Property Management Takeovers: How to Avoid the Most Common Communication Disasters in 2025

Oct 23, 2024

As the founder of pmXcite, I've noticed a significant trend in 2024: there's been a substantial increase in tenanted properties moving between agencies. While Business Development Managers often celebrate these takeovers as instant income, property managers face a unique set of challenges that, if not handled correctly, can quickly spiral into nightmare situations.

Let me share a recent case study that perfectly illustrates what not to do – and more importantly, how to get it right.

The Tale of a Takeover Gone Wrong

Recently, a friend of mine (let's call him Rob) found himself caught in a property management takeover situation. Despite being a model tenant for eight years, paying rent on time, and maintaining the property beautifully, his experience with the new property manager turned into what I can only describe as a complete disaster within just two weeks.

The Background:

  • Long-term tenant (8 years)
  • Previously managed privately by two different owners
  • Excellent payment history
  • Below-market rent due to being a reliable tenant
  • Property well-maintained with no outstanding issues

Where It All Went Wrong

The property manager's approach to this takeover created an unnecessary battle, and it all stemmed from poor communication. While she followed all legal requirements (issuing correct notices and following procedures), she missed the most crucial element: building rapport with the existing tenant.

Here's what happened:

  1. She made the tenant wait two hours during an inspection window
  2. She spent minimal time inspecting the property
  3. She announced a significant rent increase ($100/week) without proper context
  4. She delivered this news casually in the driveway
  5. She became defensive when questioned about the increase
  6. She sent a lease with incorrect property details

The Right Way to Handle Property Management Takeovers

Based on this experience, here's my proven framework for successfully managing property takeovers:

1. Make That Initial Phone Call

Here's a script I recommend:

"Hi [Tenant Name], it's [Your Name] from [Agency]. [Owner's Name] mentioned they spoke to you about the change in property management. I wanted to introduce myself and arrange a time to visit the property and meet you in person. Would [Day/Time] work for you?"

2. Set Clear Expectations

During that first call:

  • Explain the inspection process
  • Discuss any potential changes (like rent reviews or lease renewals)
  • Provide agency contact information
  • Invite questions and concerns

3. Professional First Meeting

When conducting your first inspection:

  • Arrive on time!
  • Take time to properly inspect the property
  • Engage with the tenant professionally
  • Document everything thoroughly
  • Listen to any concerns or maintenance issues

4. Follow-Up Communication

After the inspection:

  • Send a welcome pack with agency information
  • Provide clear contact details
  • Outline any next steps
  • Address any identified issues or concerns

Key Takeaways for Property Managers

  1. Recognise that existing tenants didn't choose your agency
  2. Understand that first impressions matter enormously
  3. Focus on building rapport before making any significant changes
  4. Communicate changes professionally and with the proper context
  5. Document everything thoroughly from day one

Remember the Three T's of Communication:

  • Technique (how you communicate)
  • Timing (when you communicate)
  • Tone (the way you communicate)

Conclusion

Successfully managing property takeovers isn't just about following legal requirements – it's about building relationships and maintaining professional communication from day one. By following these guidelines, you can avoid unnecessary conflicts and create positive relationships with your inherited tenants.

Want to learn more about effective property management communication? Visit pmXcite to discover our comprehensive resources and templates designed to help property managers build stronger relationships with their clients.

Ready to enhance your property management communication skills? Join The PM Club at pmXcite for access to our complete library of templates, resources, and our exclusive owner newsletter.

Signing off till next time!

Terri Handy