Can a Property Manager Legally Sign a Lease for the Owner?

Managing rental properties involves many tasks, from marketing to maintenance to legal paperwork.

One common question property owners have is: Can a property manager legally sign a lease for the owner? 

The answer depends on the terms of the property management agreement, and it’s important to understand the risks, limitations, and legalities.

What Does a Property Manager Do?

Property managers serve as the owner’s representative, handling many responsibilities that make rental property ownership more hands-off. This often includes:

• Marketing vacant units
• Screening tenants
• Preparing and signing lease agreements
• Coordinating maintenance
• Managing rent collection and lease enforcement

To learn more, read What Does a Property Manager Do?

Can a Property Manager Sign a Lease?

Yes — if authorized in writing, a property manager can sign a lease on behalf of the owner.

This authorization typically happens in the property management agreement, where the owner grants permission for the manager to act as their agent in lease-related matters.

Key lease responsibilities property managers may handle include:

• Signing new leases
• Processing lease renewals
• Accepting notices to vacate
• Enforcing lease terms

Without written authority, however, any lease signed by a manager could be challenged or deemed invalid.

It's also important to consider your state’s licensing requirements. In California, for example, property managers must be licensed real estate agents or operate under a licensed broker to legally negotiate and sign lease agreements. Other states may impose similar or stricter rules, particularly when lease terms extend beyond one year or involve subsidized housing programs.

What Should Be in the Property Management Agreement?

The property management agreement should clearly outline what the manager is authorized to do. Specifically, it should state whether the manager is allowed to sign lease agreements and under what conditions. A thorough agreement includes:

• The scope of responsibilities
• Authorization to execute lease agreements
• Owner approval requirements (if any)
• Communication protocols

See more in Property Manager Do’s and Don’ts

What Happens if a Lease is Signed Without Proper Authorization?

If a property manager signs a lease without being explicitly authorized:

• The lease may be legally unenforceable
• The owner could be exposed to legal liability
• The tenant may challenge the terms of the agreement
• Disputes could arise over rent, deposits, or termination terms

To avoid these outcomes, it’s essential to define lease-signing authority in the management contract.

How to Protect Yourself as a Property Owner

Here are best practices for giving your property manager lease-signing authority safely:

1. Specify authority in writing within the property management agreement

2. Retain final approval rights for certain tenants or lease terms

3. Ensure your manager is licensed and knowledgeable about local rental laws

4. Work with a reputable company that prioritizes transparency and documentation

If you’re unsure how lease signing should be handled, read Can a Property Manager Enter a Home Without Permission?

Work With a California Property Management Company You Can Trust

At Hignell Property Management, we ensure every action we take is clearly documented, legally compliant, and aligned with your goals as a property owner. We serve Chico, Redding, Sacramento and surrounding areas with full-service property management tailored to your needs.

We believe lease signing is more than just paperwork—it’s the start of a successful tenant relationship that protects your investment and upholds your reputation.

Have questions about lease signing or legal responsibilities? Contact us today to speak to one of our property management experts.