When should I tell property owners I am selling my property management company?

In a property management company the property owners are the customers, and their management agreements are most of what a buyer wants. That makes the timing of telling them a real decision. The general answer, for any business, is in when to tell staff, customers, suppliers and your landlord. Here is the order for this industry.

Property owners come first

Owners should not learn of the sale from someone else. Many sellers speak to the largest owners in person once a buyer is serious, then write to the rest. Check what each management agreement says about a change of control or assignment. Your lawyer can read those terms and tell you whether an owner has to consent to the change.

Then your staff

Property managers, leasing staff and maintenance coordinators often have close relationships with owners and tenants. Tell them early enough that they hear it from you, and plan with the buyer what to say about roles and pay. A rumour that spreads before the plan is ready can unsettle both staff and owners.

Tenants and maintenance vendors

Tenants mainly want to know who to call when something breaks and where rent goes. A short, clear note near closing is usually enough. Vendors who do repairs and cleaning want to know they will keep being paid on the same terms. Ask your lawyer whether any notices must be given in a certain form or time.

Before you speak to anyone

• Is a confidentiality agreement signed with the buyer?
• Have you agreed with the buyer what will be said, and by whom?
• Which owners hold the largest share of your work?