay expenses of the property being managed

Ø       Signatures of parties