Property manager asking to be an authorized signer

[Alexi Schreier]

Hi all,

I’m about to close on my first out of state rental and have been in contact with a property management company to manage it.

For accounting purposes, the PM is asking me to open a business account at a local bank and add the managing broker of the PM company as an authorized signer to the account.

This would mean that broker would have the authority to withdraw and deposit funds freely from the account. The account would hold the security deposits and rental income every month and the manager would withdraw from the account to pay for any expenses.

Is this common practice? I’ve never worked with this company before and am nervous letting a practically complete stranger have so much power over my funds.

Any advice is welcome. Thanks!