How to Switch Property Management Companies
If you own a rental property in Orlando, you know that it requires hard work, a lot of resources, attention and time, and the know-how to make sure everything runs smoothly. These essentials make appointing a property manager a necessity if you are an investor.
When you have a professional by your side, he or she can act on your behalf with the knowledge and expertise that will help to manage the rental property simple and straightforward.
However, there are times when the process is not simple, such as when you know you have made the wrong choice. Some property owners in Orlando become dissatisfied with the manager or the agency they have chosen. Others simply did not do their research, which is why they ended up with the wrong management company.
If the property manager whom you hired does not get you the results you want, you know that it is time for you to look elsewhere. If you are like most landlords or owners, just the thought of switching from one property management company to another will give you a headache. It means that you need to make time scouting around to screen agents.
Doing some research can make you feel like you are climbing up a hill. For this reason, it is no wonder that many landlords, no matter how unhappy they are, put off finding a new company. Unfortunately, they continue to suffer the consequences. What many people do not realize is that finding a new firm can be simple and it can be as easy as giving notice. Additionally, most companies will handle the change from start to finish, so the property owners only need to sign some paperwork.
Tips for a Smooth Property Management Handover
The decision to make the move should not be stressful. If you feel that you are ready to appoint a new manager for your property in Orlando, there are a few recommended things that you should do beforehand. Here are some tips to ensure the property management switch continues with absolutely no hitch:
1. Provide the required notice.
Read the management contract and look for the termination clause. Most contracts have a requirement from 30 to 90 days of prior notice before ending the agreement. Therefore, if you do not provide the required warning, it is possible that you will run the risk of breaching the contract. You do not want to expose yourself to penalties in case of a complaint or a lawsuit. Be on the safe side and follow what is written in the contract.
If you find that there are unexpected cancellation costs hidden in your current contract, feel free to contact us, we may be able to help guide you in your cancellation process with your current property management company.
2. Write the notice.
When you provide the notification, it should be in writing. You can arrange the termination yourself, but it is advised that you send it through certified mail. As much as possible, request a return receipt, so that you have it on record the letter was sent, and the company received it.
3. It should not be personal.
Some landlords complain about being treated poorly or that their whole experience with the property management company was upsetting. If the same thing happened to you, it could be challenging to keep your emotions at bay. Your decision to fire the manager is a business decision. Therefore, your focus should only be on the procedure and look forward to the new stage for your property.
4. Find out if there are hidden costs.
Some agencies charge a fee if the property owner or the landlord decides to terminate the contract early – even with the prior notice. If so, you should check what the agency you worked with is entitled to before providing the notification. This way, you will be prepared for what is to come. You can then pay the manager for all the fees you owe him or her until the effective date of the contract termination.
If the fee is excessive, don't feel like you're trapped. Some of these fees may be illegal. We can walk you through the process should you need help.
5. Inform your tenants.
It is essential that you ensure all your tenants are correctly informed regarding the change in management. As much as possible, talk to them about it before it happens. You can make a formal announcement by sending a written notice to all your tenants. This part is significant so that they know who will manage them soon, including their rental deposits.
6. Allow some time for the fund transfers.
It may take some time for the transfer of all the funds from your account with your current property management company, and it usually depends on the current status of your accounts. You can expect the transfer to be completed in one to two months. It serves as an assurance that the existing agency provided all the payments to the prior invoices before making the balance transfer. However, the rental deposits of your tenants should be set up right at the time you have a new management account.
7. Make sure that you have copies of all the essential paperwork.
Your former agency should provide you with copies of all the documents, including leases, security deposit records, and statement of expenses and income. These papers should be given to you immediately upon the time you terminate the contract.
Explore Your Other Options
One of the most crucial steps to take is to find the property manager you would like to work with. Before you make the switch, have a list of the companies you think is qualified and give them a call. From there, you can ask them about certain aspects of the job, including:
- Their services and what they can offer to your property
- Their techniques in handling issues in managing properties
- How they collect rent
- Their methods in managing repairs
- How they screen tenants
Gather as much information as you can to get a better look at the potentials of the companies. You can decide by then before you terminate your former agency. If you are having a specific problem with your current company, such as poor communication or perhaps inefficiency in processing documents, you want to make sure you ask questions connected to that particular issue. This way, you do not run into the same challenge again.
It helps that you set expectations right from the beginning. You should let the new company know why you are making the switch. Be concise yet clear on the issues you faced with your former management company. Talk to your prospect about why the previous company did not meet your requirements or standards.
You should also let the new company know what you expect from your relationship with the property management and what can happen if those expectations are not met. You can even set a timeframe for the partnership, such as a month from now. It should give you enough time to appraise how things are going, and you can address any issues so that they do not get out of hand.
As you search for a new company, you will find some that offer their services for less money. While you can save some cash, you should be cautious in signing up with them, especially if the firm already looks doubtful. Often, you get what you pay for when dealing with rental properties and you can end up losing thousands of dollars instead of saving them.
Let Us Do the Rest of the Work
Making the switch can be stressful. We take pride in helping our clients in Orlando in making the change as seamless as possible. We can assist you during the transition so that you only deal with the property management company that you can trust right from the beginning.
Call us at 407-382-8100. We look forward to speaking with you!