How to Change Property Managers in Ontario: Notice, Handover and Tenants

Yes, you can change property managers, and the first place to look is your management agreement, which sets the notice, exit terms and handover duties. In most cases a switch does not touch the tenancy itself, because the lease is between you and your tenant. The work is moving contacts, rent and records to the new manager in writing, on a planned date.

Can you fire a property manager? Read the agreement first

Your relationship with a manager is a contract, so the contract sets the exit. Before you say anything to anyone, find these clauses and note the dates.

• Term and renewal. Does it roll over automatically, and by what date must you object?
• Ending without cause. Is it allowed, how much written notice does it need and how must the notice be delivered?
• Ending for cause. What counts as cause, and does the manager get a chance to fix the problem first?
• Exit fees. Is there an early-exit charge, and does the manager keep placement or renewal fees tied to tenants it found?
• Handover duties. What records, funds, keys and data must the manager return, in what format and by when?
• Tenant non-solicitation. Does anything stop the new manager from working with your current tenants?

The numbers are in your agreement, not in this post. If a clause is unclear, ask a lawyer before you send notice. Our post on management contracts in Ontario explains what each clause is meant to do.

If you are ending the agreement for cause, write down the problems with dates first. Keep the record factual.

How to change property managers, step by step

1. Set your end date. Month-end usually works best because ledgers and statements close cleanly.
2. Line up the next manager first. Agree the new scope in writing before you end the old one, so the property is never unmanaged. Questions to ask a property manager will help.
3. Send written notice to the current manager, in the way and on the date the agreement requires. Keep proof of delivery.
4. Request the handover in the same letter: records, funds, keys, open work and a final statement, with a date for each.
5. Tell your tenants in writing (details in the next section).
6. Hold a handover call with both managers on it, using a checklist.
7. Review the first month. Check that rent was received, receipts were issued, and open repairs moved over.

Can you change property managers mid lease?

Yes. A fixed-term or month-to-month tenancy carries on while the manager changes. Tenants need to know who to contact and where rent goes, and nothing else about their tenancy should change.

First check what your lease says. Ontario's Residential Tenancies Act requires a written tenancy agreement to set out the landlord's legal name and address for notices, and the Standard Lease has a contact section for that address and a rent section that says to whom rent is paid. If your lease names you, your tenants keep the same landlord. If it names the outgoing manager's company as landlord or as the address or payee, speak to a lawyer or licensed paralegal about how to document the change before you act.

Then send a written notice, from you and the outgoing manager, that covers:

• the effective date and the new manager's name and contact details
• where to send maintenance requests and the after-hours number
• how rent is paid after the date, and a thank-you for continuing to pay as agreed
• a reminder that existing lease terms have not changed

Four rules to respect:

• Payment method stays optional. The Act says a landlord cannot require post-dated cheques or automatic debiting. If the new manager uses an online payment system, offer it, do not force it.
• Receipts continue. A landlord must give a free receipt for rent or a rent deposit on request. Keep one ledger across the cut-off date.
• Entry notice still applies. The new manager needs the same 24 hours' written notice, a stated reason and an entry time between 8 a.m. and 8 p.m.
• Pending rent increases. Rent increases need at least 90 days' written notice. Hand over every notice date so none is missed.

What to move to the new property manager

Ask for a signed handover list, with each item ticked and dated by both managers. A complete package usually includes the following. Share tenant details only as far as the new manager needs them to do the job.

• Signed leases, addenda and renewal dates for each unit.
• Rent ledgers, receipts and arrears records.
• Rent deposit amounts, dates received and interest paid. A landlord must pay interest on a rent deposit each year, so this record has to travel with the file.
• Any refundable key deposits, with keys, fobs and codes counted and signed for.
• Move-in condition reports, photos and inspection records.
• Open maintenance requests, work orders, quotes and warranties.
• Vendor contacts with their insurance and WSIB documents.
• Notices already served, with dates, and any Landlord and Tenant Board filings, orders and hearing dates.
• Owner statements, receipts, invoices and year-end summaries your accountant will need.

Also ask the outgoing manager to confirm in writing what money it holds for you, including rent received and deposits, and to send it with a final statement by an agreed date. Our guide to landlord record keeping shows what to keep and for how long.

Our post on transitioning to a property manager lists the documents a new manager will ask for.

Can you report property managers? Where complaints go

It depends on who is complaining and about what.

A tenant who believes a landlord or someone acting for the landlord has harassed them, changed the locks without giving them a new key, withheld a vital service such as heat or water, or collected money the Act does not allow can contact the Rental Housing Enforcement Unit, according to Ontario's page on rental housing offences. A tenant can also apply to the Landlord and Tenant Board. Under the Act, some tenant applications can be made about the landlord, a superintendent or an agent of the landlord, and the Act separately bars a property manager from collecting prohibited fees from tenants.

An owner with a complaint about a manager should start with a written notice under the agreement and ask for a written response. If it is not resolved, a lawyer can advise on the contract. If your manager holds a professional licence or registration, ask which body issued it, because that body will have its own complaint process.

This post gives general information only. For your situation, ask the Landlord and Tenant Board, a licensed paralegal or a lawyer.

Choosing the next manager so you do not switch again

Most switches happen because the scope was never clear. Ask the next manager to put in writing what it will do, what you approve, how often you will get statements and how tenant communication works. Ask how it will receive your records and how it will handle the cut-off date for rent.

D&D Property Management offers lease management and renewals, with renewal dates tracked and records kept in one place. It starts with a free consultation and a written scope that says which tasks it handles and what you approve. Compare any manager, ours included, with the questions in 10 questions to ask before hiring a property manager.

Questions owners ask about switching property managers

How much notice do I have to give a property manager?

Your management agreement sets it. Check the termination clause for the notice period, the way notice must be delivered and any early-exit terms. If the agreement is unclear or silent, a lawyer can advise before you send anything, and you should keep proof that the manager received your notice.

Can you fire a property manager without notice?

Only if the agreement allows it, usually for a stated cause. Read the cause clause, note whether the manager has a period to fix the problem, and keep dated records of what went wrong. If you are unsure whether the grounds meet the agreement, ask a lawyer first.

Do my tenants have to agree to a new property manager?

Tenants do not choose your manager, but they need clear written notice of who to contact and how rent is paid. Check whether the lease names the manager as landlord, address for notices or rent payee. If it does, speak to a lawyer or licensed paralegal before changing.

Can I change property managers in the middle of a lease?

Yes. The tenancy continues, and the lease terms do not change because the manager does. Give tenants written notice of the date, the new contacts and how to pay, keep the same receipts and entry-notice rules, and make sure rent increase and renewal dates are handed over.

Devon Moore, Operations Lead Co-Founder & Operations Lead — D&D Property Management

Devon Moore is the co-founder and Operations Lead at D&D Property Management, managing rental properties across Kitchener-Waterloo, Cambridge, Guelph and Waterloo Region.