Property Management Transition Checklist
When a community decides to change their property management company, it’s often due to a need for better service, value, or expertise. Once the decision has been made to switch, what does the process entail? Here’s a guide to help navigate the transition from your current property management to a new company.
Notifying Your Current Management
The first step is for the Board to inform the outgoing management company that their contract will not be renewed. The management contract will specify the required notice period, usually ranging from 30 to 90 days, so it’s important to give notice promptly.
Document Transfer
After notifying the outgoing company, they will prepare a list of materials and documents to be transferred to the new management company. This transfer is usually handled between the companies, but it's important to express any concerns you may have to both parties. The new property management company often has a dedicated onboarding team to ensure a smooth and timely transition.
Action Plan and Timeline
Many companies will start the transition by developing a tailored action plan for your community. This includes management and operational goals with a timeline and deadlines. A transition checklist is often used to ensure tasks are completed on time.
Key Transition Procedures
During the transition, several key procedures are typically followed:
- Reviewing all legal documents, contracts, and operating agreements
- Validating legal, compliance, and operational safeguards
- Analyzing financials, budgets, and reserve funds
- Verifying insurance coverage to prevent lapses in existing contracts
- Reviewing and negotiating service contracts with vendors
- Communicating with homeowners through welcome letters and events
- Providing regular updates to Board members
Continuous Improvement Opportunities
The transition process serves as a chance to enhance operating procedures, contracts, and plans for the new property. A dedicated transition team works with a thorough onboarding plan to efficiently meet core goals.
Assessing the Property
In addition to the standard procedures, the transition team assesses the property's baseline condition to identify any safety, aesthetic, or architectural issues that need addressing. Part of this process involves reviewing building staff and policies, creating job descriptions, preparing personnel manuals, and conducting staff training.
Goal of the Transition
The aim is to quickly implement tailored programs and provide high-quality service to ensure a seamless and worry-free transition. This foundation helps build strong, lasting relationships with Board members and residents.
