As a real estate investor, it’s imperative to leave your property in the hands of the most capable and responsible team. Unfortunately, the reality is that not all property management companies have what it takes to run your investment. While firms such as Luxury Property Care consistently strive to exceed expectations, many companies fall short. In that case, the wisest move would be to transition to a management team that aligns with your standards, guaranteeing that your property receives the quality care it requires.
In this article, we explore what that process looks like, allowing you to ensure a seamless switch.
Common Myths About Switching Property Management Companies
If you’re contemplating a shift in property management teams but are on the fence because of common misconceptions, we’re here to dispel those myths and provide clarity.
Myth #1: I’ll Lose My Tenants When Switching Home Property Management Firms
Contrary to the belief that switching property managers will result in tenant loss, it’s crucial to understand that the termination is only between you and the firm, not your tenants. Even if your property management firm secured your current renters, they won’t take them when they leave. Your tenants will stay put since they’re tied to your property, not your management team.
Myth #2: My Tenants Will Have to Sign a New Lease Agreement
Switching property management teams won’t inconvenience your tenants with additional paperwork or the need to sign new contracts. Your current lease agreements will stay the same—the only change is that the new company will assume the role of overseeing the contract’s terms. Additionally, your new team will now be the ones to execute the responsibilities in the contract, such as rent collection and repairs.
Myth #3: I’ll Have to Spend Time Training My Property Manager
As long as you switch to an experienced property management team, you won’t have to lift a finger during the transition or set aside time for training. A proficient team can uncover your property’s history by reviewing documents such as rental contracts, inspection reports, etc., sparing you from the task of bringing them up to speed.
Myth #4: I Can’t Switch Home Property Management Companies Mid-Lease
You don’t have to wait for your tenants’ current rental contract to end to switch management teams. However, it would be ideal to time the transition 30 days before the next rent collection. This timeframe gives your past and new property management teams enough time to sort out the details, so as not to inconvenience your tenants when rent is due again.
How to Switch to a Home Property Management Company
When your property management team fails to meet your expectations, it’s time to let them go. Here’s how:
Review Your Property Management Contract
Before you end things with your current property management team, be sure to meticulously review your contract’s cancellation policy. Specifically, check the termination clause—this indicates the minimum notice period for canceling a contract, which is typically 30 to 60 days.
Additionally, be aware that terminating the contract early may entail a minimal fee. The exact amount depends on the terms agreed upon at the start of your partnership, but it’s usually equivalent to one month’s worth of management fees, or the remaining fees that would have been received had the contract not been terminated.
Explore Your Options
Take the time to explore your options for property management teams in your area prior to terminating your current contract. It’s crucial to avoid canceling your contract when you haven’t secured a replacement yet, as this could put you at risk of self-managing your property while searching for a new team.
During your search for a home property management company, direct your attention to services your previous team fell short of—whether it be unreliable communication, failure to fill your vacancies fast, or poor rent collection practices. By pinpointing these shortcomings, you can make sure your next team can meet all of your expectations. That way, you won’t have to undergo another switch so soon.
Notify Your Property Management Company of the Cancellation
Even if you’ve had a not-so-good experience with your current property management company, maintain professionalism throughout the transition. Once you’ve identified a qualified property management team, send your current company a notice of cancellation. This written communication will serve as a protective measure, providing evidence in case of any legal issues arising from the termination.
When parting ways, it’s common for your current property management team to ask about the reasons for the switch. Understand that they’re doing this to gain feedback, allowing them to enhance their services for future clients.
Gather All Pertinent Records From Your Past Property Manager
Some property management companies facilitate a seamless transition by transferring all pertinent files to the new team, including rent contracts, rent applications, inspection reports, and more. However, it’s vital not to assume this responsibility will be shoulder by your current team. Be sure to ask about their protocol to determine if they will handle the turnover themselves, or if you personally need to collect the files and provide them to your new team. By clarifying these details, you contribute to a smoother transition, and reduce the potential disruptions in the management of your property.
Inform Your Tenants About the Switch
As we’ve mentioned, the transition will be a seamless, burden-free experience for your tenants. Nevertheless, it’s still a good practice to inform them of the change to guarantee clarity, especially regarding points of contact. You wouldn’t want your tenants to reach out to your former team for repairs, only to face disappointment when they’re turned away. To promote a smooth and satisfactory experience, make sure to keep your tenants up-to-date with any transitions in management.
Hire a Home Property Management Company for the Long Haul
If your current property management team falls short of your expectations, turn to the experts at Luxury Property Care. With years of experience in the South Florida market, we’ve honed our expertise in managing a diverse range of property types. Our suite of unparalleled services spans rent collection to portfolio expansion, all designed to cater to the distinctive needs and goals of our clients.
Not only are we committed to making sure your investment is well-managed, but that it also generates maximum returns. We measure our success by yours—so when you choose us, you’ll have a partner who’s genuinely interested in helping you secure sustained success.