As a rental real estate owner, you may have opted to have a property management company do the heavy lifting for you. These companies certainly make being a landlord easier as they fulfill many tasks the owner would otherwise have to do themselves. These functions include finding and vetting tenants, collecting rent, and managing repairs and maintenance.
However, if you have decided that you want to try another property management company’s service, here is some advice:
Explore new options
Do not put the cart before the horse by terminating one company’s services before finding another to replace them. This might entail a month or two extra with your current company, which is better than having no one managing the property at all. When it comes to property managers in Colorado Springs, there are several local companies, such as All County Colorado Springs, CMRC and Evernest that can get the job done effectively and efficiently, sometimes at lower rates than larger organizations.
Do some online research or ask other rental property owners which company they use and whether they would recommend it. Another idea is to consult the real estate agent you used when purchasing the rental house. Alternatively, drive around the area your property is in and look for sign boards advertising which companies manage properties in that vicinity.
Get to the details
It is advisable to get the names of at least two alternative property management companies before you start making any moves. Reach out to them and set up an appointment with an agent who can discuss the company’s services and rates. If a company does not reply to your request for a meeting, strike it from your list and look elsewhere. A rental property management company needs to be responsive, and failing to set up an appointment sets a poor precedent.
After seeing representatives of at least two alternate rental property management companies, review what they offer and the price. Draw a comparison of both, bearing in mind that cost should not be your only consideration. Lower costs might equate to fewer services, adding more work to your load as a landlord.
Review the current agreement
Before going ahead and making the change, examine your current rental property management company and what it offers. Determine what has led you to start thinking about taking your business elsewhere. Is this a matter that could be sorted out, such as being assigned a new agent, or is the relationship irreparably damaged? Use this as a mechanism to double-check that you are doing what is best for you and your property.
If you decide to terminate your current agreement, examine the contract closely to determine how this process works. For example, how much notice should you give without incurring penalties? When does your agreement expire? If you are not in too much of a rush, you could let your current contract expire before moving to another Colorado Springs company.
Notify your old company
Advise your current property management company that you are terminating the agreement between it and yourself in writing. While you are free to do so via a phone call, follow it up with a written letter or email.
Ensure that you have confirmed that this correspondence was received to avoid any confusion about timelines. The best way to accomplish this is by sending the letter via certified mail with a signature receipt requested.
Get the legalities sorted out
Ensure that you have signed a contract with the new property management company with a clearly defined start date on which their services commence. If you are unsure about any clauses in this contract, discuss it with a company representative or contact an attorney. Read the fine print, so you are not caught unawares.
You need to inform state and local authorities about the change to a new property management company. A Colorado Springs property management company will assist you with any necessary paperwork so the process runs smoothly. Keep copies of everything you hand to authorities in case something goes missing during the process.