Hi,
As a property manager out here in Ontario I must say that all my leases are between the tenant and the respective property owners. I am but an agent signing the lease on their behalf. Upon tenanting we put together a tenancy package for the owner and mail it out to them including the initial application, lease, inspection report, post-dated cheque, and newly coded keys.
A lot of good points are brought up here. The most important ones are the bank and firing your PM. I would not move forward with this PM in future without a full understanding of what would be done if the tenants do not agree.