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7 Reasons Why a New Property Management Company Took Over

As a tenant, the last thing you want is to deal with some new management shakeup that could mean increased fees. After all, navigating new websites and payment systems is difficult enough for older tenants. Your landlord likely hasn't reviewed his property management options as a way to spite you. Most of what a landlord does should result in retained tenants instead of higher tenant turnover rates. Instead, consider why they've brought in a new property management company and what that means for you.Here are seven reasons why a new property management company took over for the last one. 

1. Your Landlord Expanded Their Investment Portfolio

First of all, your landlord may be switching property management companies because their old one can't keep up with their investments. Not every management company has the resources to provide the required level of service. This is especially true if your landlord has expanded into commercial properties instead of just residential. They'll need a company that has experience running commercial properties and managing the relevant transactions. It's also a matter of scaling. Landlords hire these services when they can't manage their properties on their own. They upgrade to bigger property management companies when they need even more help. 

2. Lack of Communication

Your landlord may have hired a new property management company due to a lack of communication.Maybe the property owner had trouble getting in touch with the company and found out about issues much later than they should have. It's also possible that some of your fellow tenants put in maintenance requests that went ignored for too long. One example is if a tenant's heating turns off. Even if the reason is that their payment to the gas company never went through, it's the property manager's job to get to the bottom of the issue. They should act as the middleman when it comes to any disputes or issues on the property. 

3. An Increase or Decrease in Tenants

A new property management company may be needed if the landlord has increased their move-ins in recent years.The goal of a rental property is to accrue new tenants. However, landlords may run into issues with apartment complexes if they fail to take into account how many people they'll actually have to deal with. After all, apartment buildings are much different beasts than renting out houses. Finding new tenants and running background checks is another responsibility of a property manager. Your landlord may also want to change companies if they've seen a significant decrease in move-ins. This suggests that their current manager isn't doing their job well enough. 

4. Problems With the Previous Property Manager

There's a chance that your landlord has had some kind of personal dispute with the prior property manager or management company. This could be anything from changes in how they do maintenance, how they accept payments or even things the company has done outside of their service. Usually, a reliable property management company will work with a landlord to find some kind of agreement or compromise. Failing that, they're always able to end their service and pursue another provider. 

5. Increasing Costs

One of the biggest reasons why a landlord may choose a new property management company is due to increasing costs. In practice, landlords rely on these companies not only for convenience but also to cut costs. The company may get better deals on repairs or pest control. They may have a better process for vetting new tenants and filling vacancies. How much they cost will depend on market conditions, property type, and service requirements. As such, these numbers may rise throughout the years. While a client should be notified of the increase in prices well before they happen, it may encourage them to switch to another service provider.

6. Renter Complaints

The last thing you want is for a renter to make an official complaint with the Rental Housing Enforcement Unit. This could lead to various fines and penalties, as well as a conviction if you're found guilty of an offense. A property management company is meant to handle minor complaints before sending bigger concerns up to the landlord. However, what happens when this company doesn't give renters their full attention or pass along those concerns? If a landlord relies on this property manager, then they shouldn't have renters going over their heads to make complaints. That means there's a break in communications as well as a lack of attention by the property manager. The same applies to things like payment methods, home security, and more.As such, a new property management company should mean that renters will have a stronger voice when it comes to their rentals. It will also mean that your rental will feel safer and more like a home.

7. Outdated Operations

It might be that your landlord is switching to a new management company because they want a service provider who has more up-to-date operations. Some of the things a landlord expects include an online portal for maintenance requests. They want the tenants to be able to auto-pay just in case they forget to manually send in rent. These online portals should also provide documentation and information for both the landlord and tenants. Older companies may not have these technologies implemented or know how to implement them. They may only take things like written checks or send out documents via mail. It's only natural for a landlord to look into other companies that can meet their standards. 

Why a New Property Management Company Took Over

Why a new property management company took over for the old one is likely due to incompatibility with your landlord. It could be anything from disagreements regarding maintenance or raised costs of operations. At the very least, you can expect the new one to provide better services for you and your fellow tenants. If your landlord is interested in switching companies, then they should look into Axford Property Management. Our services include property management, real estate listings, and more. Contact us if you're interested in learning how we can help you.