STEPS TO GETTING YOUR RENTAL PROPERTY MANAGED – PART 3 OF 3
In this 3 part blog we have discussed the interview process, and the additional information needed when you hire a property manager when there is a tenant in the property. In this last part we will talk about if you are switching management companies because you are not satisfied with your current management company.
There will be times during your business relationship with a property manager where you will be unhappy with them. It is normal to be unhappy with your property manager from time to time, as we are imperfect humans. What is not normal is if your property manger continues the bad behavior even after you have discussed your dissatisfaction with them. Before ‘jumping the gun’ and firing the management company, ask to speak to the property manager’s supervisor. Many management companies have a Director, or Manager, or even the Broker who is in charge of overseeing property manager activities. The property manager supervisor doesn’t always know the property manager is practicing bad business habits unless they are made aware of the problem. I have heard many times by owners how they did not want the property manager to get in ‘trouble’. The real question for you, the owner, should be ‘If the property manager is doing this to me, are they doing this to my tenant? Is my property being managed correctly?’
There are solutions available to you. It may be that the supervisor keeps closer tabs on the property manager, trains them more, and holds them accountable. You may even be able to ‘clean the slate’ and start fresh with the property manager. If you have already tried this with the property manager, maybe being changed to a different property manager would be a better solution.
If you have gone this route or it still isn’t working, then transferring companies would be your next solution.
You should be aware that many management companies have a cancellation fee and/or fee if they acquired the current residing tenant. Be prepared for that. However, based on your reason for dissatisfaction, you may be able to negotiate a lower fee or get it waived entirely.
Once you have tried the options presented, made up your mind to change management companies, have interviewed and determined the new management company to do business with, the next step is to get a written agreement from your current management company of some type of agreement to terminate the management agreement. Many management companies have a form letter that would require review and signature by you. At a minimum, you could get an email from the property manager or supervisor that the management agreement is cancelled. Your new property manager should ask for a copy of this to make sure all parties agree that you are no longer under contract with your current management company. The reason for this is because the new management company could get in trouble by the state if it appears they have interfered with a current and valid real estate contract.
Now I’m going to insert a disclaimer here – Always contact your Florida Real Estate attorney for guidance or questions you may have with this process. I am not and I do not claim to be an attorney. I have been doing property management for 12 years and these are the steps I take in my management company.
Once you have your written cancellation, you can sign up with the new management company and the same steps in Part 2 would be performed in order to get your new management company overseeing and managing your rental property.
Remember to not become discouraged by an unsatisfactory business relationship, and never feel like you are being held hostage. There are always solutions; you just have to start by asking.
In my years I have seen many real estate agents who think they can be a property manager and shouldn’t, just as there are plumbers who shouldn’t be plumbers or electricians who shouldn’t be electricians. If you’re unhappy, ask for a supervisor just as you would if your cable company upset you. Ask for a solution by the company, and if they are unable to satisfy your concerns – switch.
I hope this has helped with any questions you may have had. Please comment below and let me know your thoughts. If you want to chat, my business number is 321-506-1009.