Despite ongoing price increases, Vancouver boasts a low rental vacancy rate of just 2.7%. So, if you're a Vancouver landlord or considering investing in real estate in this city, you can look forward to ongoing income from your rental properties.The secret to maximizing your investments lies in finding the right property manager for your needs. If you buy a property with a management team in place, you're under no obligation to continue with their services.Keep reading for more about how to transition to a new property management company and what happens when property management changes.
Why Choose a New Property Management Company?If you own several Vancouver properties, it makes sense to have one management company oversee them all. This is one of the most common reasons to change property managers when you buy a new house.Some investors hire one property management firm only to discover it isn't a good match for them. The following are some reasons why landlords decide to choose a new property management company:
Cost-Related IssuesYour contract should outline the property management fees and the services they include. Unexpected fees or increasing costs without a valid explanation are red flags for landlords.Always compare property management services in terms of value rather than price alone.
Legal ConsiderationsOccasionally, a landlord might discover that their property manager hasn't complied with certain laws. For instance, property managers must collect and account for security deposits according to the Residential Tenancy Act.They may also be guilty of contractual infringement for not fulfilling their obligations as outlined in your contract.
Property Maintenance IssuesWhen you hire a property management company, you expect them to uphold the value of your investment. They should keep up to date with routine maintenance and see to repairs promptly.If your property management firm allows your property to become run-down, you'll experience difficulty keeping tenants and incur extra expenses.
High Tenant TurnoverTenants tend to come and go in rapid succession during times of economic stress or if the neighborhood deteriorates. Otherwise, it's your property management firm's job to keep your tenants in place for as long as possible.If you're having difficulty getting your tenants to commit to lease renewals, it's time to consider a change.Keeping your tenants happy is one of the reasons to hire a property manager. Frequent tenant complaints are a sign that your property management team isn't performing as they should.You should review all tenant complaints and investigate any unresolved issues.
Bad TenantsBad tenants are worse than no tenants. These individuals repeatedly pay their rent late, don't take good care of your property, and disregard the terms of their leases.They may even carry out illegal activities on your property. If you have bad tenants renting a property from you, it's a sure sign that your property manager didn't complete adequate background checks.The best property managers carry out rigorous, legally compliant tenant screening processes.They conduct regular property inspections to safeguard your investment. They ensure your tenants meet their lease obligations.
Old-Fashioned SystemsThere are many technologies available to property managers nowadays. This software helps streamline and refine their tasks and also helps reduce the costs involved.Property management software ensures accurate record-keeping and accounting.Online portals are an excellent way to manage convenient rental payments. They're also convenient for maintenance requests and tenant communications.Written checks and snail mail have no place in modern-day property management.Committed property managers embrace the latest technology to help make things easier and more cost-effective for both landlords and tenants.
Poor CommunicationYour property management team should provide you with regular updates concerning your property. If you never hear from them or struggle to contact them when necessary, it's time to switch to a more responsive company.Routine status reports, instant messaging, and access to the information you need are integral parts of effective modern property management.
Transitioning to New Property Management ServicesEnding your relationship with a property manager is always a little awkward, even if the previous owner hired them. Change can also cause anxiety for your new tenants.To ensure a smooth transition, it's important to research prospective new property managers before you make a move. Having a clear course of action will help put your tenants at ease and make the transition easier for you, too.Your first task is to check your property management agreement to make sure you go about termination correctly. In rare instances, the contract may have a clause that requires you to pay fees until the end of the agreement.Property managers who are confident in their service levels rarely use this tactic.Most contracts allow you to terminate the agreement if you have just cause. The agreement should define what this means.Sometimes you might have to pay a cancellation fee to get out of the agreement. You'll most certainly need to put your request to cancel the service in writing.Be sure to check how many days' notice you must provide.If you've bought a property with a property management agreement in place, you needn't consider these aspects. In this case, you haven't signed an agreement with them.Once you've broken the bad news, your new property management company should work with your existing one to ensure you leave on good terms and to ensure a smooth transition.These two entities will work together to hand over all the necessary information related to your properties.
Transferring the Necessary DocumentationYour new property manager needs access to a wealth of information to assume management of your investment property. Some of the documents they'll need for tenant-occupied homes include:
- Tenant information form with their contact details
- Copies of rental applications and supporting documents
- Signed lease agreements and addenda
- Copies of all keys and security information
- Accounting records reflecting all income received from the tenants
- A tenant ledger
- Copies of tenant correspondence
- Move-in inspection photos and reports