Washington State Real Estate Practice Exam 2026 – Complete Preparation Guide

The requirement to review a property management agreement at least annually, or as specified in the agreement, is crucial for ensuring that both the property owner and the property management company remain aligned on their services, fees, and responsibilities. This annual review allows for adjustments based on changes in property conditions, market trends, or legal regulations that may impact the management of the property.

Reviewing the agreement annually helps in identifying any areas that may require updates or modifications to better serve the property owner’s objectives or to improve the overall management strategy. Additionally, certain agreements may explicitly state different review periods, which also emphasizes the importance of adhering to the terms set forth in the contract.

A monthly or biannual review may be overly burdensome and unnecessary for most property management scenarios, while conducting reviews every five years or only when changes occur could lead to missed opportunities for improvement and adaptation in management practices. Hence, the requirement for at least an annual review effectively balances the need for oversight with practical management efficiency.