There are numerous reasons why Landlords change property management company or letting agent. Many reasons are justified but could have been averted. A smooth handover is important to ensure your property can continue to be managed successfully.
How to change letting agents?
An agent should deal with handover in a professional and a competent and efficient manner. This should be carried out within the terms of the agreement and in an agreed timescale.
How to terminate a management agreement?
If an agent terminates your management, they should do so in writing, clearly stating when management will cease. They should also confirm when all relevant documents and monies will be handed over to the incoming agent. We recommend any handover data is handed over within 4 weeks of notice.
Landlords are also bound by the terms of their management agreement when it comes to removing an agent.
It can be counter productive trying to reduce the notice period. Adding a new agent into the situation in haste, without taking time to understand all the facts, can cause more problems. The outgoing agent may still be owed fees under the contracted agreement, and the new agent may not have the funds to start providing services.
Regardless of how the management has been terminated, it is really important the new agency appoints someone responsible for overseeing and coordinating the handover.
What information is needed when changing letting agent?
Other key issues that must be agreed, if not covered in the management agreement, such as ongoing litigation, disputes and arrears collection. Also, agree who will be dealing with these issues during and after the handover. It may not be a wise decision to ask a new agent to begin management with an ongoing court case.
Documents relating to the affairs of the Landlord should be handed back on request. Agents may need to keep copies for evidence at a court case several years after handover and may ask the new agents to sign an undertaking not to destroy relevant documents for an agreed period of time.
Our checklist of issues to consider when dealing with a handover:
- What notice and handover arrangements are set out in the current management agreement?
- Agree a date for handover of documents, keys and funds
- Check insurances
- Agree who will notify suppliers and contractors if appropriate
- Check any contracts which may be terminated specific to the outgoing agent/landlord eg energy contract deals
- Agree responsibility for collecting outstanding arrears or litigation
- Agree to a list of documents that will be handed over
- Agree the procedure for holding onto documents, if needed
- Agree to timetable for finalising statement of accounts and handling funds
- Notify tenants of when they should start paying the new agent and their contact details
Generally, a smooth handover in a professional manner is a successful one. It can be frustrating when the outgoing agent makes the process more difficult than is needed. Likewise, it is important to understand the difficulties faced when an incoming agent does not have the right information, all safety certificates and the history of the property. Keeping it professional is the key to a successful handover.