I will manage my property by my self and will fire the property manager.

[Jenny Kang]

Here’s a refined version of your message that maintains your original questions and concerns while improving clarity and flow:

Hello,

Since January, I haven't received the full rental payment from the property management company. This is my first rental property, and I'm already having significant issues with them. They initially told me I didn't need to review the contract, as it was solely between the management company and the tenant. However, I recently discovered that I'm missing about one-third of the rental income, and no explanation was provided. ( Actually, I just checked my account to get money: 10/2 $500, 10/17$700, 10/28$500).

Originally, I understood that the management fee would be 10% of the rental income. However, I’ve noticed additional charges that weren’t initially explained, and the rental payments are deposited into my account in multiple transactions each month. Could you clarify if this is standard practice with the property management company?"

As the management contract is ending soon, I am preparing to manage the property myself. I have a few questions about the transition:

1. Since I'll be taking over in the middle of the tenant’s lease, what actions do I need to take with the previous property manager?
2. How should the contract be handled moving forward?
3. What is the best way to officially inform the tenant about the management change?
4. Do I need to draft a new lease with the tenant, or can I continue with the existing one?
5. How should the security deposit be managed in this transition?
6. What specific responsibilities does the previous manager have to ensure a smooth handover?
7. Lastly, would it be better to introduce myself to the tenant as the owner, or as the new property manager?

Thank you for your assistance.

[Arvand Sabetian]

If there's missing rent based off the 10% I'd request a breakdown of everything. Usually, this would be in the form of a rent roll and contains everything related to your property related to vacancy, rent collected, expenses, fees, etc.

Since I'll be taking over in the middle of the tenant’s lease, what actions do I need to take with the previous property manager?

Depending on your situation, you may want to consider having the tenants sign a new lease. Before taking any action, make sure to request all pertinent info on your existing tenants. The property manager should provide a copy of the existing lease agreement, rent roll, other related documents, and notify the tenants of a change in management.

You should also be aware of any specifics outlined in the lease for your tenant's situation (e.g., pets).

How should the contract be handled moving forward?

You will want to consider having the tenants sign a new lease agreement if you believe that's necessary based on the existing lease agreement.

If you're referring to your agreement with the property manager, make sure there's no additional costs or hidden fees.

What is the best way to officially inform the tenant about the management change?

Phone call with email follow up or email so there's a paper trail. You'll also want to make sure the tenants know where they will be paying or sending rent to moving forward once the change has been made.

Do I need to draft a new lease with the tenant, or can I continue with the existing one?

You can continue with your existing one, but may want to consider having a new one drafted.

How should the security deposit be managed in this transition?

The property manager should transfer those funds to you. Those funds should be held in a separate account.

What specific responsibilities does the previous manager have to ensure a smooth handover?

They should notify the existing tenants and let the know to expect contact to be made by you.

Lastly, would it be better to introduce myself to the tenant as the owner, or as the new property manager?

As the owner or landlord you may be able to build a more personal connection with the tenants. In some cases, anonymity is healthy, but this depends on your preference.

[Marylyn Patankar]

Quote from @Arvand Sabetian:

If there's missing rent based off the 10% I'd request a breakdown of everything. Usually, this would be in the form of a rent roll and contains everything related to your property related to vacancy, rent collected, expenses, fees, etc.

Since I'll be taking over in the middle of the tenant’s lease, what actions do I need to take with the previous property manager?

Depending on your situation, you may want to consider having the tenants sign a new lease. Before taking any action, make sure to request all pertinent info on your existing tenants. The property manager should provide a copy of the existing lease agreement, rent roll, other related documents, and notify the tenants of a change in management.

You should also be aware of any specifics outlined in the lease for your tenant's situation (e.g., pets).

How should the contract be handled moving forward?

You will want to consider having the tenants sign a new lease agreement if you believe that's necessary based on the existing lease agreement.

If you're referring to your agreement with the property manager, make sure there's no additional costs or hidden fees.

What is the best way to officially inform the tenant about the management change?

Phone call with email follow up or email so there's a paper trail. You'll also want to make sure the tenants know where they will be paying or sending rent to moving forward once the change has been made.

Do I need to draft a new lease with the tenant, or can I continue with the existing one?

You can continue with your existing one, but may want to consider having a new one drafted.

How should the security deposit be managed in this transition?

The property manager should transfer those funds to you. Those funds should be held in a separate account.

What specific responsibilities does the previous manager have to ensure a smooth handover?

They should notify the existing tenants and let the know to expect contact to be made by you.

Lastly, would it be better to introduce myself to the tenant as the owner, or as the new property manager?

