Who signs the Lease? Property Manager or Owner

Question

Hi everyone,

Qq- I’ve been working with a freelance PM. We have a tenant in process- my property manager is telling me that he uses Turbo Tax and the lease he generates only requires his signature and the tenants. And that I’d be “out of the mix” Is this customary? What are your thoughts?

Bill B. · Answer

After some consultation with PM. I set the rent amount for each length of lease and the PM does everything else.

Ps. Prior to about 15 years ago the PM used to call with a rundown of the applicant’s credit, income and any relevant facts and I would approve or deny. I think that went away to avoid any claims of discrimination. But I still wasn’t involved in lease signings. I just received a digital copy after we received the deposit and first month’s rent.

Julie Huffman · Answer

It depends on what kind of contract and level of authorization/authority you have given your PM. The lease should have your name on it to identify you as the owner of the property, but your PM can typically sign on your behalf as the agent. As long as you agree with the lease terms in place and the PM has confirmed that with you, they can sign.

Chris Seveney · Answer

@Rhia Mckissic

In my  PM agreement I allow the PM to sign the lease but it still requires my approval

Melanie Thomas · Answer

Hey Rhia, this is standard procedure. The lease should always be directly between the tenant and the owner. The property management agreement should grant the PM company the authority to sign on behalf of the owner, and you should receive a copy for your records. Good luck & happy investing!

Spencer Abeyta · Answer

It is very common for a PM to sign on behalf of the owner. We do this at my company and it allows the owner of the property separation from the tenant.

If you hire a PM company you should trust their competency in qualifying tenants and signing a lease on your behalf.

Bob S. · Answer

PM,

Bryan Montross · Answer

Hopefully you already got the answer you were looking for, but from my experience, it can be either you or the PM. It just matters what authorities you have given the PM in your agreement with them. I don't know if States have different laws, but that is something you would have to ask an attorney. Because the lease is a standard lease with just the names, dates and amounts changed I usually just let my PM handle it and give me a copy. We have already agreed well prior to that what amount I want, and what my criteria for a renter is, so it is just less work for me.

Michael Smythe · Answer

@Rhia Mckissic

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 per deed

Agent = someone legally representing the owner

Property Manager = Agent

Who signs the Lease? Property Manager or Owner

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