FACTS: A landlord entered into an Arizona REALTORS® Residential Lease Agreement with a tenant.  Two months later, the landlord realized she travels too much and wouldn’t be available to perform her duties as a landlord. She therefore decided to hire a property management company.

The landlord gave proper notice to the tenant that payments would now be collected by a property management company.  The tenant refused to acknowledge the property management company and stated he would only make payments to the landlord, because that’s who he contracted with.

ISSUE: Can a tenant refuse to make payments to a property management company at the direction of the landlord?

ANSWER: No.

DISCUSSION:         

Arizona courts have recognized an agency relationship between a broker and a client in a real estate transaction since the early 1900s. See Jenkins v. Irvin, 20 Ariz. 164, 178 P. 33 (1919).  Therefore, the landlord has the ability to hire a property manager as her agent.

The landlord gave proper notice pursuant to page 6 of the lease.  The lease has not been affected.  Therefore, the tenant should now submit payment to the property manager as the Landlord has directed.

Note: The Arizona REALTORS® has a Notice to Tenant of New Management form available to notify the tenant of the new property management company.