Self Manage 80 Unit Apt Building

[Nick Tebani]

Hi there,  I am getting rid of the property management company of my 80 unit apartment building in California in order to self manage it myself with my own staff.

Do I need to notify anyone of that - namely my lender?  When I got the loan, the property management company was involved and asked to sign several documents verifying they will be managing the property.  Is the property management company supposed to let them know our management agreement is ending?  If they do, what then?  Will they preclude me from managing it myself?

[Kaiser J.]

If you have a commercial loan then you likely have a balloon payment at some point that you expect to refinance. It would reflect poorly on you if they find out during the refinance process that you did not stick to the agreement and did not give them a heads up. Your lender is a partner, treat them as such even if it would likely be OK not to.