Having your property run by a property management firm is one of the wisest decisions you’ll ever make as a property owner. The property manager will handle rent collection, tenant screening, property management, and repairs, among others. But, even though you’re currently comfortable with your property management firm, you should be ready to transition to another firm when the right time comes. The transition is not always easy, but the four tips below will make it smoother:
Make sure you’re on the same page
The incoming residential property management firm should understand your objectives for the property. Take the time to explain your goals, including your renovation plans. This will ensure that they’ll know which direction to take once you’ve given them the “go” signal. Also, it’ll be a big step into building a better working relationship to avoid misunderstandings.
Get documentation from the previous manager
There are several key documents that the new property manager will need. The basic documents include current rent invoices, tenancy schedule, and a debtors report. Your new manager will need to check the leases against the tenancy schedule, especially if you have a lot of tenants in the property. There are chances that you do not have a standard lease, so the manager might have to involve tenants to understand the lease terms and how they differ from one to the other. Invoice copies are important to assist the manager in checking the current rent against the lease.
Communicate with those on the ground
Change is difficult for some people, and it is not always warmly received. To make it easier for everyone, make sure you communicate the change to all the affected parties. This includes your team on the ground, tenants, and service providers. The on-site personnel will want assurance of their futures, and they will be more cooperative if they are informed beforehand. It is normal for tenants to be against the change if they think it will be unfavorable to them. Reassure them that everything will remain the same. They should get the new manager contact information, so they can openly talk about the challenges they are facing and make suggestions on how they can improve the property.
Look into the digital assets
It is common for digital assets such as social media accounts to be forgotten during the negotiations. It is typical for the outgoing firm handling residential property management to delete social media accounts. Digital assets belong with the property, and they should be added to the contract because just like physical assets, they cost money. Ask the previous property management firm to hand over these materials.
Finally, you need to be ready to handle anything. No two firms are the same, so be flexible to accommodate the new firm and their ideas. It is wise to stay in touch with the previous property manager until the transition is complete. The change might not be perfect, and the outgoing firm might not be as cooperative as you expect them to be.