Cómo Cambiar de Compañía de Administración de Propiedades
If you own a rental property in Manta, Ecuador (or anywhere, for that matter) then you know it requires work and resources. In addition to coming at a cost, these things take time and experience in order to ensure positive results. Because of all this, finding and hiring a property manager is a necessity if you are an investor, especially if you do not live in Ecuador.
Si posee una propiedad de alquiler en Manta, entonces sabe que requiere trabajo y recursos. Además de tener un costo, estas cosas requieren tiempo y experiencia para garantizar resultados positivos. Debido a todo esto, encontrar y contratar un administrador de propiedades es una necesidad si usted es un inversionista, especialmente si no vive en Ecuador.
Having a team of professionals on your side provides you the peace of mind knowing that they will act in your best interests. It means everything to know that you have appointed people with knowledge and expertise who will manage the rental property in such a way that it will maximize your returns while providing a fully transparent window into their operations should you require it.
Tener un equipo de profesionales a su lado le brinda la tranquilidad de saber que actuarán en su mejor interés. Significa todo saber que usted ha designado a personas con conocimiento y experiencia que administrarán la propiedad de alquiler de tal manera que maximice sus retornos y proporcione una ventana totalmente transparente a sus operaciones si lo requiere.
Adversely, there are times when the experience is not so simple and stress free. One such time is when an owner or investor comes to find that they have made the wrong choice in their property manager and are dissatisfied with the results, or lack thereof.
Adversamente, hay momentos en que la experiencia no es tan simple y libre de estrés. Uno de esos momentos es cuando un propietario o inversor descubre que ha tomado una decisión equivocada en su administrador de propiedades y no está satisfecho con los resultados, o la falta de ellos.
The time comes when you need to begin looking for a new property manager. If you are like most investors or owners, just the thought of changing property management companies gives you a headache. You need to make time for scouting around to screen agents. Then there is the task of making the transition.
Llega el momento en que necesita comenzar a buscar un nuevo administrador de propiedades. Si usted es como la mayoría de los inversionistas o propietarios, solo pensar en cambiar las compañías de administración de propiedades le produce dolor de cabeza. Necesita hacer tiempo para explorar a los agentes de pantalla. Luego está la tarea de hacer la transición.
The research phase alone can feel like pulling yourself out of quicksand. This is why many owner/investors, no matter how unhappy they are, put off finding a new company even when they are unsatisfied with the results from the one they are in contract with. Unfortunately, the consequences of procrastinating on this important decision will compound exponentially the longer you wait.
It just so happens, however, that hiring a new property manager does not have to be inundating nor does it need to be stressful. It can be simple, straightforward and, most importantly, it can be handled by the new property management company from start to finish. You might only need to take a few calls and sign some paperwork.
Read below ⤵️ for 10 key steps and tips on changing property management companies in Manta, Ecuador.
La fase de investigación por sí sola puede ser como salir de las arenas movedizas. Esta es la razón por la cual muchos propietarios / inversionistas, sin importar cuán infelices sean, posponen la búsqueda de una nueva compañía incluso cuando no están satisfechos con los resultados de la empresa con la que tienen un contrato. Desafortunadamente, las consecuencias de postergar esta importante decisión se agravarán exponencialmente cuanto más espere.
Sin embargo, sucede que contratar a un nuevo administrador de propiedades no tiene que ser una inundación ni debe ser estresante. Puede ser simple, directo y, lo más importante, puede ser manejado por la nueva compañía de administración de propiedades de principio a fin. Es posible que solo necesite atender algunas llamadas y firmar algunos documentos.
Tips for a Smooth Property Management Handover
We have compiled a list of recommendations for those of you who are ready to appoint a new manager for your property in Manta. These are tips to ensure the property management changeover is as seamless as possible:
1. Provide the required notice.
Your management contract should contain a termination clause. Most contracts have a requirement of anywhere from 15 to 90 days prior notice before ending the agreement. Therefore, if you do not provide the required warning, it is possible that you will run the risk of breaching the contract. You do not want to expose yourself to penalties in case of a complaint or a lawsuit. Be on the safe side and follow what is written in the contract.
If you find that there are unexpected cancellation costs hidden in your current contract, feel free to contact Rent In Manta. We may be able to help guide you in the cancellation process with your current property management company.
2. Write the notice.
When you provide the notification, it should be in writing. You can arrange the termination yourself, but it is advised that you send it through certified mail. Request a return receipt, so that you have it on record the letter was sent, and the company received it. If your property is here in Manta and you are not, your new property manager should oversee the facilitation of this part of the process. Remember, in Ecuador the law states that all official documents must be in Spanish. Luckily, Rent In Manta provides necessary document translation services.
