Plenty of owners are unhappy with their management company's service but hold back because they're not sure how to actually switch. Here's the process, from cancellation through handover.
- Management agreements often specify a notice period for cancellation, so start by checking your current contract.
- Select a new management company by comparing scope of work and fees before signing.
- You'll need to notify tenants of the change in point of contact and the new bank details for rent transfers.
- Confirm that deposits, contract documents, keys, and other items are handed over without gaps.
- Timing the handover to match the rent-collection cycle reduces confusion.
What Prompts Owners to Consider Switching
Common reasons owners consider switching management companies include vacancies not getting filled, infrequent reporting or communication, slow response, or a sense that the service doesn't match the fee being paid. Rather than deciding purely on a gut feeling, it's worth organizing concrete facts — actual occupancy rates, a record of how responsive the company has been — before making the call. If you're hearing similar complaints from multiple owners, that can also suggest the issue lies with the management company's setup itself.
Start by Checking Your Current Management Agreement
Before considering a switch, first check your current management agreement to understand the notice period and conditions for cancellation. Many agreements specify how many months' notice is required before cancellation, and failing to honor that period can trigger a penalty. Be careful not to move ahead with a new management company before checking your current contract — doing so risks ending up in something like a double-booked situation.
How to Choose a New Management Company
When choosing a new management company, compare scope of work, management fees, reporting frequency and method, and track record on filling vacancies. Getting proposals from multiple companies and seeing what improvements they'd suggest for your current issues — vacancies, slow response, and so on — makes the decision clearer. Beyond the proposal itself, how easy it is to communicate with the assigned staff member is also an important factor for a long-term relationship.
How to Handle Cancellation and the Switch
Notify your current management company of cancellation according to the notice period specified in the contract. In parallel, work out the terms with the new management company and set a concrete handover schedule to minimize any gap in coverage. It's important to set a clear handover date so tenant response doesn't lapse. If you're switching during a busy season — the moving season, for example — build in extra time so tenant response isn't disrupted.
Notifying Tenants and What Needs to Be Handed Over
When switching management companies, you need to notify tenants of the change in point of contact, the new bank details for rent transfers, and any change in emergency contact. At the same time, make sure the lease agreements, tenant roster, deposit information, keys, and equipment inspection records are all handed over to the new management company without gaps. Listing out even the small documents — equipment warranties, inspection logs — and handing them over item by item helps prevent later disputes.
Points to Watch When Switching
Timing the switch to match the rent-collection cycle (start or end of month, for example) helps avoid confusion tied to the change in bank details. It also helps to document, in writing, the amount and timing of the handover of the deposit held by the previous management company — that prevents disputes down the line.
Frequently Asked Questions
Can I switch management companies any time?
You can switch as long as you meet the notice period specified in the contract. Failing to honor that period can trigger a penalty, so check your contract terms in advance.
Does switching disadvantage tenants in any way?
With a proper handover, tenants' lease terms themselves generally don't change. Careful advance notice about the change in contact and payment details matters.
How is the deposit handed over?
The deposit held by the old management company is typically confirmed and passed to the new management company or the owner. It's best to document the amount and timing in writing.
Summary
Switching management companies runs through checking your current contract's notice period, selecting a new company, notifying tenants, and handing over documents, keys, and the deposit. Working out a concrete schedule so there's no gap in coverage makes for a smoother transition.