How do Property Managment companies work exactly?

[Jeremy Cardenales]

Hello everyone i am under contract on my second property and will be using a property management company for this one. I am reviewing the contract and i am kind of confused on how it works. It is saying agent shall be covered in insurance policies , does this mean i have to set up an LLC? also i would have to set up a special account for them to be able to collect the rent etc? is this typical of management companies to do? i am new to this as the first one i manage myself . Any help or input is much appreciated thank you !!