PROPERTY OFFBOARDING

Thank you for allowing Holland Properties to serve you

Table of Contents:

Oregon non-renewal laws
Selling and Working with your Real Estate Agent
If there is no tenant
If there is a tenant
Completing the Sale when there is a tenant
With no tenant changes
With intent of tenant changes
Owner or immediate family member moving into the property
Transferring management to the owner
We terminate management of your property
You transfer management to another property manager
Timing considerations for return of Property

Oregon non-renewal laws

This page is for property owners that are considering or in the process of ending management services on one or more of their properties. If termination is due to property sale this page should be shared with the real estate agent.

There are many reasons why a management contract may be terminated and the process can be started by either the management company or the owner. These scenarios could occur either with or without a tenant living in the home and the process will be different in each scenario as outlined below.

See your management agreement for any close out fees that will be charged and the timeline for notice in writing. We will perform a final accounting close out. If notice was given to us after we started advertising and showing the unit we will charge for any associated costs.

Tenants have always had the option and right to occupy through the end of their lease but in 2019 the Oregon laws on how you can terminate tenancy changed. Regardless of annual or month to month lease you may not non-renew a tenant that is past their first year of tenancy unless the tenants are in violation of their lease agreement or one of these 4 exceptions:

Owner intends to demolish the home.
Owner intends to undertake repairs or renovations that would make the home unfit or unsafe for habitability.
Owner or immediate family member intends to occupy the home.
Sold to a buyer who intends to occupy the home.

You have the option of negotiating a cash for keys agreement with the tenant. They may accept a financial incentive to move early. We can not advise you on what amount will be accepted but offers of 1.5 to 2 months of rent or more are common. We suggest you work with your real estate broker or attorney to draft the offer as that is outside the scope of normal property management.

Timing: Please see the section about 'Timing considerations for return of Property' at the bottom of this document.

Selling and Working with your Real Estate Agent

Upon selecting a real estate agent share their contact information with sales@hollandprop.com

We may advertise your property to our other investors in our monthly email and on our website.

If there is no Tenant:

Once the tenant has moved out we will complete our inspection and maintenance steps as outlined below in the section about 'Timing considerations for return of Property' at the bottom of this page.
Once inspection and maintenance task are completed we will mail the keys to your agent as long as you provide us with their address. If we have no address for your agent then keys will be mailed to the owner's current address.

If there is a Tenant:

When we are notified that you are selling we will inform the tenants.
Upon request, we can ask the tenants if they are interested in purchasing the home first.
There will not be a lockbox on the home, so entry needs to be coordinated between your realtor and the tenant.
We will share the tenant's name and contact info with your realtor and they can work together to find times when the tenant is home to allow the realtor, photographer, inspectors, showings, and other vendors related to the sale in the home.
Remember your realtor and others will be entering someone´s home and the utmost respect toward the tenant must be undertaken.
If professional photos are to be taken, our recommendation is that a minimum of 1 week notice be given to the tenant.
For a walk through, showings or inspections our recommendation is that your realtor reaches out a minimum of 3 days before the event. Sometimes it will take a day or more to hear back from the tenant.
In some situations, a good option is to set up specific showing windows during the week with the tenant ahead of time.
Your agent must be present at the property anytime another vendor enters that is arranged by your agent.
If your real estate agent is not comfortable working directly with the tenant or the tenant does not wish to be home during these visits or does not reply to communication effectively we may need to be involved. While not ideal, we will need to be the middle person to coordinate with your realtor.
Our Leasing dept will send a 24 hour notice plus 3 days to enter.
We will have a team member present to allow entry if the tenant can not be home.
There will be a charge of $25 for each notice sent and an hourly charge equivalent to our current handyman rate for any time we are at the property.
Since an additional party is involved with this method, scheduling will be more challenging and delays could happen.

Note: If the home is being sold with the tenant be sure your real estate agent has experience with this type of transaction. The laws are complex. If you would like a referral to agents with this experience reach out to us.

Completing the sale when there is a tenant

With No Tenant Changes: Selling to an investor with no lease termination? Here is what we will do to help with a smooth transition:

We will have already updated the tenants of your initial decision to sell the home.
Your agent has worked with the tenants as outlined in the section above
Once the sale is progressing we'll inform the tenants of any future change in management.
We will electronically send the new owner or their property manager, lease documents, any important tenant letters/violations and ledger and mail security deposit, and keys.

