Investor · Los Angeles, CA · Member since 2016 · 256 posts · 111 votes
Hello BP and thanks for contributing to my thread. When relieving your proper manager from their duties, do you need to have your tenant sign a new lease agreement with you or the new property manager? The current lease is under the current property manager so I would assume that once the property manager is relieved of their duties that the tenant would need to sign a new lease under the new management. If you have experience with this please contribute.
When I switched pm's I had to be mindful of the orginal pm contract, and give whatever notice was on the contract...I had already found a new pm I wanted to work with and brought them up to speed on my situation...they took care of the new leases...if the new pm doesnt make your life easier, why are you changing?
You should be able to make an amendment to their lease stating you as the landlord and removing any reference to the previous manager. Sometimes the PM's put themselves down as landlord as well. I would not create a new lease agreement, unless you like them and you're able to raise rents.
Be aware that typically Management Agreements have a clause that state you owe them all their fees regardless. It's completely unfair they do a bad job and still get to keep 100% of their fees even if they didn't provide the full 12 months of service.
You will also have a 60 day termination notice. Look up your state laws regarding the deadlines for PM's to transfer all the proper documents to you or the new PM.