Advice for firing my PM to go Owner Managed

Member since 2019 · 6 posts · 0 votes

How do I go about firing my PM? Long story short I'm the owner of a property managed by a PM co. We've had the same tenants for the entire time, roughly 4 years. For the last year or so we've had issues with our PM and they're essentially no longer responding to my inquiries and owe us money for "accounting errors" and late fees not collected, which they have been notified of multiple times to no resolution and minimal response. Should I notify my tentants first (my only contact info is mailing address) before I send my PM certified mail notification that I'm terminating our contract? Do I send PM notification of termination first? I'd like to retain the tenants and will likely keep their lease terms as consistent as possible beside who they're remitting payment to. What is the process here?

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Give written notice and make it very clear.

That's just a short example. The point is to ensure they know exactly what to send and where to send it. They should notify the tenant of the transfer but I wouldn't rely on them to do it properly and you should consider sending your own letter introducing yourself and announcing the change.

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Jeremy Marek
Evergreen Park, IL · Member since 2016 · 138 posts · 59 votes
7y
@Liz Norman first thing you should do is look at what your contract with your PM says. It will usually tell you the appropriate way to cancel and the timeline required. That will determine a lot on how to take next steps
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John Petersen
Conway, AR · Member since 2017 · 12 posts · 8 votes
7y
@Liz Norman how much time is left on the current lease?
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John Petersen
Conway, AR · Member since 2017 · 12 posts · 8 votes
7y
@Liz Norman also I wouldn’t tell them you’re terminating until you’re absolutely ready to pull the trigger. Because then they’ll check out even more than they have already. I’m dealing with the same issue.
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Liz Norman
OP
Member since 2019 · 6 posts · 0 votes
7y
way ahead of that! Why I'm curious if I should give my tenants a heads up at the same time. I haven't had direct contact with them. I'm certainly getting all my ducks in a row (with serial #s) before I pull the termination card!
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Liz Norman
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Member since 2019 · 6 posts · 0 votes
7y
2.5 months from being 4 full years. Initial lease was 2 years, I am actually unclear if they renewed on an annual term or something else (like mo to mo).
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Liz Norman
OP
Member since 2019 · 6 posts · 0 votes
7y
Jeremy all it states is "60 days notice of termination" and that it needs to be written, certified, signed delivery.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
Give written notice and make it very clear.
That's just a short example. The point is to ensure they know exactly what to send and where to send it. They should notify the tenant of the transfer but I wouldn't rely on them to do it properly and you should consider sending your own letter introducing yourself and announcing the change.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
7y
adding to what Nathan wrote, you will want to mention a timeline for any outstanding balances owed to you OR the PM.
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Jeremy Marek
Evergreen Park, IL · Member since 2016 · 138 posts · 59 votes
7y
Originally posted by @Liz Norman:

Jeremy all it states is "60 days notice of termination" and that it needs to be written, certified, signed delivery.
So if it's 60 days notice, I wouldnt tell your tenant until the notice has been served, once notice is served, figure out which is the last payment that will be directed to the PM (let's say it's June 1st rent), I would tell them that you will be switching to a new system and they have to start sending rent a new way (I would use Cozy or something similar if I were you). Contact them twice about the new changes, once at like 45 day to tell them that this is their last payment with the PM and again at like 15 days before the switch over to make sure they will direct to you.
I wouldn't go into too much detail as to why you are getting rid of the PM, it's no real concern to the tenant
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Liz Norman:

How do I go about firing my PM? Long story short I'm the owner of a property managed by a PM co. We've had the same tenants for the entire time, roughly 4 years. For the last year or so we've had issues with our PM and they're essentially no longer responding to my inquiries and owe us money for "accounting errors" and late fees not collected, which they have been notified of multiple times to no resolution and minimal response. Should I notify my tentants first (my only contact info is mailing address) before I send my PM certified mail notification that I'm terminating our contract? Do I send PM notification of termination first? I'd like to retain the tenants and will likely keep their lease terms as consistent as possible beside who they're remitting payment to. What is the process here?
A simple email should suffice. Check with the PM contract. Most are a 30 day notice. However I am sure you could just start managing it today if you wanted to. They'd just likely charge you for the next 30 days & it'd probably take them that long to get you your final accounting & things of that sort.
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Liz Norman
OP
Member since 2019 · 6 posts · 0 votes
7y
very helpful, everyone! Thank you!
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