How To Change Property Managers

Making the switch: how to change property managers

In WA’s bustling property market, efficiency and expertise are key. Sticking with a property management servicethat doesn’t align with your goals can be more than just a headache; it can be a costly misstep.

Whether it’s due to high tenant turnover, financial inconsistencies, or just that nagging feeling in your gut, recognising the signs that it’s time for a change is the first crucial step… and then comes all the rest!

Changing property managers can seem daunting, but it’s often the breath of fresh air your property needs to thrive. Here’s how to change property managers if you’re ready for something new.

Signs it’s time for a change

If you’re reading this article, chances are you’re already aware that it’s time for a change. But if you’re still a little unsure, here are some telltale signs that it’s time to make the switch.

• Poor communication: delays in responding to your queries or a lack of clear, consistent communication is a major red flag. Effective communication is key when it comes to property management, and you want to be kept in the loop. 
• High tenant turnover: if tenants are frequently moving out, it could be due to issues with the property manager – which can take its toll on your rental income stability. 
• Frequent tenant complaints: if you’re getting regular complaints from your tenants about maintenance issues, response times, or general management practices, this can be a pretty clear indication of poor service quality. 
• Lack of regular maintenance: neglecting regular property maintenance can lead to bigger, more costly issues down the line and suggest poor management. 
• Financial inconsistencies: errors or inconsistencies in financial reports, unexpected costs, or lack of transparency in billing and expenses are serious concerns. 
• Poor rent collection practices: difficulty in collecting rent or frequent delays in rent deposits to your account can be a sign of inefficient management. 
• Lack of proactive management: a good property manager should be proactive in addressing issues and seeking improvements, not just reactive. This includes reassessing rent payments and ensuring that pricing is on par with similar properties in the area. 
• Outdated marketing strategies: ineffective or outdated marketing strategies can lead to prolonged vacancies, and suggests that the property manager is not keeping up with current trends. 
• You feel stressed: your gut is usually right, and if you have a gut feeling that something just isn’t right, it’s a clear sign that your needs aren’t being met.

How to change property managers: step-by-step

1. Review your current agreement

The first step is making sure that by changing property managers, you’re not breaking any contract terms. Carefully review the terms of your agreement and look for any clauses regarding termination notice and any associated fees.

Most agreements require a notice period (often 28 days) for termination, so make sure you know this and plan accordingly.

2. Research and choose a new property manager

Research property management companies in your area and note what you want from a property manager. Reputation, services offered, fees, and client reviews are all great things to take into consideration. Once you find someone you like, you can get in contact and kickstart the process. Your new property manager can also help guide you through the transition.

As a side note, make sure your new manager is licensed and compliant with the Real Estate and Business Agents Act 1978 and the Residential Tenancies Act 1987.

3. Notify your current property manager

Keep communication professional and courteous! Send them a formal written notice to terminate your current management agreement, adhering to the required notice period. While you’re not under any obligation to provide reasons, it’s nice to provide some clarity on why you’re terminating your agreement. Be respectful when delivering this feedback.

When writing your formal written notice, make sure you include the following:

• Keep it formal, and set it out like a formal letter. Address the letter to your property manager.
• Clearly state that you intend to terminate the property management agreement; state it in a simple and straightforward way.
• Reference the specific clause in your agreement that outlines the termination process and notice period. For example, “As per the terms of our agreement (Clause 5.2), I am providing a 28-day notice period for termination.”
• State the effective date of termination
• Request written confirmation of receipt of the termination notice
• Briefly outline your plan for transition and the transferring of documents

4. Transition administration 

Arrange for all relevant documents to be transferred to your new property manager. This might include leases, tenant information, financial records, keys, and more. You’ll also want to make sure that all financial matters with your old property manager are settled, including final payments and transferring of rental incomes.

Having a timeline and list of key responsibilities when it comes to handover can be incredibly helpful.

5. Inform your tenants

Notify your tenants about the change in management. Provide them with the contact details of the new property manager and any other information you think might be relevant.  Your new property manager may do this as part of their procedure.

Times of change can sometimes be a bit stressful, so reassure your tenants that their lease terms remain unchanged and that the transition will be smooth.

6. Onboard your new property manager

Have a meeting with your new property manager to discuss your expectations, property specifics, and any ongoing issues or upcoming maintenance.

This is the time to set goals: clearly outline what you want from the partnership, what your expectations are, and how you want certain things handled, like communication frequency, financial reporting, and maintenance handling.

 7. Monitor the transition

Keep an eye on the transition process to make sure it’s smooth for both your tenants and the new management team. Be open to any feedback your tenants might have on your new property manager during the initial transition.

8. Review regularly

Open communication is essential moving forward. Talk with your new property manager regularly for ongoing support and management, and regularly review their performance to make sure they meet your expectations and adhere to the agreed terms.

Ready to make the switch?

It’s important to have a property manager who is aligned with your vision. At Semple, we’re all about nurturing properties and cultivating positive relationships with our clients and your tenants alike. With our end-to-end property management in Perth, low management per portfolio, high-quality tenant screening and more, we’re happy to help you through this transition and make sure you get what you want from your investment. Give us a call today!