Owners of properties sometimes want to have someone else handle the day-to-day maintenance and operation of the property. The people who do this are known as property managers. Property owners occasionally need to change property managers because they find managers who can provide more services or because the current manager is not fulfilling obligations. Changing property managers can be beneficial to the property owner. However, there are considerations that owners must take into account to make the changes properly.
Review your contract with the current property manager. Take note of the specific clauses from the contract that indicate the terms under which you may terminate your agreement. Note the start and end dates for the contract, as well.
Investigate new property managers. Ask other owners for referrals. Interview several candidates before you make a decision. Drive by the current complexes that they manage, if possible. Call their employers as references.
Hire the manager or management company that meets your criteria. Do this before contacting your current manager so that you may provide details of the property for the new company.
Write a Contract Termination Notice letter to the property manager or property management company. Detail your reasons for terminating the property management contract. Cite the clauses in your contract that indicate that your concerns are valid and provide supporting evidence of any mismanagement. Indicate when the change of management is to be effective. In some cases, this may be at the end of the contract term, such as if management has been favourable but you have found a less expensive company. If management has been unfavourable, you may be able to terminate the contract immediately, depending on the terms of your contract.
Ask your property manager for any Change of Management forms that your new property manager may need. As shown by the City of St. George (see the Resources section), the forms should supplement your letter and provide information, such as the name of the new property management company, the agent representing your property and contact information for you and the property manager. Some companies do not require this, in which case such a form is just a courtesy that you can draw up yourself.
Submit your letter in person to the property manager along with supporting forms.
Contact all organisations, such as utility companies and banks, on which the property manager is listed as your representative. Have these agencies change the listing to indicate the new management.
Write a letter to your residents that explains the change of management. Keep the content of the letter positive. For example, highlight the new manager's experience and eagerness to work with the tenants. Include a way for the residents to contact the new property manager with questions or concerns, and specify the start date and address of where they should send their rent checks.