As a real estate investor or landlord, your property manager plays a crucial role in managing your properties and tenants. However, there may come a time when you need to part ways with your property manager. Whether it’s due to a lack of communication, poor performance, or simply a desire for a change, breaking up with your property manager can be a challenging decision.
In this blog, we’ll discuss how to give notice and move on, including understanding your contract, preparing to give notice, giving notice, and what to expect afterwards.
Understanding Your Contract
Before giving notice to your property manager, it’s important to understand your contract. Your contract should outline the terms of your agreement, including the length of your contract, the fee structure, and any specific services that were agreed upon.
It’s essential to pay attention to the termination clause in your contract, which outlines the process for ending the agreement. There may be specific conditions that must be met, such as a notice period or a fee for terminating the contract early. Make sure to review these terms carefully before giving notice to your property manager.
Preparing to Give Notice
Before giving notice, you’ll need to prepare by finding a new property manager or deciding to manage the properties yourself. Research potential property managers who have experience in managing properties like yours and reach out to them with a list of questions to determine if they’re a good fit for your needs.
(If you would like a copy of our resources 20 QUESTIONS EVERY INVESTOR SHOULD ASK THERE PROPERTY MANAGER, get in touch and we will organise to get a copy of this to you!)
Once you’ve found a new property manager, review their contract carefully and compare it to your current contract. Make sure you understand any differences in fees, services, or terms, and consider whether the new property manager is the right fit for you and your properties.
Giving Notice
When it’s time to give notice to your property manager, it’s important to do so professionally and respectfully. Start by writing a termination letter that includes the following information:
- The date you’re giving notice
- The reason for termination (optional)
- The specific terms of your contract that allow you to terminate
- Any final tasks or obligations you have under your current agreement
- Contact information for your new property manager
Here’s a sample termination letter for reference:
[Your Name] [RE: Your Investment Address] [Date]
[Property Manager’s Name] [Property Management Company Name]
Dear [Property Manager’s Name],
I am writing to terminate our property management agreement, effective [Date]. I have appreciated your services and efforts on behalf of my properties and tenants. However, after careful consideration, I have decided to engage a new property management service.
According to the terms of our agreement, I am terminating our agreement in accordance with [Insert specific clause from contract]. I understand that I may be responsible for any outstanding obligations or fees as outlined in our agreement, and I am happy to discuss any final tasks or obligations that need to be completed.
I will be working with [New Property Manager’s Name] at [New Property Management Company Name], and they can be reached at [New Property Manager’s Contact Information]. Please forward any necessary materials or information to them.
Thank you for your time and efforts on behalf of my properties and tenants. I wish you all the best in your future endeavors.
Sincerely,
[Your Name]
After giving notice, there may be some final tasks or fees to take care of, depending on the terms of your agreement. Make sure to communicate with your former property manager to ensure a smooth transition, and follow up with any outstanding obligations or fees.
Breaking up with your property manager can be a challenging decision, but it’s important to do what’s best for you and your properties. By understanding your contract, preparing to give notice, giving notice professionally, and following up on any final tasks or fees, you can make the transition as smooth as possible.
Don’t be afraid to seek out a new property manager who can provide the services and support you need to succeed as a real estate investor or landlord.
Good luck!