Lease Agreement - In the name of Owner or Management Co.?

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Lease Agreement - In the name of Owner or Management Co.?

Shaun R.
Member since 2019 路 16 posts 路 1 vote

My partners and I own a few properties and have recently created a separate Management Co. to manage our properties.  Moving forward, do I have the Management Co., be the named party that enters into the agreement with the Tenant?  Or do I still list the Owner as the party entering into the contract with the Tenant?  

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Drew SygitBusiness Member
Property Manager 路 Royal Oak, MI 路 Member since 2012 路 13k+ posts 路 9k+ votes
3y

@Shaun R.

Most states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.

Landlord = Lord of the Land = Owner

Agent = someone legally representing the owner

Property Manager = Agent

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  • Nicole Heasley Beitenman
    Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    3y

    Disclaimer: I'm not an attorney. 

    I don't think it matters if you're all equal owners of both the property and the company. Perhaps list the agreement between all 3? State that the owner is the landlord and entitled to the rental income and the management company will be the one performing property management.

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  • Shaun R.
    OP
    Member since 2019 路 16 posts 路 1 vote
    3y
    Perhaps this is more of a legal question.  I definitely would like for my Management Co. to be the one collecting rents and conducting the day to day management.  This entity (the Management Co) will also be the one most likely interacting with Tenants on a regular basis as well.  Should it then be the named party on the Lease?  Or is the Owner required to be on the Lease?  
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  • Drew SygitBusiness Member
    Property Manager 路 Royal Oak, MI 路 Member since 2012 路 13k+ posts 路 9k+ votes
    3y

    @Shaun R.

    Most states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.

    Landlord = Lord of the Land = Owner

    Agent = someone legally representing the owner

    Property Manager = Agent

    Please send us any feedback via email, as we do not use the DM feature here.
    Also, if you like our response, please don鈥檛 be shy about giving us a vote馃槉

    [email protected]248-209-6824
    Logical Property Management4.9462 Reviews
    WebsiteView Page
    1Reply
  • Shaun R.
    OP
    Member since 2019 路 16 posts 路 1 vote
    3y

    What do you typically see on Leases in your experience?  The Owner listed as the contracting party?  Then a clause or section of the Lease which delegates/appoints the management company as the authorized agent for the Owner?  

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
    3y
    Quote from @Shaun R.:

    My partners and I own a few properties and have recently created a separate Management Co. to manage our properties.  Moving forward, do I have the Management Co., be the named party that enters into the agreement with the Tenant?  Or do I still list the Owner as the party entering into the contract with the Tenant?  


     As Drew stated, most states require the Landlord to be named on the contract. My contract says (paraphrasing), "This agreement is between John Jones (Owner) and Jackie Bee (Tenant). American West Realty (Agent) is acting on behalf of the Owner."

    The DIY Landlord Book4.7244 Reviews
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  • Shaun R.
    OP
    Member since 2019 路 16 posts 路 1 vote
    3y

    Understood.  I appreciate all the replies and help.  It is always helpful to get an idea of what others in the industry are seeing and experiencing.  Thank you.

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  • Eliott Elias
    Investor 路 Austin, TX 路 Member since 2021 路 9k+ posts 路 5k+ votes
    3y

    Have your company as managing the property and your names on signatures. 

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