Normal For Property Manager Sign Tenant Lease But Owner Doesn't?

Question

Hello BPers! I own two rental properties. Both of them are managed by two different PM companies. On both Property Management Agreements (PMA), I appointed them as Agent for the rental, management, and operation of those properties. My name appears as Owner on the PMA. The Agent's name appears on the Residential Lease Agreement (RLA) as "Manager". My name does not appear anywhere on this document. Is this pretty standard among agreements? My name not appearing on the RLA does not negate my legal ownership of those properties. Thanks for the feedback!

Nathan Gesner · Answer

And it depends on state law. I have a management agreement with the owner that authorizes me to act on their behalf. On the lease agreement I name the owner and then state I am acting as his/her agent. Some states may not require the owner to be named at all.

Some property managers sign the lease as the owner's agent. Some managers have the Landlord sign it. There's no right or wrong way although I believe my way is better. ;)

Ali Boone · Answer

There should be two agreements in place, technically. One between you and the PM that establishes and defines your relationship and obligations to each other, and one between the PM and the tenant.

Anthony Hurlburt · Answer

This is standard. The property management company is acting as your agent.

Peter Tverdov · Answer

My company manages primarily student rental properties near Rutgers. The way I do it is my company acts as the Landlord's Agent. The Landlord (i.e. owner) signs the Lease. As someone else said, I think there is more than one way to do it.

John Hodson · Answer

@Nathan G. Thank you for sharing your experience. Your way sounds good to me!

John Hodson · Answer

@Anthony Hurlburt @Ali Boone Thank you both for confirming this. It came up as a question in a recent conversation. Thanks for the support!

Normal For Property Manager Sign Tenant Lease But Owner Doesn't?

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