Does a Property Management Agreement Survive the Owner’s Death in Georgia?

A property management agreement is a legal agency relationship, and under Georgia law, an agent's authority ends automatically the moment the principal dies, unless the agreement is coupled with an interest. If your rental sits in your personal name, that can mean your manager's authority disappears the same day you do.

By Melissa Breyer, Esq. 8 min read

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Most apartment and rental owners never think about what kind of legal relationship a property management agreement actually is. It feels like a service contract, the same as hiring a landscaper or a plumber. Under the law, it is something more specific: an agency relationship, with the manager acting as your agent.

That distinction matters enormously the day you die. Agency law has a rule that most owners have never heard of: a principal’s death automatically ends the agent’s authority, unless the agency is coupled with an interest. A property management agreement, without more, does not meet that exception.

This article explains what that means in practice, why a funded trust changes the outcome entirely, and how to make sure your management relationship survives you.

A Property Management Agreement Is an Agency Relationship

When you hire a management company to collect rent, coordinate repairs, and handle tenants, you are not just buying a service. You are appointing an agent to act on your behalf, with authority to sign, negotiate, and make decisions in your name.

That authority comes from you personally, the same way a power of attorney does. It is not a standalone right the manager holds on their own.

Why Georgia Law Ends That Agreement the Moment You Die

O.C.G.A. § 10-6B-10 confirms the general rule: an agent’s authority ends when the principal dies, unless the agency is coupled with an interest. A property management agreement, held in the owner’s personal name, does not meet that exception.

This means the manager’s authority to sign leases, approve repairs, or handle tenant issues can end automatically, the moment you die, regardless of anything the management contract itself says. A “successors and assigns” clause in the agreement does not override this rule, because the underlying relationship is agency, not just a service contract.

The Good-Faith Gap: What Happens Before the Manager Finds Out

There is a narrow practical cushion. A manager who keeps acting without knowledge of your death may still be protected, and third parties dealing with them in good faith may be too.

But that protection depends entirely on nobody finding out. The moment the manager learns you have died, that good-faith window closes, and every action they take afterward happens with no clear legal authority behind it.

Why a Funded Trust Changes Everything

If your rental property sits in a funded revocable trust, the outcome is completely different. The trust, not you personally, is the party to the management agreement. When you die, the trust does not die. Your successor trustee simply steps into your role under the same agreement, with no interruption and no gap in authority.

This is the same authority-first principle behind how a successor trustee takes over rental properties in general, applied specifically to the contract that keeps your management company working.

What Happens If the Property Sits in an LLC Instead

An LLC adds a layer of protection, since the entity itself does not die. But an LLC does not automatically solve who can act for it. If the person who signed the management agreement was also the LLC’s sole manager, their death can still leave nobody with clear authority to renew, amend, or enforce that contract until the LLC’s own governance question is resolved.

How to Keep the Management Relationship From Breaking

None of this has to become a real problem. It requires making sure the right party, not just the right person, holds the agreement.

1

Title the property in a funded revocable trust

This makes the trust the party to the management agreement, so your successor trustee steps in with zero gap in authority.

2

Confirm the management agreement names the trust, not just you

If the contract still lists your personal name, ask the management company to update it to reflect the trust as owner.

3

Leave clear instructions for your successor trustee

Note who the management company is, how to reach them, and where the agreement is kept, so a successor is not starting from zero.

4

Confirm LLC governance separately if one is involved

If an LLC holds the property, make sure someone has clear authority to act for the entity, not just for you personally.

Done right, your manager never has to wonder whether their authority just disappeared. The trust simply continues, the same as it did the day before.

Automatic What happens to a personal-name management agreement at death Georgia agency law revokes an agent's authority the moment the principal dies, unless the agency is coupled with an interest.
Good Faith Only Protection for a manager who has not learned of the death A manager who keeps acting without knowledge may still be protected, but that protection disappears the moment they find out.
Zero Gap What a funded trust does to this problem Because the trust, not the individual, is the party to the agreement, a successor trustee steps in without any interruption.

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Melissa Breyer

Melissa Breyer

Georgia Estate Planning Attorney

Melissa Breyer is a Georgia estate planning attorney who works exclusively on trust-based estate planning and LLC formation. She personally designs and drafts every plan at The Hive Law after the initial call. Every plan is built from scratch for your specific family, your specific assets, and your specific wishes.

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Frequently Asked Questions

Often yes, if the property is in the owner’s personal name. Under Georgia agency law, an agent’s authority ends when the principal dies, unless the agency is coupled with an interest, which a standard management agreement typically is not.

No. Because the underlying relationship is agency, not just a service contract, that boilerplate language does not override the legal rule that death ends the agent’s authority.

They may be protected temporarily under a good-faith exception. That protection ends the moment they learn of the death, after which their actions have no clear legal authority behind them.

Yes. The trust, not the individual, becomes the party to the management agreement. When the owner dies, the trust continues, and the successor trustee steps into the same role with no gap.

The LLC itself does not die, but if the person who signed the management agreement was also the LLC’s sole manager, their death can still leave nobody with clear authority until the LLC’s own governance is resolved.

Title the property in a funded revocable trust, confirm the management agreement reflects the trust as owner, and leave clear instructions for the successor trustee about the management relationship.

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