All Forum Posts by: Nadir M.

@Nadir M. Depends how professional the current PMC will be about the transistion.

First, have client get all leases.

Then rent ledgers.

Make sure you get a copy of their current management contract, so you understand the Termination requirements - you don't want to break any state agency laws and have the curent PMC file anything against you.

Make sure the client follows the Termination requirements BEFORE you take over.

Suggest the owner emails their Termination notice to current PMC and copies you on the email. Then you can respond to "All" and keep the owner abreast of how their current PMC is cooperating.

No more than 30 days before the Termination Date, you'll want to send an intro letter to the tenants. Be sure to CLEARLY state the date your company is taking over.

Hopefully, it goes smoothly.

@Nadir M.,

Transitioning multiple units from one property management company to another can seem overwhelming, but with the right process in place, it can be smooth for all parties involved—owners, tenants, and both PMCs. Here’s how we typically handle the transition for a seamless experience:

1. Communication with the Current Property Management Company

• First, establish open communication with the outgoing PMC to coordinate the transfer of information and documents. Request a full handover of tenant files, maintenance records, current lease agreements, rent rolls, and security deposit information. Make sure they provide all relevant financial data, vendor contracts, and other important documentation for the properties. It is best to provide them with a checklist of items you are requesting.

• Ensure that notice is provided in accordance with any contractual obligations or terms with the current PMC, to avoid any conflicts.

2. Transfer of Leases and Tenant Information

• Review the existing leases to ensure compliance with local laws and assess any terms that may need to be adjusted. Typically, existing leases remain in place until their expiration, and the new PMC assumes responsibility under those agreements. We typically do new leases with any acquired tenants at their next lease renewal.

• Communicate with tenants early in the process, introducing your company as the new property manager. Provide them with contact information, a new rent payment portal (if applicable), and an overview of any changes to procedures.

3. Update Payment Processing

• Work with tenants to transition their rent payments to your system. Ensure that all deposits, rental payments, and other financials are correctly transferred, including any past due amounts or credits that may be in place.

• Coordinate with the former PMC for the transfer of security deposits, ensuring they’re accounted for and properly transferred into escrow. Then provide the required notices to the tenants that your company is now holding their security deposit funds in escrow.

4. Maintenance and Vendor Transitions

• Review current maintenance requests and contracts with vendors. If the former PMC had specific vendor agreements, confirm their terms and see if they can continue under your management, or transition to your preferred vendors.

• Make sure any outstanding repairs or maintenance issues are addressed as part of the transition.

5. Property Inspections

• Schedule property inspections to evaluate the current condition of each unit and ensure that you have a clear understanding of the properties you’ll be managing. Document any deferred maintenance and address it promptly.

6. Ongoing Tenant Communication

• Provide tenants with clear, consistent communication throughout the transition period to reduce confusion or anxiety about the change. Keep them informed of any changes to policies, maintenance requests, or rent collection.

7. Final Reconciliation

• Ensure that all financials are reconciled between the outgoing and incoming management companies, including security deposits, rent payments, and any fees. A final settlement statement should be agreed upon to ensure no discrepancies.

This process ensures that the transition is efficient, minimizes disruption for tenants, and allows you to take over the management of the units with all the necessary information at hand.

I hope this helps, and best of luck with the transition!

Best Regards,

Stephanie Michael

Hello Nadir,

Before I begin management of a property that has a hot tub, I instruct the homeowner to remove it or I will be unable to manage. They are not worth the trouble. I allow for tenants to use gas fireplaces, but do not permit tenants to use any wood burning fireplaces.

Without hearing the conversation its often hard to gauge the objective...she could be fishing for you to pay, she could be venting, she could be complaining thinking you could do something, or she could just be making conversation...who knows!

I'm often not quick on my feet, but my response would be something along the lines of, I'm glad you were able to find a service hopefully they're successful in taking care of the issue for you. Unless she expressly states she wants to know what you're going to do, or says you're responsible then I wouldn't engage. 

As far as what you're responsible for; nothing. This sounds like a SFR and if so it is typical that the tenant is responsible for these kind of items. If it's something major like termites then of course it should be your responsibility but normal every day pests is theirs to address.

 You should redesign your site to look more professional.  Start from the bottom and grow through meetups and real estate groups.  Go and help people with advice, as a property manager here and on the reddit forums. Post on social media (Tiktok, Youtube, Instagram, Twitter, etc.) with PM videos, tips and tricks on how to manage their properties and why a PM, such as yourself, can be of great value.

Hi @Nadir M.,

You can start with some character reviews from people you have done business with in the past. They can talk about how it was to work you, how you are trustworthy, and do what you say you are going to do. Don't have them say they did an investment deal with you if they didn't. I hope this makes sense.

Have you thought about doing a joint venture with another investor? As part of the deal you might be able to negotiate a review.