Direct answer
What does Management agreement mean?
A contract authorizing a property manager to perform stated services for an owner.
Exam cue: Read the scope, authority, compensation, term, reporting, insurance and termination provisions.
What does it look like in a question?
New York example
An owner authorizes a manager to collect rent, coordinate repairs and provide monthly reports within spending limits.
Common exam trap
What should you not confuse it with?
A management agreement does not give the manager unlimited authority.
Related property management terms
Capital improvementA significant addition or replacement that extends useful life, increases value or adapts property to a new use, depending on the accounting and tax context.EvictionA legal process used to recover possession from a tenant under applicable grounds and court procedures.Operating budgetA plan of expected property income and operating expenses for a future period.Preventive maintenancePlanned inspection and service intended to reduce breakdowns, hazards and more costly repairs.Reserve fundMoney set aside for future major repairs, replacements, emergencies or other planned property needs.Security depositMoney held to secure a tenant's performance under a lease and governed by the applicable lease and law.
Sources used1 reference with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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