If you think that once you’ve acquired a leaseholder that you’re safe, think again. Property management companies – often called block managers – are losing clients as fast as they can gain them, and it is costing them big!
Breaking the contract is the main reason leaseholders are able to end their agreements with property managers. Tenants scour the small print looking for ways in which the manager has breached the contract and then use that as grounds for ending the tenancy.
So what causes are people finding to end their tenancies and ‘kick out’ a bad property management company, and how does the process work? We spoke to LevelUP Property management in Milton Keynes to find out how.
Finding Out Whether There Is A Cause To Terminate
Most leaseholders begin by scanning the contract (or getting a legal professional to look over it for them), looking for whether any terms allow them to cancel on the spot. If there aren’t, then the next step is to find out the conditions under which they’re permitted to end the contract and see if they meet any of them. Usually, they’re listed in the agreement.
If there is a cause to terminate, the tenant will most likely target this. The property management company may ask for a 60 to 90-day notice as a standard item in the contract. Most tenants will observe that notice period, but the more disgruntled may insist on more immediate action.
Terminating The Contract
Terminating the contract may not be a straightforward process. Tenants may opt to set up a Right To Manage or RTM company. Right to Manage is only available to flat leaseholders – not houses. If the tenant opts to go down this route, there are still several important issues to consider and resolve before service of the notice, if the takeover of management is to be completed.
Property management companies then have to provide leaseholders with a termination of the contract in writing. The document proves that the termination request is complete and that the tenants are free to end their agreement on the date specified after the given notice period.
Property managers then inform leaseholders that there will be a change in property manager in writing. The agent must then handover any funds paid by the leaseholder to the new property manager, along with a statement of accounts.
How to Avoid Tenant Complaints
Going through a situation like this is not in the interest of the property management company or the tenants. So what can property managers do to avoid tenant complaints?
Stay On Top Of Maintenance
Tenants want to know that they’re getting a good return for all the money they spend on ground rent. If they see that you’re on top of repairs and carry out maintenance promptly, then they will have few grounds for complaint. On the other hand, if the roof is caving in and there are problems with the plumbing, you can find that their patience runs out fast.
Failure To Communicate
Property management companies also need to regularly communicate with their leaseholders, showing them the value that they bring to their living arrangements. Ideally, you want to provide all your tenants with a full list of work carried out and detailed, itemized expenses for how you’re using their money.
Finally, always take a professional tone when dealing with tenants. Respond to complaints rapidly and responsibly, and always use certified and approved local contractors for carrying out work.