There may come a time when the management of the property will go back to an owner, or a change in management company, be made. Either way, this type of transition can involve multiple moving parts and requires clear communication in order to make the process as smooth as possible. Our goal with this guide is to help outline what to expect during the closeout process. We appreciate the opportunity to have worked with you and will do our best to complete the transition as best as possible for both owners and residents.
CLOSING ACCOUNT DATE
Industry best practices are to close out the account with a 30-day notice. While this makes it simple to understand on an owner’s side. It actually makes the accounting a bit harder for all parties: owners, residents, and management companies. The reason for this is that rent payments and expenses follow a full calendar month schedule. Because of this, our company best practice is that when an owner provides us their 30-day notice, we will close out the account on the last calendar day of the month the notice was provided. This makes it easier for all parties to plan accordingly so that the first of the following month, the resident makes payment to the owner or new property management company, making it easy to track. Please note that this will be the default unless agreed to separately.
NOTIFY RESIDENT
We will reach out to the resident and notify them of the change in management within one business day. We will provide the resident with the name, phone number, and email address as to their new point of contact.
LEASE & DOCUMENTS
All of the lease and addendums can be found in your Owner Portal. In addition, the resident’s contact information such as phone number and email will be found on the original lease.
KEYS
We will place all keys we have on file in the mail to the address we have on file for you within one business day of receiving notice.
SECURITY DEPOSIT
The security deposit we have on hand will be paid out to you along with your final owner distribution. Please note that we do not provide the security deposit to the new property management company.
1099
If the rent collected during the year is more than $600, then a 1099 will need to be issued for that tax year. Please note that you will be getting a printed copy in the mail to the address that we have on file. If your mailing address happens to change, it is your responsibility to update us so we can provide you a copy on a timely manner.
FINAL OWNER DISTRIBUTION & STATEMENT
We will process the final owner distribution and provide the corresponding owner’s statement by the end of the same month we are closing out the file. Please note that your owner portal will still be available for you to review even after you’ve closed your account. This means that all previous owner statements and copies of invoices can still be found through your portal, with the same username and password as previously utilized.
GARDENER & POOL TECH
If your property has a gardener and/or pool technician, it’s important to note that the month we received the notice would be the last month that payment has been made to them. This means that the next invoice due on the first of the following month would need to be paid by you or the new management company. This is to make sure that we can help close out your account the same month.
CONCLUSION
Closing out an account is an important process because it involves more than simply ending management. There are documents, funds, communication and timing that all need to be handled properly in order to complete the transition. We appreciate the opportunity we have had to work with you and wish you the very best as you move forward.
