administrative understanding allowing individual managers to control specified organizational activities for a particular period of time. Management agreements can also exist between companies where an intercompany agreement is developed to manage certain activities cooperatively.
a contract between the owner of property and someone who agrees to manage it. Fees are generally 2-6% of the rental income.
Example: Abel has a management agreement with Baker for a 200- unit apartment complex. The contract provides that Baker will receive 5% of the rental income, and he will perform all duties concerning leasing, operating, and managing the property. He will maintain a separate bank checking account for receipts and disbursements, provide monthly accounting statements, and manage the property with competence.
