Five Things We Check When Taking Over a Property From Another Manager

Changing property managers should be relatively straightforward for a property owner. Behind the scenes, however, there is quite a lot that needs to happen.

When Xclusive takes over the management of an existing rental property, particularly one with tenants already living in it, we don’t simply receive a set of keys and start collecting the rent.

We want to understand exactly what we are taking over. That means checking the tenancy, the property, the paperwork and anything that may have been left unresolved.

Here are five of the most important things we look at:

The first thing we want to understand is the tenancy itself.

We review the tenancy agreement and confirm the basic details, including:

• Who the legal tenants are
• Whether the tenancy is fixed-term or periodic
• The current weekly rent
• When the rent was last increased
• The bond held
• Any agreed conditions relating to the tenancy
• Contact details and addresses for service
• Any approved pets or additional occupants

We also look for any variations or agreements that may have been made since the original tenancy began. This matters because sometimes an arrangement has changed over several years, but the paperwork hasn’t necessarily kept pace.

We don’t like assumptions. When we take over a tenancy, we want to know exactly what has been agreed between the owner and tenant from the beginning.

This is an important part of any management transfer. We confirm the bond details and make sure the bond record is transferred correctly to the new management. We also establish exactly where the tenant’s rent is sitting on the date of transfer:

• Are they paid to date?
• Are they in advance?
• Is there a small arrears balance?
• Are there outstanding tenant invoices or agreed payment arrangements?

Even a small discrepancy can become confusing several months later if it isn’t identified at the time of handover. The aim is to have a very clear starting point as from the day we take over management, we want both the owner and tenant to know that the financial records are correct.

Taking over a property also means taking responsibility for managing its ongoing compliance. We review the information available for the property, including Healthy Homes documentation, smoke alarm information and other relevant tenancy records. We don’t simply assume that because a property has previously been professionally managed, everything is automatically current.

• Properties change.
• Standards change.
• Equipment gets replaced.
• Documents become outdated.
• And sometimes information is simply missing.
• If there is something we believe needs further investigation, we raise it with the owner.

For us, this isn’t about creating unnecessary work. It is about knowing what we are managing and making sure the owner isn’t unknowingly carrying a risk that could have been identified earlier.

One of the most useful documents when changing property managers is a good inspection history. We review the most recent routine inspection reports, entry condition report, maintenance records and any photographs available. We are looking for patterns.

• Has the same maintenance issue appeared in several inspection reports?
• Has something been noted but never followed up?
• Is there deterioration that may need attention?
• Are there signs that preventative maintenance would be sensible before a small problem becomes an expensive one?

We also want to establish a clear picture of the property’s condition when it comes under our management. That protects everyone. If a mark, damaged item or maintenance issue was already present before Xclusive took over, we want that documented.

This is probably one of the most important parts of a management handover.

We ask a simple question: Is there anything currently unresolved?
That might include maintenance that has been reported but not completed, an insurance matter, an outstanding invoice, an upcoming lease expiry, a tenant request, a rent review or something the owner has been waiting for an answer on.

A change of property manager shouldn’t mean those things disappear into the handover.We want to know what is sitting in the background so that nothing gets missed. Sometimes there is very little to deal with, and other times, taking a fresh look at the property identifies several things that would benefit from attention. Either way, the owner knows where things stand.

We also think carefully about the tenant experience during a management change.

For a good tenant who has been living happily in a property for several years, suddenly receiving notification that there is a new property manager can be unsettling. Our intention is to make the change as straightforward as possible. We introduce ourselves, provide the information they need, explain how rent and maintenance will be handled going forward and give them a clear point of contact. The tenancy itself hasn’t suddenly become a different tenancy simply because the management company has changed, for the tenant, it should feel organised and professional.

We sometimes speak to landlords who have been unhappy with their property management for a long time.

• Calls aren’t being returned.
• Inspection reports don’t tell them very much.
• Maintenance seems reactive rather than managed.
• Their property is vacant for too long.
• Or they simply no longer feel confident that anyone is really watching their investment.

But they stay because changing property managers sounds difficult. In most cases, it really isn’t, as a good incoming property manager should manage much of the handover process for you.

The important thing is not simply transferring the management, It is making sure that when the property changes hands, someone takes the time to understand exactly what they are taking over.

Even when a property has been well managed, a fresh review can be useful.

We may notice something that deserves attention. We may see an opportunity to improve the property’s presentation or rental performance, or we may recommend doing absolutely nothing because the tenancy is working perfectly well. That is also a good outcome.

Changing property managers shouldn’t be about finding problems for the sake of finding them. It should be about making sure your property is being managed with care, good systems and attention to detail.

At Xclusive Property Management, that’s what we want an owner to feel when we take over their investment.

We know what we’re managing, we know where things stand, and we know what needs to happen next.

If you’re considering moving your rental property to Xclusive, you don’t need to wait until the tenancy ends or the property becomes vacant.

We regularly take over properties with existing tenants in place and manage the transition between property management companies. We do it all on your behalf.

If you would simply like to understand how the process works before making any decision, you’re welcome to talk to us.

Xclusive Property Management