Changing property management companies can seem like a challenging task for property owners, but it can be a necessary step to ensure that your rental property is being properly managed. Whether you’re not satisfied with your current property management company, or you’re looking for better services or more competitive rates, knowing what happens during this transition is essential.
Why You’re Changing Property Management Companies
When it comes to rental properties, property managers play a critical role in handling day-to-day operations. If you're dissatisfied with the service provided by your current property management company, it’s time to consider switching management companies. Maybe you're looking for a company that offers a better property management service, or perhaps you need more attentive management for your rental property. Regardless of the reason, understanding the process of changing property management companies is important.
The Process of Changing Property Management Companies
The first step in switching property management companies is to review your current property management company’s contract. Look for clauses that specify the required notice period for ending the relationship. Often, this will involve providing a written notice to the management company that you are terminating the agreement. The property management contract may also include details about penalties or early termination fees.
Once you have legally ended your relationship with your current property management company, it’s time to look for a new property management company. The best property management companies have experience and a strong reputation in managing rental properties efficiently. It’s crucial to research the new property management company carefully to ensure they offer the services you need, such as efficient rent collection, proper maintenance, and clear communication with tenants.
What Happens After You Choose a New Property Manager?
Once you have selected your new property manager, the next step is to sign a management contract with the new management company. This contract will outline the terms of the agreement, including property management fees, the scope of services, and the responsibilities of both parties. Your new property management company will also need to review all documents related to your rental property, such as tenant leases, security deposits, and rental agreements.
If your new property manager is assuming responsibility for managing your property, they may ask for copies of any security deposits held by the previous company, and details on any tenant issues that need addressing. It’s important to ensure that your new company has access to all necessary documents so they can continue managing the property smoothly.
In-house Maintenance and Other Services
Another important factor in changing property management is understanding whether your new company offers services like in-house maintenance teams. If your current property management company relied on third-party contractors for repairs, your new company may have its own maintenance team, which could offer faster and more reliable service.
Some property management companies charge a tenant placement fee to cover the costs of marketing the property and screening new tenants. Be sure to confirm whether your new company charges such fees and whether their property management services are aligned with your expectations.
What to Expect After Changing Property Management Companies
After signing the contract and transferring responsibilities to the new property manager, they will take over tasks such as collecting rent, managing tenants, and handling property maintenance. Your new property management company will ensure the smooth transition of responsibilities, including overseeing any security deposits and adjusting the lease agreements as necessary.
Switch to Freedom House Property Management
Changing property management companies can be a significant decision, but it’s an opportunity to improve the management of your rental properties. By carefully selecting the best property management companies and ensuring a smooth transition with clear contracts and communication, you’ll be better positioned for success in managing your rental property.
If your current property management company isn't meeting your needs, switch to Freedom House today! Contact us to learn how we can help you effectively manage your rental properties.
