Draft a leasing authority agreement for your agency services

Usually at the points where expectations diverge. A landlord may assume the agent can market, negotiate, collect information or communicate with applicants in a certain way, while the agency believes its role is narrower or broader. A written leasing authority agreement helps set those boundaries in advance by recording the services authorised, any approval steps, and when fees or commission become payable. That can be particularly important for letting and property management businesses where the factual working arrangement, not just the label on the document, affects the legal position.

It will often cover the scope of the agency appointment, what leasing services are authorised, any limits on negotiations or commitments, fee and commission triggers, owner responsibilities, instructions about marketing or applicant handling, termination rights and record-keeping. For many businesses, data handling also matters because the agreement may need to reflect how tenant and property information is collected, used and shared during the leasing process. The right drafting depends on your operating model, especially if your business combines introductions, negotiations and ongoing management support under related but separate arrangements.

A lot turns on how your team actually works. For example, the drafting may differ depending on whether you only introduce prospective tenants, negotiate heads of terms, arrange viewings, collect holding information, or coordinate third parties. It can also matter how landlord instructions are given and recorded, and whether your business handles personal information centrally or through different systems and staff. The contract should reflect the practical arrangement, not just a generic precedent or one-sided checklist, so a generic form may miss the points that create the most friction later.

Sometimes a standard form is enough for a simple and consistent service model, but many agencies need more than that. A generic template may not properly reflect your commission structure, the point at which authority starts, who can approve key decisions, or what happens if a landlord changes instructions mid-process. It may also be too vague about information handling if your team collects and shares applicant details in a particular way. Where your agency has a defined workflow or offers more than basic introductions, tailored wording is usually the safer option.

That depends largely on how settled your commercial position is. If you already know the services you want authorised, how fees are triggered and what limits should apply to your team, the drafting process is usually more straightforward. Timing can stretch where the business model is still being refined or where existing documents need to be reconciled. Once the draft is prepared, the next step is usually to review practical points such as authority limits, commission wording and termination mechanics. If the matter turns into a live dispute or wider property advice exercise, that would need separate support.

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