Just as tenants sometimes move in and move out, sometimes property owners need to transition to a new property management company. As a landlord, you may find that—for any number of reasons—you need to say goodbye to your old property managers and welcome a new property management team.
Unfortunately, that transition isn’t always as smooth as it could be. That’s especially the case if your former property managers are less than professional, or don’t fully cooperate with the transition.
Our goal is always to make switching property management companies as seamless and stress-free as possible. With that in mind, we have created a list of recommendations for when the time comes to transition your rental property to a new property management company.
How to Transition Your Rental Property to a New Property Management Company
Be professional with your old managers
As you get ready to switch from one property management company to another, try to maintain as cordial and professional a relationship as possible with your old company. This will help increase the chances of a smooth, cooperative transition.
Be straightforward about your reasons for discontinuing their service. That includes voicing any issues or concerns you may have had in a direct but courteous way. Do your best to keep emotions out of the equation, even if you are deeply dissatisfied with your property management company.
Understand your contracts
Before you officially enter into a partnership with a new team, carefully reread the contract you signed with your old property management company. Look specifically for the termination clause.
It’s important to know what the process will be, understand your responsibilities, and anticipate any fees you may owe as a result of terminating your agreement early. Likewise, be sure to read and fully understand the contracts you are about to sign with a new property management company.
Inform your tenants
Transitioning to a new property management company will present some changes for your tenants as well. Inform your tenants as soon as you’ve signed on with your new company, and let them know that they may reach out with any questions they may have.
Informing your tenants will reduce a lot of confusion. Otherwise, they may wonder why someone else is suddenly collecting their rent and answering maintenance calls. Share your new managers’ contact information with all your tenants (and vice versa) to enable open communication between all parties.
Transfer all relevant documents
Your old property management company has a lot of information that your new company will need in order to do their job well. A lot of documentation and information has to change hands for a smooth transition, and your new managers should be able to inform you of everything they need.
Some of the things you’ll need to hand over include lease documents, applications, tenant email addresses and phone numbers, maintenance request history, move-in inspections and financial statements including payment history and balance due for tenants. Security deposits and keys will also need to change hands.
Time it right
Transitioning from one property management company to another can be more challenging if it happens at an inopportune time. Try to choose a time that will work as best as possible for your tenants, your property managers, and for yourself.
Try to avoid changing property management companies around rent collection time at the beginning of the month or during the holiday season. It’s also best not to do it in the midst of an eviction or major renovation project.
Contact us today to learn more about changing property management companies. Our team is dedicated to facilitating a smooth transition to our property management team focused squarely on the needs of your rental business.