Which document is essential for documenting the property manager’s authority?

The Property Management Agreement is the essential document for outlining and formalizing the authority of the property manager. This agreement serves as a contract between the property owner and the property manager, detailing the specific responsibilities and powers granted to the manager. It typically includes information such as the scope of management services, the duration of the agreement, payment terms, and any limitations on authority. By clearly defining these aspects, the Property Management Agreement legitimizes the property manager’s role and ensures that they can act on behalf of the property owner in managing the property effectively.

While other documents, such as a Tenant Lease Agreement, might establish terms between the landlord and tenants, they do not specifically address the authority of the property manager. Similarly, Service Contracts pertain to agreements with third-party vendors for specific services but do not define managerial authority. A Property Inspection Report is merely a record of the condition of the property but does not confer any authority or clarify responsibilities. Therefore, the Property Management Agreement is crucial for establishing the legal basis for the property manager's actions and decisions within their role.