Professionals Cairns Beaches 
Managing your own property can be a daunting task with a myriad of responsibilities and potential challenges. Not only is directly handling your rental units time-consuming, but it can also be unprofitable.
That’s where property management companies come to the rescue, offering expertise and support to landlords. But how far do their services extend? Can a property manager sign a lease for an owner?
From legal documents to handling finances and even re-letting your property, continue reading to find out more about property managers’ responsibilities.
Can a Property Manager Sign a Lease for an Owner?
Yes, property managers can sign tenancy agreements on behalf of landlords. However, the extent of their authority depends on the terms agreed upon in their contract with the property owner.
Landlords typically sign a managing authority contract when hiring professional property managers.
This agreement grants exclusive rights to the real estate agent to find prospective tenants and manage the rental property. Without proper authorisation, signing on behalf of the owner is considered a contract violation, which may result in legal conflicts.
How Do Property Managers Sign Leases for an Owner?
When it comes to signing tenancy agreements on behalf of property owners, property agents follow specific procedures. The steps vary depending on whether they’re dealing with an independent landlord or a corporate entity.
For Independent Landlords
Property managers can sign leases for individual landlords, but it’s crucial to make it clear that they are signing as representatives. They do so by using per procurationem (p.p.) before the signature. That highlights their role as agents acting on the landlord’s behalf.
For Corporate Landlords
When dealing with corporate landlords, property managers must obtain a resolution signed by the company’s members.
This resolution grants the agents the authority to sign leases on the company’s behalf, adding an extra layer of authorisation to the process.
This formal step ensures that the tenancy agreement is legally sound and complies with property management laws.
What Are the Legal Documents Handled by Property Managers?
Since real estate agents manage several aspects of rental properties, they’re required to handle various agreements.
These documents ensure that the relationship between the managers and owners is well-defined and legally protected.
Here are the primary legal documents property managers encounter:
- General Tenancy Agreement: A legally binding contract between a tenant and a property manager or the owner. They establish different lease terms and conditions.
- Property appointment form: Such contracts outline the agent’s scope of work. This list of tasks includes writing leases, choosing tenants, re-letting, making repairs, collecting unpaid rent, and negotiating security deposits.
- Power of attorney: This legal document authorises managers to act on behalf of property owners. That grants them the authority to sign legal documents and make important decisions related to property management.
That said, the management company may need to handle other paperwork, depending on local regulations. These include permits, licences, and inspections.
What Services Does a Property Agent Provide?
Real estate management companies handle several tasks on behalf of their clients. These tasks depend on what the owners want, but they usually involve the following:
- Receive and Forward Rent
Handling weekly or monthly rents is one of the main tasks of property management companies.
Rental binding contracts specify when and how rent is due, and property managers ensure that tenants adhere to these terms. They collect rent on the owner’s behalf and forward it.
Additionally, the agents track and address unpaid rent issues, ensuring a steady rental income stream. This service helps property owners avoid financial hassles and legal conflicts.
- Pay Bills on Your Behalf
When entrusting your rental units to a professional property management partner, you can rely on them to handle various financial matters, saving you time and effort!
For instance, you can request the agent to manage municipal rates and utility bills, such as water, gas, and electricity. They can also handle owners’ corporation fees for you.
Additionally, consult with the agents about rental provider insurance. That safeguards your interests against potential issues like renter-inflicted damage.
The best part is that you don’t have to worry about transferring the money. They can deduct these expenses from the rental income!
It’s worth mentioning that these additional services must be outlined in the contract between the company and the property owner.
- Manage Repairs and Maintenance
Aside from handling monthly rent and bills, property management companies can arrange property inspections and manage repairs and maintenance for your residential properties.
By including these services in your agreement, you grant the company the authority to arrange urgent repairs, typically up to a specified amount. Keep in mind that you should detail the maximum expenses in your contract.
This service ensures the property remains in perfect condition, keeping tenants and owners satisfied.
Of course, you need to share your contact information with the resident if you prefer not to delegate repair decisions to the agent.
- Re-Letting the Property
Property managers’ tasks go beyond finding potential tenants and managing rentals; they can also assist with re-letting your real estate.
Once a tenant has given notice to vacate, your agent consults with you regarding the re-letting process. This typically involves advertising and showing the property to prospective renters.
However, these showings can only happen if the tenant provides a written agreement to open the house for viewing.
The property manager can’t conduct these visits during the weekends (Sundays) and holidays. They also should keep the showings at a reasonable time, between 8am. and 6pm. unless the tenant agrees otherwise.
Keep in mind that special rules apply when the current renter is a protected person under family violence or personal safety legislation.
Re-letting your rental unit is also the best time to request a new property manager. This allows your new agent to view your investment, re-appraise it in preparation for the renewal, and provide a fresh perspective.
Wrapping Up
So, can a property manager sign a lease for an owner?
Property managers play a crucial role in simplifying the rental process for landlords. They can sign leases on behalf of owners, provided the proper authorisations and contracts are in place.
These professionals handle various legal documents, ensuring a smooth landlord-tenant relationship and compliance with local regulations. Read further here if you’re wondering whether a landlord can be a property manager.
If you’re looking for professional property management services, contact us at Professionals Cairns Beaches today to get started. Our experts help property owners maintain properties effectively, saving you time and money!
