Here are the primary reasons property owners choose to terminate their relationships with property management companies, along with tips to help you avoid these issues.
Hiring a property manager can be a significant advantage for your rental property. It grants you more free time and peace of mind, knowing that professionals are handling the maintenance.
However, there are times when things go awry, leading you to question whether your property manager is worth the additional expense. Below are some of the leading reasons property owners decide to part ways with their property managers, along with suggestions to help prevent these situations.
Poor Communication
Understanding how much communication property owners desire is our top priority at Andren Homes. Some owners prefer to be notified of every change, maintenance request, or minor tenant issue, while others only want to be contacted in emergencies.
Regardless of your preference, maintaining open lines of communication with your property manager is crucial. This is especially important when work is being done on your property or if there are tenant complaints. You should always feel informed about what’s happening in your home; when property managers fail to keep you updated, issues often arise.
Communication is vital not just in times of crisis but also during routine operations. You should receive updates when your property is listed on the market and when it is leased to new tenants. These small notifications can significantly ease your mind.
We've found that when owners feel neglected in terms of communication, they are likely to seek a new manager or revert to self-management. It’s essential to establish your communication expectations with your property manager from the outset. This clarity sets the tone for the relationship moving forward.
Maintenance Issues 
Ask any property owner or manager, and you’ll hear that both parties have faced termination over maintenance-related problems. Maintenance can be one of the most significant expenses for property owners, which is why many want to be kept informed about any maintenance issues that arise.
Some property managers implement what is known as a “maintenance threshold.” This means you authorize the property manager to perform necessary repairs without prior approval, as long as the costs do not exceed a specified amount.
Typically, this threshold is standardized across all clients, so it’s essential to consider whether this arrangement aligns with your comfort level before committing to their services.
Problems often arise when there’s a disconnect between the property manager's and the owner’s perspectives on what repairs are necessary. Disagreements about essential repairs can lead to the property manager terminating their relationship with the owner, or vice versa. This issue can also tie back to communication; if the property manager fails to explain why a repair is needed and why it incurs certain costs, the owner may not fully grasp its significance.
To avoid misunderstandings, it’s best to establish clear expectations right from the start. Discuss your needs with the property manager, inquire about average repair costs, and ask for estimates specific to your home. Addressing these issues upfront can save both you and the property manager from unnecessary headaches.
At Andren Homes, we advise our clients that maintenance and turnovers (preparing the property for new tenants) typically represent the highest costs. It’s wise to be proactive by setting aside funds for expected maintenance and emergencies.
Extended Vacancies
Vacancies can be a complex issue, closely tied to the property’s market value. Extended vacancies often occur because the home is priced too high for the current season, market conditions, neighborhood dynamics, or property features. However, accepting that your home may be priced too high can be challenging. After all, it’s your property, and you’ve invested time and resources into making it appealing.
When your property manager suggests adjusting your asking price, remember that their recommendation is not personal. They are just as eager as you are to get your home rented. Lowering the rent by $50-$100 can ultimately save you more money in the long run than enduring a lengthy vacancy.
Managing Expenses 
Engaging a property management service involves costs. You’re paying a monthly fee for them to oversee your property, in addition to any other fees you might incur—leasing fees, turnover fees, repair fees, etc. This can be a significant adjustment if you’re not adequately prepared.
When we take on a new property, one of our leasing managers visits the home to assess its condition and identify any repairs or minor fixes needed to make it rent-ready. These initial costs can range from a few hundred to several thousand dollars, which can catch many owners off guard, leading to disagreements over the necessity and costs of certain items.
The primary goal of a property manager is to rent your home quickly at the optimal price to attract quality tenants. The recommendations made during the make-ready or turnover process may be more costly than you anticipated, but they can significantly impact your home’s rental prospects.
If you’re reluctant to invest in these necessary repairs and replacements, it may create tension between you and your property manager.
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