Posted by By Paul Branton, Director of Investor Services for Home Rental Services
Switching property management companies is often expected to be a simple handoff—but in reality, it can be one of the most complicated transitions in the life of a rental property. When tenants are already in place, there are many moving parts, and for the transition to be smooth, both management companies must act professionally and cooperatively. Unfortunately, that’s not always what happens.
What Should Happen During a PM Transition
In an ideal world, the outgoing and incoming property managers work together to transfer all essential property and tenant information, including:
- Keys, garage openers, and access codes
- Leases and any amendments or renewals
- Tenant ledgers showing rent payments, credits, and charges
- Security deposit documentation and balances
- Maintenance records and warranties
- Vendor information and service contracts
When this information is complete and accurate, tenants experience little to no disruption with a seamless handoff between management companies.
Why It Rarely Goes That Smoothly:
In practice, transitions between property management companies are often incomplete or delayed. Some of the most common issues include:
- Missing or outdated leases that don’t reflect current terms
- Inaccurate tenant ledgers, making it difficult to verify balances
- Security deposits not properly documented or transferred
- Keys or access devices that are missing
- Unclear maintenance histories, leading to repeated or delayed repairs
Sometimes the outgoing company is unresponsive or no longer involved. Records simply weren’t maintained well to begin with and in the majority of cases, the transition is rushed due to strained relationships.
How Tenants Are Impacted
Tenants often feel the effects of a messy transition the most. Confusion about where to pay rent, who to contact for maintenance, or what their lease terms actually are can lead to frustration and mistrust—even when the new management company is acting in good faith.
This is why professional cooperation and clear communication matters. A lack of transparency or organization during the PM transition doesn’t just inconvenience managers—it directly affects residents.
What Owners Can Do to Help Ensure a Smoother Transition
Property owners play an important role in making management transitions more successful. Here are a few steps that can help:
- Request complete records before terminating a management agreement
- Confirm security deposit balances and locations in writing
- Allow adequate time for a proper handoff whenever possible (and avoid month end!)
- Choose a new management company that has a clear onboarding process
Our Approach
We understand that transitions are rarely perfect. When we take over a property, we do our best to reconstruct missing information, communicate clearly with tenants, and work professionally with prior management whenever possible.
Our goal is always to minimize disruption, protect the owner’s interests, and create stability for residents—even when the handoff isn’t ideal.
What to Expect When We Take Over Your Property
While every transition is different, our goal is always to create as much clarity and continuity as possible—for both owners and tenants. When we take over management of an occupied property, you can expect the following:
A Thorough Records Review
We carefully review all information provided by prior management (or the Owner), including leases, tenant ledgers, security deposit records, and maintenance history. If anything is missing or unclear, we work to identify gaps and document what we can moving forward.
Clear Communication With Tenants
Tenants are notified promptly of the management change and given clear instructions on:
- Where and how to pay rent
- Who to contact for maintenance and emergencies
- What stays the same and what may change
Our goal is to reduce confusion and establish trust early in the process.
Verification of Lease Terms & Balances
We confirm lease terms, rent amounts, and tenant account balances based on the documentation available. In cases where records are incomplete or conflicting, we take a conservative, transparent approach and communicate with both the owner and tenant to resolve any discrepancies.
Security Deposit Reconciliation
Security deposits are verified based on the information transferred to us. If documentation is incomplete, we clearly outline what has been received and how it will be handled going forward to ensure compliance and proper accounting.
Property Access & Maintenance Setup
We inventory keys, access devices, and known maintenance issues, then establish our vendor network and maintenance protocols, so tenants know what to expect when maintenance issues arise.
Ongoing Transparency
Throughout the transition, owners receive clear communication regarding any challenges uncovered, steps being taken, and next actions. We believe transparency is critical—especially when inheriting a property with existing tenants.
Closing Thought
Management transitions aren’t always easy, but the right approach can minimize disruption and restore clarity quickly. Our focus is on transparency, consistency, and protecting your investment—even when the handoff isn’t ideal. If you’re considering a management change or acquiring an occupied investment property, we’re happy to walk you through what to expect—just give us a call!
Home Rental Services Blog 