BUSINESS FUNDAMENTALS
PROPERTY MANAGEMENT
In Transition
A CHECKLIST TO TRANSITIONING PROPERTY MANAGEMENT
by Scott Glascock
P
and that rent is paid to a certain date.” It is always a good idea at any transfer of management that an Estoppel Statement be provided not only to validate the current rent and security deposit but also any exceptions outside the lease that have been granted. Whether you are receiving a property or handing off a property to another manager, these checkpoint items can significantly reduce any angst:
roperty managers often don’t allocate enough time to do a proper professional transition. Transfer of management will often bring about issues not previously identified but having a procedure in place for transitioning properties will help with these issues in a professional manner and will pay big dividends in the long run. Challenging tenants might seize the opportunity to mislead the new management on any number of items. Probably one of the most abused items that becomes contentious at transition is by the tenant who disputes the amount of funds owed from late fees, posting fees, utilities, or maintenance bills. Often, these same tenants will also state that there have been exceptions made for them in the past on different aspects of the lease. Keeping accurate, detailed records will make this much easier, and it will provide documentation for the new property manager or owner. One of the most useful tools available is the use of an Estoppel Statement. By definition in most states, an estoppel certificate is a “signed statement by a party certifying for another's benefit that certain facts are correct, that a lease exists, that there are no defaults,
1. Communication. Clear communication with the current management company is essential.
2. Closing/Transition Date. The exact time of closing and transition must be communicated and constantly updated to all parties, especially the tenants. 3. Estoppel Statements. The current management company should prepare an Estoppel Statement for the tenant(s) to sign prior to closing. An estoppel statement verifies the amount of monthly rent, any outstanding charges, and the amount of the security deposit.
30 | think realty magazine :: april 2020
Made with FlippingBook Online newsletter