As the owner or landlord you may be able to build a more personal connection with the tenants. In some cases, anonymity is healthy, but this depends on your preference.

Absolutely agree with you here! It’s unfortunately common for property management agreements to have those hidden fees, but I’m proud to say that my approach is all about integrity and transparency, and I'm sure many others are too. I’d love to connect further on this topic and offer any advice if you need it. Wishing you the best in your self-management journey, but remember, a good property manager can still be invaluable, especially if you’re not familiar with the legalities of property management.

[Adam Bartomeo]

Unfortunately, this is the norm in the industry and why we have been successful. Owners often don't realize the 40+ charges that can be hidden in the contract. 

1. Have them transfer security, advanced rents, rent rolls, contact info, keys, leases, and any other pertinent data.

2. You have to follow the lease in place and can write a new only upon renewal.

3. Just give them a call and let them know that they will pay you, you will handle all maintenance, and any other concerns.

4. See 2

5. It is normally kept in a separate bank account in the state where the rental is located.

6. Almost zero but normally they play nicely.

7. I always tell owner to let the tenant know that they are the owner. If they find out the truth later, it will cause distrust and resentment. The problem is that most owners are push overs and need an excuse to hold tenants accountable.

[Karen Oduok]

I am so sorry that you are dealing with this. Unfortunately is not as uncommon as it should be. Hoping you get this resolved soon and can find an integral company to partner with.

[Dawn Brenengen]

If they hold a real estate license, and in most states they must to manage property for others, you can report them to the real estate commission in your state. 

[Bob Stevens]

Quote from @Jenny Kang:

Here’s a refined version of your message that maintains your original questions and concerns while improving clarity and flow:

Hello,

Since January, I haven't received the full rental payment from the property management company. This is my first rental property, and I'm already having significant issues with them. They initially told me I didn't need to review the contract, as it was solely between the management company and the tenant. However, I recently discovered that I'm missing about one-third of the rental income, and no explanation was provided. ( Actually, I just checked my account to get money: 10/2 $500, 10/17$700, 10/28$500).

Originally, I understood that the management fee would be 10% of the rental income. However, I’ve noticed additional charges that weren’t initially explained, and the rental payments are deposited into my account in multiple transactions each month. Could you clarify if this is standard practice with the property management company?"

As the management contract is ending soon, I am preparing to manage the property myself. I have a few questions about the transition:

1. Since I'll be taking over in the middle of the tenant’s lease, what actions do I need to take with the previous property manager?
2. How should the contract be handled moving forward?
3. What is the best way to officially inform the tenant about the management change?
4. Do I need to draft a new lease with the tenant, or can I continue with the existing one?
5. How should the security deposit be managed in this transition?
6. What specific responsibilities does the previous manager have to ensure a smooth handover?
7. Lastly, would it be better to introduce myself to the tenant as the owner, or as the new property manager?

Thank you for your assistance.

 You 100% do NOT need a PM if you have a team on the ground. Have the tenant pay you directly. Have a Maintenance guy ready to take care of any issues. Legal issue simply give to your attorney.  I am now handling all my props myself saving let's just say a few bux each month., 

[Jenny Kang]

Sounds like good plan! Definitely I will do. 

[Jenny Kang]

Thank you for your detail answers! 

[Jenny Kang]

Thanks! 

[Jenny Kang]

Agreed. For the property, Management company is the key!! Thanks! 

[Kevin Epp]

Being a landlord isn't rocket science if you're on the ground. It will be a learning curve if it's your first one. Stay up to date on all laws, federal down to local. Best of luck.

Since I'll be taking over in the middle of the tenant’s lease, what actions do I need to take with the previous property manager?

Contact PM. In writing, exit contract. Request all deposits (security, last month's rent, etc) back to you - in writing.

How should the contract be handled moving forward?

Lease stays as is. Sign a new one upon renewal.

What is the best way to officially inform the tenant about the management change?

Call them. I'd do it sooner than later. The PM could notify them before you and will make it a hassle with telling them what's going on. More confusing.

Do I need to draft a new lease with the tenant, or can I continue with the existing one?

Existing.

How should the security deposit be managed in this transition?

PM transfers it to you. Put it in separate account for only security deposits.

What specific responsibilities does the previous manager have to ensure a smooth handover?

Give you money, notify tenant.

Lastly, would it be better to introduce myself to the tenant as the owner, or as the new property manager?

Introduce as owner.

[Bob Stevens]

Quote from @Jenny Kang:

Agreed. For the property, Management company is the key!! Thanks! 

 NO, you do not need PM, IF you have a team in place.