Can You Change Property Managers Mid-Lease?

You’re the proud owner of a rental property, but your current property manager just isn’t living up to your expectations. The good news is, you don’t have to wait until the lease renews to make a change.

In this guide, we’ll show you how to switch property managers mid-lease, minimising any issues.

From understanding termination clauses to navigating notice periods, you’ll have the tools to ensure your investment property is in the right hands.

Is It Possible to Change Your Property Manager Mid-Lease?

Contrary to a common misunderstanding, you’re not bound to keep your current property manager until your tenant’s lease renews.

You have the freedom to change property managers mid-lease in Australia. Remember, your management and tenancy agreement are distinct.

However, you’ll want to check if you’re under a locked contract. If so, you might incur termination fees or liquidated damages, often around 50% of management fees.

Now, as a property investor in Queensland, don’t worry; switching property managers isn’t as tricky or costly as you might imagine. Typically, you’ll just need to give your current property manager a 30 days notice before making the change.

Will Switching Property Managers Mid-Lease Inconvenience Your Tenant?

Switching will be a win-win for both you and your tenant. If you’ve been struggling to communicate with the current agency, chances are your tenant has been facing similar challenges. For your tenant, the only thing that changes is where they send their rent.

Reasons to Change Property Managers Mid-Lease

You likely have multiple valid reasons for contemplating a termination with your property manager mid-lease. Here are some key factors.

Communication Issues

Facing communication problems with your current agent can disrupt your organisational workflow. Whether it’s slow responses or just plain misunderstandings, it’s not ideal for managing your rental property effectively.

Maintenance Issues

Nobody wants maintenance problems left unresolved. If your property management company is dragging its feet when it comes to fixing things or scheduling routine inspections, it can hinder your property and rental income.

Lacking Market Knowledge

Your property manager should know all the ins and outs of the local rental market. If they lack the know-how to maximise your investment property’s potential or adapt to market changes, it’s time to reconsider.

Better Alternatives

Sometimes, you find out that there are better property management companies out there offering more suitable services with lower rates. If they promise improved communication, maintenance handling, and market expertise, it’s worth considering. It’s also possible for a landlord to manage a property, but of course they then take all the responsibility.

Staff Turnover

Frequent staff changes at your property management company can lead to confusion and inconsistency. You want a team that sticks around and knows your property inside out.

Legal Framework for Changing Property Managers Mid-Lease

Navigating the legal framework when considering a change in a property manager mid-lease is crucial to ensure a smooth transition without any unexpected hiccups.

Review Your Existing Lease Agreement

The first step is to carefully review your lease agreement with your current property management company.

This document outlines the terms and conditions of your relationship, including any provisions related to the termination or transfer of property management services.

Legal Grounds for Changing Property Managers

In Australia, you generally have the right to change property managers mid-lease, as the management agreement is separate from the tenant’s lease.

Nonetheless, you need a solid argument for making the change, such as those we discussed earlier, like poor communication or maintenance issues.

Procedures and Timelines for Notifying and Transitioning

Regardless of the reason for the change, you must adhere to the legal procedures and timelines for notifying your current property manager and initiating the transition.

It typically involves providing written notice, often within a specified period, to both your tenant and your existing property management company.

4 Steps to Change Property Manager Mid-Lease

As a property owner or investor, changing your property manager primarily depends on the termination clause. In most cases, the process is straightforward and includes the following steps.

Step 1: Review the Contract

Start by checking your property management contract. Look for those termination clauses. They’ll determine the switching process between property management firms.

Pay close attention to the notice period mentioned in your contract. It’s often a specific number of days. It’s how long you need to notify your current property management company before making the switch.

Step 2: Communicate the Change

Once you decide to change, communicate with your current manager. Send them written notice, following the terms outlined in the contract. It ensures you’re playing by the rules.

Step 3: Choose the Alternative

As you’re in the process of ending the current arrangement, now is the time to research and choose a new property management firm. Find one that aligns with your needs and goals as an investor.

Step 4: The Handover

Ensure a smooth handover of responsibilities between the old and new property managers. It can include transferring tenant information and any ongoing maintenance or rent collection processes.

The previous property management service must also provide the keys to your property. Make sure your current tenant is well aware of the process. Overall, here are the essential documents you’ll need during the handover process.