Management Agent - contract terms

In an agency agreement, what does Authority for the agent to select tennants mean? That the agent can select the tennants without running past me?

So far in all my contracts, its by default no. But in my current one, the default is yes. As an owner, am i better to have it set to yes or no.

 

I would always require them to get my agreement first.
Also make sure they have done all the checks on the tenant so that they don't have history of damaging the places they rent and to make sure they have a job.

 

Thanks yes but is that what "Select Tennants" on the contract is indicating? That they can select a tennant without my approval?

 

"Agent" means acting on your behalf for all matters. An agent authority means they can make a descision regarding your property and you are bound by that descision. Legally an agent can choose tenants without your approval - but they have a fiduciary responsibilty to do the right thing.

The common thing in the industry is to communicate with landlords so the landlords are making the choice not the agents.

 

Thanks, so what impact does "Select Agent Yes" and "Select Agent No" on the contract have on me? Does it matter? Should I change the Yes to No?

 

Really what i'm trying to find out here is whether I should tick Yes or No on this item.

 

Surprisingly little response, i thought this would have been an easy one since most of us here on the property management forum would have signed at least one of these.

I'm still not sure what to tick, whether one is more beneficial than the other from an owners point of view. Appreciate if anyone can provide some input on this. Thank you

 

Tick yes
If you tick no, they would need to send leases and lease extensions to you every time - it holds things up when they can just have authority to do it for you on the spot.

 

Thanks, I'm just curious what authority do I lose as an owner by doing that. Do I still get a say?
Under good circumstances when the agent is acting on my best interest, I wouldn't hesitate to tick yes, but I have in the past as you know had experienced bad agents that just want to do the absolute minimal and not necessarily in my best interest.

 

I think the reason you haven't got many answers is because that's a NSW specific contract and we don't have many NSW PMs on forums. In other states that's a default thing, agents have authority to act on behalf of their clients.

 

Oh is that why?
Thank you for explaining

For your state, what are the disadvantages of selecting yes for the owner? Do they have anything to lose?

 

There's no option. Agents have authority, that's the whole definition of the word agent.

 

sorry a bit slow. I assumed there was the option so didn't quite understand. Now I get what you are trying to say