If you’ve recently purchased on home from an individual owner, or are off-boarding from one property management Company to another…chances are, something WILL go wrong. “Believe half of what you see and none of what you hear” from the current owner or property manager. Not because they’re dishonest (because we hope they’re not), but because you to go into this situation both flexible and objective as possible. Your goal is to make this transition as smooth as possible. Every so often Monument will give you some experience-based advice, and this is one of those times. No fancy citations, just raw, experiential tips from our ten years of experience in the field. The goal is to help you avoid some avoidable mistakes. With that being said, here are a few pieces of advice to consider.
Over Communicate: There’s a high difference between nagging and making sure that all parties are well informed with regards to your expectations. We recommend making sure both the old and new property managers are in contact with one another. This tactic is helpful in ensuring that the former property manager is communicating what’s happening to the existing renter. Make sure they’ve informed the tenant of the sale, provided applicable contact information, and provided important dates to remember. The last thing anyone needs is for the renter to feel swindled. Most importantly, make sure they know that their rent/lease will not change.
Set Aside a Budget: Be prepared for your tenant(s) to tell you all about the maintenance issues that they now have or reported to the last owner. Don’t be afraid to explain that all work orders will be addressed, but in a reasonable AND attainable timeline. Whether you’re delivering information directly to the tenant or through your property manager, stick to your word and set this these clear expectations with tenant in advance. You’ll need to follow through later and referring back to that notice will prove helpful as you establish that professional relationship.
Lucky for you, any previous walkthroughs or city inspections should have revealed any significant issues in within the unit. Setting aside that budget and prioritizing the most crucial repairs will help foster a relationship with the tenant and support a smooth transition.
Bonus Tip: Investors often hold 10% in escrow after the closing, and the former owner won’t get the remaining funds until the existing tenant signs an executed lease. This is known to force the buyer (you) and the seller to work together.
Don’t worry, you’ve got this! In case you have any questions or need additional support we’re here to help. Visit www.monumentmgt.com to learn more about our property management services. #theinvestorsbroker