It is now official and the new transition period begins. What happens now? How does your onsite team get through the transition, the time after saying “good-bye” to what was known and comfortable and the time before the new rules, regulations, and policies take effect? The first days of the transition are critical to the success of the takeover or acquisition and the installation of the new management company. Without some plan the success will be overshadowed by the turmoil, the upheaval, and the uncertainness of the transition.

Any time a new management company is employed and tasked with turning around an asset, whether or not it is a troubled one, there will be a level of unrest for the onsite team – even when the change is actually a welcome relief. For those teams who were winging it with a wing and a prayer and are now happy to be in receivership, the thought that there will be some order to the chaos will help them breathe a sigh of relief. For those teams, however, who are being dragged kicking and screaming into a new management company, the change will not be so much welcome, as it will be fraught with mistrust and uncertainty. And finally, for those teams who are expecting the new management company change, there will be a period of adjustment.

If you are an onsite team in just such a situation, please read this carefully. This period of time will separate the seriously committed from those who seriously should be committed. What should you expect?

First, you should expect that there will be a new Game Plan put into place. This means, if you were expected to “work with your Residents” and allowed them to pay late (frequently), this will change. Be glad – your receivables will look much better. You may find yourself in eviction court more often while those delinquent Residents are forced to pay or quit. Second, it also means that your Resident Selection Criteria may change. If you were expected to “relax your standards” because every lease counted, this may no longer be the case. You may expect that, with a better defined Resident Selection Criteria plan, you will no longer be expected to make a judgment. The decision to rent to an Applicant will have to meet the standard in place and usually, the onsite team will have that decision made for them by a computerized scoring system. This should be a welcome relief. And third, it will mean complying with a budget. Having a defined, approved budget may be just what you were hoping for!

In the interim, please prepare yourself for some inevitable situations. Typically, some of the team will find other positions elsewhere leaving the rest of your team short-handed. Some of the team may be grumpy and cranky with one another as suddenly personalities are no longer as tolerated. This happens sometimes because leadership may “abandon ship” and that former person may have been the one who smoothed things over and “handled” certain people when they became recalcitrant. These days can be difficult when personnel leave, new people hired or openings exist leaving others to try to carry the burden.

While there are certainly questions, rest assured that the new management company wants to build a successful team. Oftentimes the new management company will offer endless (sometimes seemingly so) training opportunities for the onsite teams to build their skills. They may implement a dress code or provide uniforms. This will at least make the team appear cohesive and recognizable as a team. (For those who work in leasing and management, this may be a new trend. Just remember, should this happen at your property, you have the option of expressing your “individualism and personality” by accessorizing with shoes and jewelry.) They will offer benefits! If your former company offered it before, then this will not usually present any challenge. If you did not have it before, then this will be something about which to rejoice.

It has been my experience that no day is all roses and happily few days are all thorns during transition periods. For some, what is the most difficult is having your role redefined by someone you may not trust – or like, for that matter. This is not always the case though. You can get through this, I promise you. The following are some suggestions for those of you who are in times that are trying your souls- both at the corporate level and those at the onsite level:

1. Recognize and assign the duties necessary to running the property. If you have openings, hire the right people for the positions open. If you don’t meet them right away, then please wait. Don’t hire any warm body to fill the slot. This is a mistake that can cost you and your company a great deal. If you are “Corporate”, then please understand that the people who are remaining have added some kind of value to the property; otherwise you would not have wanted to take on this new acquisition.
2. Train your teams. Simple. People who are trained to do something the company’s way and understand why your company wants to complete tasks a certain way will learn to embrace and adopt the new ways. If you are “Corporate”, send your teams off site to conduct some fun training – fun being the operable word. Give your teams all the proper tools that may have been missing before the takeover, including new computers, laptops, iPads, and software.
3. Communicate effectively. Blah, blah, blah – no lip service, please. Be honest with all team members and answer any questions completely. Sugarcoating what is happening helps no one. If occupancy is a looming issue, admit it, stare it in the face and communicate how that will get better. If you are “Corporate”, please listen sincerely with an open mind to concerns. If you are not keeping onsite teams, do not wait until you walk in the door the first day to let them know. If your policy is that no one living onsite gets a free apartment, let those affected employees know this right away, or adjust compensation so that it will sting less.
4. Define your company’s financial goals to all onsite teams. If the property has been operating in the red for the past two years, this won’t be news to the teams, but if they now have to have complete approval by the Regional for all expenditures, this needs to be outlined. Let your Leasing Teams know and help them understand how many leases and move-ins will be needed to increase occupancy. Help every team member comprehend economic occupancy, not just physical occupancy and why this is important. Too many leasing consultants think, “If only I can get this lease, we’ll be at 90%.” But if your lease is closed with a concession, then full rent is not there, is it?
5. Reward accordingly. This means, the company should identify its definition of success, as well as, if there are Bonuses, commissions and any other compensation given, including raises and promotions. Every person who works onsite should have some concept of when a commission is paid (new and renewed leases), when a bonus may be earned and paid, and if the company will look to promote should any openings occur.

Every person within the company should know how to execute value and how that execution is rewarded. Every person needs to understand that he or she must complete critical tasks in order to be successful. Recognize your talent!

If your team is going through a transition with a new management company, just remember that life has its rewards for those who face it head on, remain true in their convictions, and learn to bend. Before you put in your 2-weeks notice, before you leave for what oftentimes turn out to be less green pastures, after all, ask yourself if you can keep an open mind. Can you visualize another way of doing things other than the “way it’s always been done before?”

If you are with the Corporate Office, just remember, work is a two-way street, a push/pull endeavor and that each person is affected in some way by the decisions you make. Strive to build the team up – but don’t allow one’s negativity to drag the company and its goals down. Engage your new team members confident in their ability to forge a new path for the property. This is the ultimate win-win.