What formalizes the owner-manager relationship in property management?

The owner-manager relationship in property management is formalized through a management agreement. This document establishes the terms and conditions under which a property manager operates on behalf of the property owner. It outlines the responsibilities and authority of the property manager, specifies the duration of the management relationship, and details how compensation will be handled. By having a formal agreement, both parties have a clear understanding of their roles, expectations, and obligations. This protects the interests of both the owner and the manager and helps to facilitate effective property management.

The other options serve different purposes in real estate but do not specifically define the relationship between an owner and a property manager. A property lease pertains to the agreement between a landlord and a tenant, detailing the terms of leasing a property. A broker agreement typically outlines the relationship and responsibilities between a real estate broker and their client, which is distinct from property management. An investment agreement relates to the financial aspects of an investment and does not cover the management of a property.