With Intent Of Tenant Changes: Selling to a buyer who intends to occupy? Here is what we will do to help with a smooth transition:

We will have already updated the tenants of your initial decision to sell the home.
Your agent will continue the process of selling the home as outlined in the section above.
Once there is an accepted offer, the buyer and their agent can choose an option to pursue:
Ask the tenants if they would agree to vacate early with compensation (1 - 1.5 times the monthly rent is most common)
Send 90 days termination notice (plus 4 days for mail). *We cannot legally give notice to terminate their vacancy until there is an accepted and signed offer. At that point, we can send the notice to vacate and proof of the accepted offer to the tenant. Please note tenants have the right to occupy through the end of their lease. If you (the seller) own more than 4 properties in total (personal or rental), there is a 1 month relocation fee owed to the tenant when the notice is sent.
As applicable, negotiate terms for an agreement to vacate early with compensation. Depending on how much notice is offered in the agreement and the tenant's moving flexibility, will directly impact if they can sign an agreement with a set vacate date, or an open ended agreement, which only offers compensation if they are able to vacate by the agreed upon date.
We will electronically send the new owner or their property manager, lease documents, any important tenant letters/violations and ledger and mail security deposit, and keys.

In all cases:

If the tenant's lease is due to expire during the time the home is on the market work with us on if you would like a new year lease or month to month lease.
Rents will not be split between the buyer and seller by us. We will pay rents to the existing owner that we are under contract with at time of rent collection and any prorated rent splits need to be handled in escrow.

Timing: Please see the section about 'Timing considerations for return of Property' at the bottom of this document.

Owner or immediate family moving into the property

If no tenant: With 60 days notice of contract termination we will perform a final accounting and mail the keys.

If tenant: Give us plenty of notice and we will send the tenants a 90 day (plus 4 days for mail) non-renewal notice, effective upon their lease expiration date. This applies to both long term and month to month leases. If you need the property sooner, you may consider offering the tenants a 'cash for keys' agreement described above.

Timing: Please see the section about 'Timing considerations for return of Property' at the bottom of this document.

Transferring management to the owner

Property management is getting more and more complicated with a never ending stream of new laws. In fact Oregon is currently the only place with statewide rent cap laws and see the section above on the new laws for 2019 but if you want to take on management yourself just give us 60 days notice of termination in writing or as stated in your management contract. We will get you all the tenant and property information, perform an accounting close out as well as transferring keys back to you by the end of the 60 day period.

We terminate management of your property

If we have given you 60 days notice to end your management contract you will need to decide who is going to manage your property and let us know so we can transfer everything over to them before the end of the 60 days. There will be no changes to the terms of the lease for the tenant.

Transferring management to another property manager

Send us notice in writing per your management contract. Have your new property manager reach out to us 30 days ahead of the termination date and we will work with them directly to transfer everything over.

In consideration of the tenant and in order to give time for notices, changing payment location, compiling paperwork, transferring keys, security deposits etc. We expect that the new PM will reach out to us at least 15 days before the transition. Their waiting until the last moment does not constitute an emergency on our part.

The entire process can be handled securely between companies and there is usually no reason for the owner to be involved other than for giving notice. There will be no changes to the terms of the lease for the tenant.

Timing considerations for return of Property

Timing on tenant Vacating

If the tenant is planning on moving on a specific date due to notice given by either them or us expect that things can be held up. Escrow for a purchase can be delayed or the apartment they plan on moving to isn't ready or we have a winter storm or any of a million other things can delay their move.

While we could go to court and get an eviction judgement and have the sheriff remove them this is not usually an effective way to deal with the situation. Any delays are normally temporary and usually related to a problem with where they are moving to. Please leave room in your schedule.

Timing for Inspection and Maintenance

Once the tenant has moved there are some actions we will perform before handing the property back to you. Depending on the property, the condition it was left in, and what you your future plans for it are, this timeline will change. You have a choice of what services we will provide once the tenant has moved out as outlined below. Some steps are required at every move out, these include:

Inspection scheduled for 1-3 business days after move out
Sharing the inspection with you on the owner’s portal
We will review the inspection and match it against prior inspections to determine responsibility for the needed repairs
We will create the tenant deposit return letter and return outstanding deposit

Our default process is that we fix tenant related damage, charge the tenant appropriately and you handle other repairs including wear and tear.

If you would like we can make a conservative estimate of cost of tenant damages, return that money to you, and you handle all aspects of reconditioning. This would commonly be done in a situation where you are remodeling or doing other work on the property where fixing tenant damage would not matter.

In all cases return of keys occurs once we have completed our part of maintenance and you have settled any outstanding charges. We can not guarantee any specific timeline this can be due to property condition, weather, vendor availability, workload variables, vacation schedules etc. Please do not schedule your timing so tight that a delay causes an emergency for you. This is property management and we are dealing with lots of people and lots of schedules, anything and everything can go wrong...