I am in the process of making an offer on a tri-plex in North Carolina that is fully rented with a Property Managment company in place. In the past, I have bought non-rented properties and when I found a renter, would use my preferred PM company. One tenant is on a 12-month lease, the other on a month to month and I plan on raising the rent of those on the month to month by 10%. Any advice on the best way to transition to my preferred PM company? Possibly a timeline giving everyone time to adjust?
@Stephen B. I'd recommend checking with your preferred company and see what they have to say on the transition as they've likely done this hundreds of times. I wouldn't mention the new shift to a different PM until after the closing. Things can fall apart for a variety of reasons and you don't want to confuse the tenants if that were to happen.
I like the idea of giving the tenants a month or two to digest the bad news of a rent increase, however this often gives the M2M tenants a reason to go find a new place. Just be prepared that they may happen.
May not be the worst thing to happen if their rents are under market.
Get the new company involved early and they can help facilitate the transfer nicely with the info that they need.
Don't forget to do credit checks, etc. for the tenants. You may want to get rid of the 2 that you can.