3. It should not be personal.
Some owners/investors have complaints about their experience with the former property management company. This can make it challenging to keep emotions out of the process. Your decision to terminate your contract with the manager is a business decision. Therefore, your focus should only be on the procedure. Look forward to the evolution of your investment and leave the past behind you. Learn from your experiences so as to prevent history from repeating itself. Do not allow anger to cloud your judgment.
4. Find out if there are hidden costs.
Some agencies charge a fee if the property owner or the landlord decides to terminate the contract early – even with the prior notice. If so, you should check what the company you worked with is entitled to before providing the notification. This way, you will be prepared for what is to come. You can then pay the manager for all the fees you owe him or her until the effective date of the contract termination.
If the fee is excessive or if the property management company has breached contract, don't feel like you're trapped. Some of these fees may be illegal. We can walk you through the process should you need help.
5. Inform your tenants.
It is essential that you ensure your tenants are correctly informed regarding the change in management. You can make a formal announcement by sending a written notice to your tenant. This part is significant so that they know who will manage them soon, including their rental deposits.
Again, this is something that you may want the new property management company to handle and we would be happy to write and deliver all correspondence on your behalf.
6. Allow some time for the fund transfers.
It may take some time for the transfer of all the funds from your account with your current property management company, and it usually depends on the current status of your account. You should expect the transfer to be completed in one to two months. Be sure that the former company has provided all payments to prior invoices before making the balance transfer. Security deposits of any current tenants should be transferred at the time you chose a new management company.
7. Make sure that you have copies of all the essential paperwork.
Your former agency should provide you with copies of all the documents, including leases, security deposit records, and statement of expenses and income. These papers should be given to you immediately upon the time you terminate the contract.
8. Explore Your Other Options
One of the most crucial steps to take is to find the property manager you would like to work with. Before you make the switch, have a list of the companies you think are qualified and give them a call. From there, you can ask them about certain aspects of the job, including:
Their services and what they can offer to your property
Their techniques in handling issues in managing properties
How they collect rent
Their methods in managing repairs
How they screen tenants
How they plan to market your property
9. Do Your Due Diligence
Gather as much information as you can to get a better look at the new companies. Your decision should be made before sending your termination letter to your former agency. If you are having a specific problem with your current company, such as poor communication or perhaps inefficiency in processing documents, you want to make sure you ask questions connected to that particular issue with the your new property manager. This way, you do not run into the same challenge again.
It helps that you set expectations at the beginning of the relationship. You should let the new company know why you are making the switch. Be concise and clear on the issues you faced with your former management company. Talk to your prospect about why the previous company did not meet your requirements or standards. Also share with your new company the things you happened to like about the way your previous company conducted business. There is no such thing as too much information in this case.
You should also let the new company know what you expect from your relationship with the property management and what can happen if those expectations are not met. You can even set a timeframe for the partnership be it 6 or 12 months. It should give you enough time to appraise how things are going, and you can address any issues so that they do not get out of hand. Be sure to ask to have any necessary revisions made to your new contract as some property managers will be willing to customize their contract, within reason, in order to meet your needs.
10. Be Careful!
As you search for a new company, you will find some that offer their services for less money. While you can save some cash in the short term, you should be cautious in signing up with them, especially if the firm focuses on other real estate services like construction or sales.
Be sure the company has an online presence dedicated to rentals and property management as that is a good way to determine if they are legitimate professionals. Often, you get what you pay for when dealing with rental properties and you can end up losing thousands of dollars instead of saving them, especially if you’re overseas.
A major misunderstanding comes when you expect a Property Manager and instead come to find you hired a Leasing Agent. One sure sign of this is when the agent claims to offer property management services for free or in exchange for 50-100% of the first month’s rent. This is sometimes half what you’ll pay to a good property manager over the course of a long term lease. Leasing Agents tend to pass on any property management responsibilities to someone else and generally do not keep organized accounts. Unless the tenant they bring you is a potential buyer, they will not be very easy to get ahold of in an emergency and this could lead to your tenant taking advantage of the property or having a negative experience.
Working with Rent In Manta, you will automatically gain access to our entire network of realtors and independent property managers throughout Manabí. We frequently exchange referrals in return for finders’ fees with a multitude of individuals and companies who we work with.
Let Us Do the Rest of the Work
Making the switch can be stressful. We take pride in helping our clients from Canada, the U.S. and other countries outside of Ecuador maintain peace of mind when it comes to their investment properties. We can assist you during the transition so that you are dealing with Manta’s #1 property management company from the very beginning!
We are looking forward to speaking with you!
The original article was discovered on American Dream Homes, Inc. website and adopted by the team at Rent In Manta for our clients during their time of need.
