Owners don’t realize switching property management companies can be as simple as giving notification.When an owner wishes to transfer their portfolio, Harvard Pacific handles the conversion from beginning to end only requiring a few signatures. If you’ve decided you’re ready to make the move to appoint a new property manager, there are a few things we recommended you do beforehand, to ensure your switch goes forward without any issues.
1. Give the required notice.
Check the termination clause of your management contract. Most management contracts require between 30 to 90 days-notice to terminate a contract. If you don’t give the required notice, you risk breaching your contract and may be exposed to penalties and could find yourself in a lawsuit. Notification to terminate a management agreement must be in writing. If arranging the termination yourself, we recommend sending the notice via certified mail with return receipt requested to be sure you have it on record it was sent and received. If your experience has been upsetting or you’ve been treated poorly, it can be hard to keep the emotions at bay. Once you’ve made your decision to leave, remember this is a business decision. Just focus on the transaction and look forward to this new stage for you and your property.
2. Ensure you receive copies of important paperwork.
Always ensure you receive copies of all leases, records of security deposits and a statement of all income and expenses from your former property manager. These documents should be sent to you immediately upon termination of the contract and kept in your records.
3. Check for hidden costs.
Even if you do give the required notice, sometimes there are agencies who will charge a fee if a landlord terminates early. Check what your agency is entitled to before giving notice, so you’re prepared. You can then take the responsibility for paying the manager all fees they have incurred up until the contract termination effective date.
4. Ensure tenants are correctly informed.
It’s important that your tenants are properly informed of the change in management well in advance. They should be informed in writing by the property owner or property manager who will manage them from this stage forward. It is also a nice gesture for the new management company to welcome them personally, so they feel acknowledged and confident they’ll be taken care of.
5. Allow time for the transfer of funds.
The transfer of all funds from one account to another can take some time. Depending on your accounts current status, expect it to take one to two months to receive all landlord funds due to you. This is to ensure existing management has paid all prior invoices before transferring the balance. Tenant rental deposits however, should be set up to be deposited into the new management account on the transfer date.
Once you have made the decision and notified your current property management company, Harvard Pacific will commence our property takeover procedures and keep you informed each step of the way. With offices in Tampa and Orlando, Harvard Pacific has you covered in Florida. Learn how Harvard Pacific 3rd Party Property Management will partner with you. Click here to set up a meeting.