Questions I have with changing property management companies

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Questions I have with changing property management companies

Ken Miller
Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes

Good morning, I am new to being a landlord and am going through my first property management company change. I am not exactly sure how it all works and if anyone can help shed some guidance that would be great!  At this point I have submitted my termination request to my current management company and am waiting for their response. It has now been over two weeks since I sent I my notice to them and I haven't been contacted by them on next steps about getting the keys and things for the new management company.  I am wondering if this is normal or if I should be concerned and some possible next steps I can do to keep things moving along

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Ujwal Velagapudi
Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
6y

If you're leaving them, then I'm sure they were lacking in some areas, so I wouldn't wait for them to reach out to you, hand over keys, inform tenants, train the new PM, give you a log of all the pending items/P&L/rent ledger, etc. I've gone through a couple of these and the transition is the point where we as the investor need to step in heavily to make sure it is as seamless as can be. They probably aren't ecstatic that they've lost your business, so it'll be on you to push them through this process and make it clear they still are supporting you through the end of your contract. 

Get a full breakdown of everything that is going on with the property, tenants, etc. Simultaneously try to get your new PM acquainted with things even prior to taking over. I had planned for my transition for about 2+ months, slowly discussing with the new PM, then about a month prior providing all related documentation. The last thing I gave to the new PM were the keys, but they had all other information to get started a couple of weeks prior to my old PM's contract being terminated. 

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  • Ujwal Velagapudi
    Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
    6y

    If you're leaving them, then I'm sure they were lacking in some areas, so I wouldn't wait for them to reach out to you, hand over keys, inform tenants, train the new PM, give you a log of all the pending items/P&L/rent ledger, etc. I've gone through a couple of these and the transition is the point where we as the investor need to step in heavily to make sure it is as seamless as can be. They probably aren't ecstatic that they've lost your business, so it'll be on you to push them through this process and make it clear they still are supporting you through the end of your contract. 

    Get a full breakdown of everything that is going on with the property, tenants, etc. Simultaneously try to get your new PM acquainted with things even prior to taking over. I had planned for my transition for about 2+ months, slowly discussing with the new PM, then about a month prior providing all related documentation. The last thing I gave to the new PM were the keys, but they had all other information to get started a couple of weeks prior to my old PM's contract being terminated. 

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  • Ken Miller
    OP
    Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes
    6y

    @Ujwal Velagapudi

    This is really good to know, thank you!

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    @Ken Miller if it's not in the management contract then they don't need to do it!

    Also, think about it this way, when you bought your rental who sat you down and told you everything you would have to do to make it work? I'm pretty sure you had to put some work into figuring it out yourself with the help of online forums like this:)

    So, the PMC your terminating has no idea what you want and no incentive to try to help you figure it out. Your new PMC should be assisting you with requesting what they need.

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
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    1Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    6y

    There should be a stipulation either party can give like 30, 60 day notice to terminate ....

    1Reply
  • Terry Zannella
    Rental Property Investor · Tampa, FL · Member since 2017 · 13 posts · 8 votes
    6y

    I have gone through this once and based on my experience I think Ujwal and Drew provided great insght.


    A couple minor items I would add. First, I would call the current PM to verify receipt of your notice (assuming you didn’t drop it off in person). This will also allow you to prevent a scenario where the PM claims they didn’t receive it.

    My experience involved leaving 1 PM that had poor communication and consistently refused to acknowledge my requests in writing and would later attempt to claim that I never corresponded with them. 

    Next, along the lines of getting your new PM involved, I asked my new PM the same questions you asked above. They said don’t worry, and they took care of a majority of it. They wanted to earn my business and made my life easy. How could I refuse? They have been a great company to work with for a couple years now. Good luck!

    1Reply
  • Ken Miller
    OP
    Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes
    6y

    @Sam Shueh Yes, it is 30 days with the company I am leaving

    0Reply
  • Ken Miller
    OP
    Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes
    6y

    @Terry Zannella Thank you for your help and input

    0Reply
  • Ken Miller
    OP
    Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes
    6y

    @Drew Sygit Thank you for your help and input

    0Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    Biggest issue I'm running into is access to prior records.

    If they use some online PM software (ie Yardi, AppFolio, Buildium, etc), the contract is with the PM and NOT you, even if it is your property info.  Most cases if you call the software guy, you'll need the PM permission to switch over access.

    Lesson - Do NOT burn your bridges with the PM.  See if you can get a sign-on and then work with the new PM to see if you can transfer info before.  Otherwise, go to the PM and ask what it'll cost.

    1Reply
  • Ken Miller
    OP
    Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes
    6y

    @Steve Morris Good to know, thank you

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    Ken, DM and Follow us and we'll send you our standard "Wish List" we send PMC's when we're taking over management from them:)

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
    WebsiteView Page
    1Reply
  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    6y

    @Ken Miller what is causing you to switch companies out of curiosity?

    [email protected]732-289-3823
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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y
    Originally posted by @Peter Tverdov:

    @Ken Miller what is causing you to switch companies out of curiosity?

    Most stuff I;m seeing in Portland:

    1) Owners that understand their report are catching some overcharges in maintenance.  Lots of PMs use it for a profit center (ie charge $75/hour and pay the guy $20)

    2) Non-involved owners see their monthly check shrink.  Think it's the PMs fault.

    3) Some PMs are going thru their portfolio and weeding out guys they don't like

    4) Startup PMs are spreading themselves thin to get/keep new business.  It shows since they try to "buy" business with low pricing.

    1Reply
  • Ken Miller
    OP
    Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes
    6y

    @Peter T. It is a lot of things, things that have already been said, but mostly I don’t trust them or that they hav my best interests in mind

    0Reply
  • Anna Sagatelova
    Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
    6y

    Your new PM needs to follow up with them to request exactly what they need (leases, tenant ledgers and contact information, keys, etc) and more.

    Did your old PM confirm receipt of your 30 day notice to terminate? Or total radio silence?

    1Reply
  • Ken Miller
    OP
    Rental Property Investor · Lakewood Ranch, FL · Member since 2012 · 17 posts · 3 votes
    6y

    @Anna Sagatelova Thanks for sharing this and that is my plan. I have been in contact with my old PM and my new PM and things are moving in the right direction at this point to get everything moved over

    1Reply
  • Calvin OzanickBusiness Member
    Property Manager · Janesville, WI · Member since 2017 · 708 posts · 297 votes
    6y

    The first step you are going to want to take is speak with your attorney and request the information you need. The attorney will advise you on how to proceed but that letter from an attorney should the get former PM company moving. Then you just need to move to your next PM and be very clear with the drawbacks and limitations of your previous manager. As you continue to grow, you will need to keep working with your PM to set clear and attainable expectations. 

    Wisconsin Property Managers4.7414 Reviews
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