Let your current property manager go if they’re not performing to your expectations. A good property manager should make your life as a landlord easy by responding to tenants or finding innovative ways to lower energy bills and save you money. As a result, it can be disappointing when they fall short of that standard, or worse, mismanage your finances and tenant relationships. In the long run, a bad property manager can cost you time, money, and even your peace of mind. Continue reading below for a guide on how to make it through an awkward transition after firing your property manager.
Top 3 Signs of Poor Property Management
High Vacancy Rates
Keep tabs on your vacancy rates to see how proactive your property manager is in ensuring your units stay full. Despite tenants having their own reasons for leaving, a high vacancy rate could also signal dissatisfaction with rental quality. Thus, it could be a sign your property manager needs to do more to keep renters happy. On the other hand, if your issue is that your units remain empty for longer than usual, it could show the property manager is a weak salesman or marketing strategist. As a result, your property might be falling under the radar of highly qualified tenants if their advertising and customer service skills need work.Inadequate Tenant Screening
Skip the hassle of dealing with difficult renters by prioritizing a thorough tenant screening. Apart from keeping your units full, it’s also essential for a good property manager to be mindful of the quality. If a tenant refuses to pay rent, causes significant damage, and requires legal proceedings to get evicted, it could cost you time and money down the line. That’s why frequently dealing with such renters can be a sign that your property manager is lacking in their due diligence and is making you sign lease agreements without a proper tenant screening.Poor Response to Maintenance and Repairs
Ensure your tenants remain happy and satisfied with your rental arrangement by being readily available. If that’s not possible, your property manager should be able to step up when needed or even be the first point of contact to quickly handle maintenance and repair requests. Thus, it can be annoying when they’re hard to reach, slow to respond or don’t follow through with their promises to tenants. Not only does such behavior frustrate tenants, but it can also mar your reputation leading to more vacancies. That’s why it’s essential to not sweep tenant complaints about delayed responses under the carpet.
How to Fire Your Property Manager?
Notice Period Required for Termination
Review your contract for the required notice period before firing your property manager. After all, the last thing you want is to face legal fees and penalties over a staff that’s not performing. The typical range tends to vary between 30 - 90 days, but it would be best to look through the document both parties signed to be on the safe side. However, if your property manager has already breached the terms you both agreed to, you may have grounds for immediate termination. Remember, there are still good reasons to hire a property manager if your first one didn't work out.Procedures for Handling Security Deposits and Other Tenant Files
Avoid disruptions in your tenant management by ensuring there’s a proper transition process. If your manager hasn’t done anything to warrant their immediate resignation, it would be in your best interest to ensure there’s a smooth transfer of all tenant and property-related information before they leave. These documents could include lease agreements or payment records. It’s also a great idea to conduct a financial audit to ensure every dollar is accounted for before tax season arrives or tenants raise a dispute over their security deposit.Important Considerations when Finding a Property Manager
Experience
Opt for a professional who has the right expertise to handle your business in your absence. For example, a property manager with a good grasp of the local market can be an asset in filling up your units and minimizing vacancies. Another area of expertise you should inquire about is their tenant screening process. Are they familiar with how to run background checks or draft a lease agreement? If you decide to transfer to a Chester property management company, ensure to provide the necessary documents for a smooth transition.Communication
Pay attention to how responsive a prospective manager is during the interview phase. If they’re slow to reply, it could be an indicator that your tenants will have a hard time reaching them. To be on the safer side, it would be best to ask about their availability. You can also set your expectations for communication, including how often you want them to inform you of daily activities and how to submit performance reports.Maintenance and Repair
Inquire about their attitude towards maintenance and repairs. For instance, you could ask if they have a network of contacts that can aid them when a tenant has an emergency. You also want to ensure that they are willing and able to negotiate with contractors to save you costs in the long run.Fees and Contract
Carefully review their fees to ensure you’re satisfied with their deliverables and services before you sign the dotted line. At this stage, you can compare prices and packages for different managers to choose one that fits within your budget and expectations.Conclusion
Preserve your real estate investment by firing your property manager when they perform below your expectations. If they’re having trouble filling your vacancies with quality tenants, it could be because they lack the right tenant management skills or don’t conduct a proper tenant screening. Aside from disrupting your cash flow, it could ruin your reputation as the property owner if they’re slow to respond to tenant complaints.If you feel your property manager is more of a liability, issue the appropriate notice period to let them. Remember to review your contract for clauses that could allow you to terminate them immediately when there’s a grievous offense. Create a timeline for the proper handover of important documents to ensure a smooth transition process. Then in your next search, hire a property manager with the right expertise, communication skills, and fees.
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