Hassle-Free Property Management Change
Is your current property management relationship not working for you? An Association can easily transition to another management company without any problems. It is a pretty straightforward process with the right team. Here are some facts about changing companies and your Association’s rights.
It is not unusual to switch owners or managers for a rental property. Here are administrative and communication steps to follow to ensure a smooth transition process.
Notification to Prior Management
One of the first steps is to review your existing property management agreement and understand the terms in the contract. What is the timeframe to notify cancellation, and is there a termination fee? Once you determine these factors, put a cancellation notice in writing with a transition date.
Communicate with Your Tenants About the Switch
It is crucial to communicate with your tenants regarding the transition. Once you sign an agreement with a new property management company, it's essential to let your new tenants know all the details about your new property management company. This should include how they'll collect rent, who the tenants should reach out to if they have any issues, and the process for requesting repairs or dealing with maintenance issues.
A lease amendment is one of the most common ways to notify the current residents officially. It will state all terms of the original lease with the new management and/or ownership information. This amendment can be posted on the resident's door, delivered in person, or mailed through certified mail.
Collect the Necessary Documentation From Your Existing Property Manager
Before making the switch from one property management company to another, it’s imperative to collect all the necessary documentation and materials your new property manager will need to do their job effectively. This includes leases, applications, security deposits, move-in, annual inspection information, renewals, financial records, maintenance history, inventory list, spare keys, photos, and property documentation.
Conduct a Building and Property Audit
We recommend conducting a complete property audit performed by the incoming property management company.
The new property management company should assess the current staff members by interviewing them to ensure that they are performing at the highest level possible. Each employee should have a job description, daily work routines, and written procedures.
Facts about Property Management Change
- A transition does not need to be a long or complicated process. Typically it takes less than 30 days. Bravo Property Management & Realty assist you with a hassle-free property management change.
- Georgia law protects Associations during a transfer of information from a previous management company. It must be done in a timely and orderly manner, and the records need to be kept for seven years.
Set Proper Expectations
Make sure to set the proper expectations upfront. When everyone’s on the same page from the beginning, you’re much less likely to run into issues down the road. It is vital to set these expectations because you do not want to run into the same challenges, problems, and issues that led you to switch. It is essential to communicate with your new property management company why you're changing in the first place. Discuss the problems that you experienced with your former property management company so they will not occur again.
Set a timeframe into the new relationship to review how things are going and address any issues before they get out of hand. Ninety days is a fair amount of time to see if things are working out.
Two Frequent Mistakes
One of the most common mistakes is not transferring over the security deposits. If the prior management has not collected a security deposit, require it during the lease renewal.
Another common mistake is thinking the tenants need to sign an addendum or amendment to the original lease during a property management change. Owners are not required to get tenants' approval for changing management or selling a property.
If you are looking to switch to a new property management company, we would love to talk with you to see if we can be a good fit? Give us a call at 678-509-8800 or contact us
to find out how Bravo Property Management & Realty can take the hassle out of property management for you and your investment.