Some business relationships run there course and are no longer profitable or manageable. As a rental property owner, you may think. “Hey, I've been with my current property management provider for 5 plus years. Things haven't been great, but I can't possibly switch to another provider. The time and cost are too great to switch now.” However, it may be easier then you may imagine.
Today we will be covering what you'll need to provide to your current property management company for a smooth transition to your new provider.
You'll first want to check the termination clause or termination penalty in your property management agreement with them to ensure you give the proper notice and timeframe. Some companies may have a cancellation fee. So it's imperative to review the property management agreement before jumping the gun and sending your termination notice.
The Clean Break-Up
We recommend using the old "It's not you; It's me" adage. Thank them for all the work they have done for you up to this point. You may be frustrated with how they have recently been performing or how they handled a situation. But keep in mind there is a lot that goes into managing your property that takes place behind the scenes. However, if the relationship is not working and you don't see the value, it's time for a clean break.
When breaking up, you'll need to provide them with written notice. Whether that be a form they have for you or if a simple email with your notification suffices.
Your Dear John Letter.
To whom it may concern,
Thank you for your service thus far. However, I would like to pursue other options.
This notice is to inform you that we are making a change in Orlando property management for the property(s) at __________
My new firm, The Listing Real Estate Management, will be reaching out to you after you've received this notice. Thank you in advance for your cooperation in the transfer.
Please supply New Management Company with anything they should need on my behalf to facilitate a smooth transition. Property Manager is CC'd herein for convenient contact. We request the transition to be completed as soon as possible, and they will be taking over management at that time.
Taking Back Your Things
Unlike a real break up with your SO, you'll likely never have to see your property manager ever again physically. You can simply request the following items be transferred to the new property management provider electronically. The main items you'll need to request from them to transfer to your new provider for a seamless transition is the following if your home is tenant occupied:
1) Tenant Names & Contact Information
2) A copy of the executed lease, addendum, etc
3) Security Deposits & Pet Deposits
4) All keys, gate fobs, amenity cards, parking passes, etc. for the property
5) All warranties for any repairs/maintenance which have been completed at the property
6) A copy of the tenant ledger
7) A copy of the move-in inspection
8) Any misc items that pertain to the tenant and property being transferred
When the home is vacant, the break-up process tends to be much easier. It's important to note you don't have to wait until that time. Do your due diligence and research the new company you are going to be transferring too. There is nothing worse than thinking the grass is greener on the other side and when you're on the other side, finding out it sucks. Trade up never trade down.
If you have issues with your current property management provider and need assistance breaking up with them. Feel free to reach out to The Listing Real Estate Management, property managers in Orlando Florida. We have a templated break up letter for you, and we'd be happy to answer any questions.