STEPS TO GETTING YOUR RENTAL PROPERTY MANAGED - PART 2 OF 3
In Part 1 we covered the interview process on selecting the right property manager for you and your rental property.
As was stated, you are more than likely in 1 of 3 positions:
First time landlord
You have been managing the rental property yourself
You are not satisfied with your current property manager
Anyone of those positions should include the interview process. Now we will discuss what should happen if you have a current tenant in your rental property that you want managed by a property manager.
Once you have chosen a property management company you are excited to do business with, if there if a current tenant renting the property, the property manager will need some additional information from you.
First, the property manager will need to know if there is a current written lease, and if so, they will need a copy of it. The management company is obligated to abide by the terms of the current lease, should the tenant is not be willing to sign a new lease. This could happen for various reasons. It could be that they aren’t sure if they are going to stay when the current lease expires, or it could be that if they signed a new lease, the new expiration date may not be convenient which may be due to schooling matters. Most of the tenants I have worked with are not just being facetious because they can, but they just aren’t sure of their plans. Change can be difficult, even when it’s for all the right reasons.
Second, the property manager will need to have a record of the tenant’s payment history. They will need to know if the tenant has a past due amount and how much they owe, if any.
Third is the security deposit. Many property management companies will want to hold the security deposit in their own trust account. If that is the case, you will need to give that to the property manager when you sign up with them. Some management companies won’t want to hold the security deposit since they were not involved with the screening of the tenants or they don’t have photos of the property condition when the tenant moved in. This would a question to ask the property manager.
Finally, the management company would need a letter from you to the tenant that informs them of your decision to hire the management company. Most property managers will have a form letter that you can simply review and sign. Without this letter being given to the tenant, the tenant is under no obligation to contact or make rent payments to your new management company. It is important that they are given written notice by you; however, the property manager can deliver it for you.
These are the basics of getting your property managed when a tenant is present. Some management companies may have additional information they will need as well.
Should the property be vacant, you would simply complete the management agreement with the management company and the property manager would get started marketing for a qualified tenant.
For Part 3 of this blog, we will discuss the steps to take when you are not satisfied with your current property manager and want to switch companies.
Thank you for your time. I hope this information was helpful, and the best of luck with your rental property!