Many long-term rental property owners have gone through a change in property management at one time or another, but despite the fact that it’s a crucial step in the process, the “breakup” phase of that transition is almost never talked about in our industry. Just like in a romantic relationship, there is a right way to go about a breakup. As one of my sons would say, “Don’t ghost.” (This translates to: Don’t simply disappear and stop responding to texts and calls. That’s all the current dating lingo I’m privy to.)
Before we dive into our four main tips: Maybe this goes without saying, but before you break up with your current property management, you should already have chosen and informed the company that will be taking on your property. Of course, that new company will be eager to sign you, but sometimes it’s worth an additional conversation just to confirm they have the bandwidth to start exactly when you need them to. Don’t seal your next breakup during this one.
1. Don’t burn bridges.
If you can part ways amicably, that’s always best. There may have been a time when your management company served you well, and you may want to thank them for their years of service. Even if the relationship has soured, or there are unresolved issues between you and management, this kind of acknowledgment can go a long way in keeping things civil and professional during the transition phase.
Your new manager is likely going to need cooperation from the outgoing team, and if there’s been a friendly parting, that alone can be reason to swallow hard and thank them for their work.
2. Tie up loose ends.
It’s important to determine who exactly will finish any work that’s currently in progress with the management company you’re moving away from. They might be in the middle of repairs at your property, and if that’s the case, you’ll want to know who they’ve tasked with finishing the work so that nothing falls between the cracks. Don’t be afraid to set clear and reasonable timelines for completion.
3. Prevent awkwardness with communication.
You can increase clarity between parties by telling a supervisor right away what you expect to have done after you’ve informed them you’re terminating their services.
If your current management has become a disaster, it may be best to pay them that last month’s fee without letting them do anything, and ask them to allow the new company to do everything. Nobody wants to pay double management fees for a single month, but sometimes that’s the only alternative to an even bigger mess.
4. Give some grace.
Chances are, if they’re taking over for a company that did so poorly you had to move on from them, your new management group is going to have their work cut out for them. So give them time to shape their service to your specific property needs, and allow for the occasional misstep while so many steps are being taken at once. Nobody wants to be reprimanded if they do 29 things right but number 30 goes awry.
Though it might not be perfectly easy or comfortable to leave a management company you’re not satisfied with, remember that you can learn plenty from the process. Tell your new management company all the issues you had with the company that came before them, so that they can take extra care not to make any of the same mistakes.
Perhaps the most important step you can take is to make sure that your new management is not the type you’ll have to break up with. You’ll know you’re in good hands when the transition goes smoothly—as it should.
