Office 365 disables the use of SMTP Auth by default. This means that things like printers scanners and email clients such as Gmail which don't use modern authentication can't send out to relayed addresses.
The setting is relevant to the entire tenant and can only be changed at the command line.
To do this open powershell on your local machine:
This step only needs done once on your PC
This needs done most times
Enter the tenant username and password. This isn't error checked so it won't tell you if you get it wrong.
Connect-ExchangeOnline -Credential $cred
This will give an error if you got the $cred wrong. If this happens re-run the $cred line and try again.
Will list all of the features of the tennant - look for the line that says:
SmtpClientAuthenticationDisabled : True
This means that you can't relay. You can change the setting using the following command:
Set-TransportConfig -SmtpClientAuthenticationDisabled $false
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