If your PM has committed a crime, fraud, lacks execution or is just a very poor communicator, you may want to consider replacing them. Firing your current PM and replacing them with someone new doesn’t have to be a nightmare. In this series, I’ll share 5 things you can do so that the change occurs in the best way possible.
One of the first decisions to make is, does everyone go or do some get to stay. Will you allow some of the former staff to stay under the new PM. A great way to make this determination is to have the new PM interview and vet the current staff. After the interviews and vetting, let the new PM decide who stays and who doesn’t. Keeping some of the existing staff can be very helpful with the transition because they’re previous experience and knowledge on operating the property. However, if staff isn’t performing well let the new PM start with a new staff.
Be sure to give the new PM a unit list of completed and uncompleted renovation. Make sure every detail of each renovated and unrenovated unit is included. This information should include what the upgrades were made, which units are fully renovated, which are partially done, and which units haven’t been touched yet. Point being, you want the new PM to easily be able to pick up where the last PM left off.
This goes beyond saying, the new PM should immediately have access to all property financials. In order for the new PM to keep your property running at an optimal level of performance they need immediate access to the property’s P & L statements (current and historical), the current rent roll and leases (highlighting physical and economic occupancies, bad debt and delinquencies).
Be sure to provide the new PM with a comprehensive list of your current vendors for the property. Make the new PM aware of their roles & responsibilities and ask for replacement recommendations for them if you are not satisfied with the results you are currently receiving. Whether a vendor is kept on or replaced, letting the new PM know how each vendor is affecting your bottom line will help the PM in maximizing the property’s performance.
Like the list of vendors, the new PM will also need a list of all the contractors and contracts for every company that works on the property. This list will include the pool company, pest control servicer, landscaping company, security services, etc.
Are you interested in learning more about creating turnkey passive income and generational wealth through multifamily apartment investing? Visit www.syndicationcapital.net for more information, resources, frequently asked investor questions and our free e-book, “How to Passively Invest In Multifamily Apartment Syndications,”.