Which document serves as a formal agreement between the property owner and the property manager?

The management agreement is the correct document that serves as a formal agreement between the property owner and the property manager. This document outlines the responsibilities, duties, and authority granted to the property manager by the owner. Typically, it includes specific terms such as the scope of management services, fees, duration of the agreement, and the obligations of both parties.

By defining the relationship and setting clear expectations, the management agreement plays a crucial role in the operational efficiency of managing a property. In contrast, other documents like the lease agreement primarily govern the relationship between the landlord and tenants, while a service contract generally pertains to specific services provided, rather than the management of the entire property. A rental contract similarly focuses on the tenant's lease of a particular unit rather than the management of the property itself. Therefore, the management agreement is essential for clarifying the terms under which the property manager will operate on behalf of the owner.