Why Should You Change Property Managers?
Property management companies are responsible for handling the administrative duties of a building or facility and may have staff to assist them. Real estate investors engage a property manager or property management company when they do not live near the property or do not wish to personally manage the property.
What to consider
Landlords are usually hesitant to change property management for fear of upsetting the status quo. To overcome this fear and to justify this action, as an owner, it is important to address the following questions:
- Do you get regular communication with the property management company?
- Are regular performance reports sent to you?
- When repairs are made, are the costs reasonable?
- How is the non-payment of rent handled?
- How are the rental arrears collected?
- Are the vacancies filled quickly with urgency?
- Do you get complaints from tenants about how management is handling their issues?
- Are the costs of running your property in line with industry norms?
- Is the property manager well versed in the laws and latest updates in the municipal and provincial laws regarding rental properties?
Once these questions have been thoroughly answered, you will get a better idea on whether or not you are satisfied with your current property management company.
Deal with cordiality
Dealing with the company on a cordial basis will improve your chances of a smooth transition. The discussion should be done on a professional basis, where you explain your dissatisfaction. This will make it easier for them to come on board with your decision.
Study the agreement
Ensure that you have studied the agreement carefully and are aware of all the termination clauses, so you understand your options. You may need to give a notice period anywhere from 30-60 days, and there may certain fees to pay and lengthy processes to undergo.
Claim all the documents
The new management company must have all the relevant documentation on hand to ensure a smooth transition. So, it is important that documents include leases, applications, renewals, records of security deposits, inspections reports, maintenance histories and payment records are obtained in a timely manner. All spare keys and photos must also be handed over.
Inform the tenants and or owners
Communication with the tenants and in some cases unit owners is very important. Residents must be made aware so that there are no surprises when a new company and new faces are collecting rents and answering maintenance requests.
Timing is important
It’s best to wait until the important rent collection period is over at the beginning of the month before the transition is made from one property manager to another. This will ensure a smooth transition and if the process is not done properly, there will be complications and problems.
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