Switching property management companies in Michigan takes six steps: review your agreement, choose your new manager, give written notice, transfer records and deposits, notify tenants, and reconcile the final accounting. Done in that order, leases stay in place and rent keeps coming in.
The quick answer
- Read your management agreement for the notice period and any fees.
- Pick your new manager before giving notice.
- Send written notice and set a transition date.
- Transfer everything: leases, deposits, ledgers, tenant contacts, and keys.
- Notify tenants in writing how to pay rent and request repairs.
- Reconcile the final accounting.
Signs it is time to switch
Unanswered calls, confusing statements, unexplained repair bills, and long vacancies are common reasons owners leave. Many signs it's time to hire a property management company apply to the one you have, too. Considering managing it yourself? Compare self-managing vs. hiring a property manager or try our rental property savings calculator.
Step 1: Review your management agreement
In Michigan, property management runs under a written property management employment contract (MCL 339.2501), and it controls how you can leave. Check the required notice, any early termination or continuing leasing fees, and how quickly funds and records must be returned. If anything is unclear, have a Michigan real estate attorney review it.
Step 2: Choose your new manager first
Line up your new company before giving notice so there is no gap in coverage. Michigan treats property management as real estate broker activity, so verify licensing with the Michigan Department of Licensing and Regulatory Affairs (LARA). Ask whether they have handled takeovers, what all of their fees are (see property management pricing in Metro Detroit), and whether you can see income and work orders online. Our guide on how to choose a property manager has more questions, and our client testimonials show what owners say about us.
Step 3: Send written notice
Deliver notice exactly as your agreement requires and keep a copy. Include the properties, the effective date, your new manager's contact information, and a request to release records, keys, and funds. A start-of-month handoff keeps rent from being split between two companies.
Step 4: Transfer leases, deposits, and records
Your new manager needs:
- Leases, renewals, and addenda
- Security deposit amounts and where they are held
- Rent ledgers, balances, and prepaid rent
- Tenant contacts and move-in checklists and photos
- Keys and access codes
- Open work orders, vendors, and any pending notices or court filings
Protect the security deposits
Michigan requires deposits to be held in a regulated financial institution unless the landlord has filed a cash or surety bond (MCL 554.604), and tenants must be told in writing which institution holds their deposit (MCL 554.603). Confirm every deposit transferred in full and give tenants the updated information. You remain responsible for returning deposits even if the former manager mishandled them. See our guide to Michigan landlord-tenant laws.
Step 5: Tell your tenants
A management change does not, by itself, end or change a lease. Send each tenant a short letter with the new manager's contact information, the effective date, how to pay rent, how to request repairs, and where their deposit is held. Clear communication supports tenant retention.
Step 6: Reconcile and reset
Get a final owner statement and confirm reserves were returned, rent was disbursed, and prepaid rent and deposits were transferred. Then let your new manager inspect the property, check your rent against the market (see how to set rental rates in Metro Detroit), and apply strong tenant screening standards. If an eviction is underway, review the Michigan eviction timeline.
How JMZ Management handles takeovers
JMZ Management has facilitated hundreds of management takeover transactions, working directly with former managers to collect leases, deposits, payment history, and tenant information. Owners get a real-time AppFolio owner portal, disbursements between the 9th and 17th when tenants pay on time, and a 24-hour emergency repair hotline for residents. Our fee is 10% of monthly rent with a $100 minimum, with discounts for 3 or more properties (see our pricing page). Our Novi team manages 1,000+ properties across Metro Detroit.
Explore our property management services, rental owner FAQs, and free owner resources. Investing from out of state? Read about out-of-state investing in Metro Detroit.
Frequently asked questions
Can I switch property management companies in the middle of a lease?
Yes. In most cases the lease is between you and your tenant, so changing managers does not end it. Your management agreement controls when you can leave the current manager.
Do my tenants need to sign new leases?
Generally, no. Existing leases stay in effect.
What happens to security deposits when I switch?
They should transfer in full to the new manager, be held as Michigan's Security Deposit Act requires, and tenants should be told where they are held.
Does a property manager in Michigan need a license?
Michigan's Occupational Code (MCL 339.2501) includes property management in its definition of real estate broker activity. Verify licensing with LARA.
Can JMZ Management take over my property from another company?
Yes. We have handled hundreds of takeovers. Request a free rental analysis or call 248-284-6990.
The bottom line
You do not have to stay with a property manager who is not performing. Review your contract, line up your new manager, and account for every lease, deposit, and dollar. At JMZ Management, your property is our business.
This article is for general information only and is not legal or tax advice.
Thinking about switching? Get a free rental analysis at jmzmanagement.com/freerentalanalysis or call 248-284-6990.
CONTACT US to learn more about professional property management in Michigan.
