There are many reasons to change property management companies for HOA Community Boards. This decision is made to create better communication clear financial reports and to achieve strength for your owners. Feel free to contact HBK Services to guide you through your Property Management Company change.
Make a Smooth Property Management Transition
The decision to change property management companies should not be stressful. If you are ready to appoint a new manager for your property there are a few recommended steps that you should do. Before you make the change prepare. Here are some preparation steps to ensure the property management company change is executed smoothly. Executed without added cost:
Provide Required Notice
Read your current property management contract. Look for the termination clause. Every contract should have a termination clause. Look for the time of notice requirement. Most requirements state from 30 to 90 days prior notice. Before ending the agreement get ready to give your current property management contract. Therefore if you do not provide the required warning bad things happen adding cost. It is likely that you will run the risk of breaching of contract. Do not expose yourself to penalties and cost in case of a complaint or lawsuit. Use caution and follow what is written in your current HOA Property Management contract.
If you find unexpected cancellation costs hidden in your current contract feel free to contact HBK Services we will guide you in your cancellation process. with your current property management company.
Write the Cancellation Notice
When you provide notification it must be in writing. You can arrange a termination yourself. We advise that you when you begin to Change Property Management Companies you delivery your cancellation notice using certified mail. Request a return receipt. So that you have it on record the letter was received. Whichever service you choose for delivery it should have a delivery confirmation. Save this for your records showing that this document was both sent but also received by the outgoing property management company.
Cancellation Is Not Personal
Keep your cancellation all business. Matter of fact. Landlords complain about being treated poorly or that their whole experience with the property management company was horrible. If the same thing happened to you it could be impossible to keep emotions out of the process. A decision to fire the manager is a business decision. Therefore your focus should only be on the business procedure. Look forward to the new incoming improvements for your property and HOA Board.
Find Hidden Costs
Some management companies charge a fee for termination. If the property owner or the landlord decides to terminate the contract early even with a prior notice. If you discover these fees you should check what the company you worked with is entitled to before providing any notification. Do your research or have HBK Services review your contract so you can prepared for to make the change. If you feel the change needs to be made immediately the costs may be worth paying. You can then pay the manager for all fees you owe them until the effective date of the contract termination. Our experience is that beginning the process sooner means saving thousands of dollars to get away from the poor management.
Some fees may seem excessive. Don’t feel like you’re that you are stuck. Companies install some of these fees as a scare tactic. These fees may be illegal. HBK Services can review any agreement easily. Our trained professionals can walk you through the process and offer sound advice. Many times we can work you around fees and save you money. Either way you would be informed and ready to make a smooth transition. Call us.
Notify Your HOA’s Owners
It is essential that you ensure all your owners are informed regarding a change in management. Better yet make sure they feel involved in this decision. As much as possible communicate with them about it before it occurs. Make a formal change announcement by sending a written notice to all your owners. This step is essential so that they know who will manage them soon. We can assist in the communications and prepare their new association documents for the change.
Allow Time for Fund Transfers
It may take time for the transfer of all funds from your account with your outgoing property management company. Time usually depends on the current status of accounts. Expect a full transfer to be completed in one to two months. We serve as an assurance that the existing agency provides all payments to the prior invoices before making the balance transfer. Our accounting department is well-versed in executing these changes. We will assure the deposits of your owners will be set up right at the time you have a new management account.
Have Copies of all the Essential Paperwork
Your former management company should provide you with copies of all documents including mortgages security deposit records and statement of expenses and income. All documentation and records should be given to you immediately upon the time you terminate the contract.
Explore Your Other Options
One of the most crucial steps to take is to find the property manager you would like to work with. Before you make the switch have a list of the companies you think is qualified and give them a call. From there you can ask them about certain aspects of the job including:
- Their services and what they can offer to your property
- Their techniques in handling issues in managing properties
- How they collect rent
- Their methods in managing repairs
- How they screen tenants
Gather as much information as you can to get a better look at the potentials of the companies. You can decide by then before you terminate your former agency. If you are having a specific problem with your current company such as poor communication or perhaps inefficiency in processing documents you want to make sure you ask questions connected to that particular issue. This way you do not run into the same challenge again.
It helps that you set expectations right from the beginning. You should let the new company know why you are making the switch. Be concise yet clear on the issues you faced with your former management company. Talk to your prospect about why the previous company did not meet your requirements or standards.
You should also let the new company know what you expect from your relationship with the property management and what can happen if those expectations are not met. You can even set a timeframe for the partnership such as a month from now. It should give you enough time to appraise how things are going and you can address any issues so that they do not get out of hand.
As you search for a new company you will find some that offer their services for less money. While you can save some cash you should be cautious in signing up with them especially if the firm already looks doubtful. Often you get what you pay for when dealing with rental properties and you can end up losing thousands of dollars instead of saving them.
Let Us Do the Rest of the Work
Making the switch and the process of beginning to change property management companies can be stressful. We take pride in helping our clients in Orlando in making the change as seamless as possible. We can assist you during the transition so that you only deal with the property management company that you can trust right from the beginning.