How to Switch Property Managers in Minnesota

Switching property managers can feel like more trouble than it's worth, so many owners stay with a manager they're unhappy with for far too long. In practice, a well-run handoff takes a few weeks and your tenants barely notice. Here is how switching works in Minnesota, and what to make sure gets transferred.

Signs it may be time to switch

• Calls and emails go unanswered, or you hear about problems from your tenants first.
• Owner statements are late, unclear or don't match your bank deposits.
• Vacancies drag on, or rents fall behind the market.
• Repairs are slow, overpriced or done without the documentation you need.
• Rental licenses or city inspections slip through the cracks.

Step 1: Read your current management agreement

Find the termination clause. Most agreements require written notice (often 30 to 60 days), and some charge a cancellation or termination fee. Note any terms about who keeps the leasing fee, what happens to tenants the manager placed, and how and when records and funds must be returned.

Step 2: Choose your new manager and sign before giving notice

Line up your new manager before you notify the current one, so there's no gap in rent collection or maintenance. Ask how they handle takeovers and what they need from you and your current manager.

Step 3: Give written notice

Send notice in writing, following the method your agreement requires. Ask for a list of everything that will be transferred and the date funds will be released.

Step 4: Make sure these are transferred

• Signed leases and any addendums for every tenant.
• Security deposits, with accrued interest and a record of each tenant's deposit. Under Minnesota law, deposits earn 1% simple interest per year, so the records matter at move-out.
• Tenant ledgers showing rent paid, balances due and any late fees.
• Move-in condition reports and photos, which you need to support any future deposit deductions.
• Keys, garage openers and access codes.
• Maintenance history, warranties, and vendor and utility contacts.
• Rental license and inspection records for the city.
• Any funds held for you, such as reserves and undistributed rent.

Step 5: Notify your tenants

Tenants need to know who manages the property now, where to pay rent and how to request repairs. Minnesota law also requires landlords to disclose the name and address of the person authorized to manage the property, so update this when the manager changes. A clear, friendly introduction from the new manager keeps tenants calm and payments on time.

Step 6: Update your rental license

Many Twin Cities cities require you to update the manager or contact on your rental license or registration when it changes. Apple Valley, for example, requires an updated registration within 30 days, and Lakeville requires re-registration when the contact changes. Check your city's page for its rules.

Switching to Fuze

When you switch to Fuze, we coordinate the handoff with your current manager: collecting leases, tenant ledgers and security deposit records, introducing ourselves to your tenants, and updating city licensing, so rent collection and maintenance continue without a gap. Our agreement has no fixed term, and either side can end it with 60 days' written notice. Management is $130 per unit per month, with no management fee while a home is vacant. See our pricing for details.