Switching property managers: Easier than you think
Ever thought about switching property managers? Your agent might make it seem complicated, but in reality, it’s just two steps for you as an owner:
Sign a management agreement with your new agent
Give your new agent the details of your current property manager so they can provide notice of termination for you and collect the property file
That’s it! Want to know more? Let’s dive into some frequently asked questions and how to ensure a smooth changeover.
Things to consider
What if it feels awkward to give notice?
If it feels uncomfortable notifying your current property manager, don’t worry – your new agent will handle this for you. They’ll give the required notice on your behalf and make the transition smooth. If you prefer to give notice yourself, keep in mind that you don’t need to give a reason for your decision.
Are there any exit fees?
Most agencies don’t charge exit fees. Instead, they have a notice period for terminating the agreement. It’s always worth double-checking for any hidden costs before making the switch. Some management agreements have long notice periods (e.g. 90 days). While notice periods help agencies cover their fixed costs (like staffing and office expenses), it’s worth negotiating a reduced notice period upfront if possible. You might not always get a shorter one, but it’s worth asking to ensure more flexibility.
What if the tenant pays rent to the old agent by mistake?
Your new agent can reach out to the old one and have the rent transferred to their trust account. If needed, the previous agent can refund the tenant so they can pay the correct account. Real estate trust accounting laws are strict around this, with severe penalties for breaches, so there’s little risk of issues.
Will I be charged another letting fee when switching agents?
No, switching agents doesn’t mean paying a second letting fee. At Evoak, there are no fees involved in changing agents.
Can I switch agents when my tenant is in a fixed-term lease?
Yes. You can change agents anytime, whether your tenant is in the middle of a fixed-term lease or on a month-to-month agreement. The lease with your tenant stays intact.
What if my property is vacant between agents?
Some management agreements have exclusivity clauses that could entitle the previous agent to a leasing fee even if the property is rented by the new agent. While most agencies won’t enforce this, it’s something to look out for when switching. When signing a new agreement, consider negotiating to remove this clause to avoid potential double fees.
Will the change affect my tenant?
Likely, your tenant will be relieved if you’re leaving a poor property manager. The only real change for them will be where they pay rent and who they contact for maintenance issues. A good agent will make the transition smooth and help keep your tenants happy.
Behind the scenes: What happens when you change agents
Here’s what really happens when you switch to a new property manager
1. Your new agent gives notice to your current agent:
Once you’ve signed with your new agent, they’ll notify your current property manager that you’re switching. They’ll ensure the correct notice is given, according to your existing management agreement (usually 30 or 60 days, sometimes up to 90 days).
2. Your new agent organises the handover:
Your new agent will liaise with your old one and handle all the paperwork and transfer of documents. Here’s what they’ll collect:
Lease agreement (plus any previous ones with the current tenant)
Ingoing report and photos
Signed ingoing report from your tenant
Routine inspection reports
Rent increase notices
Bond transfer details or forms
Keys to the property
Tenant ledger (generated on the day of handover to ensure all payments are up to date)
Tenancy application
Any other relevant documents, like pet approvals or outstanding maintenance issues
3. Your new agent will contact your tenant:
On the day of handover, your new agent will contact your tenant to introduce themselves and give them the new bank details to where they will pay rent moving forward. At Evoak, we like to book a routine inspection soon after the collection to see the property in person, address any potential outstanding maintenance and meet your tenant face-to-face.
Ready to switch?
Switching property managers isn’t as tough as it sounds. With the right preparation and a good new agent on board, the whole process can be quick and easy, leaving you with peace of mind and, hopefully, happier tenants.
If you’re ready to make the switch, we're here to guide you through every step.
