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  • Writer's pictureKarel Costa-Armas

How To Choose the New Property Management Company

Updated: Jun 17


How to choose The New Management Company
Choosing the new HOA Property Management Company

Many of the calls I receive from frustrated board directors involve the topic of looking for a new management company. While there may be a problem with the management company they currently have in place, most of the time, it comes down to a misunderstanding of expectations from the board of directors.


What are you looking for in a management company for your association?

What are your expectations?


Most management companies will provide their proposals to an association with similar proposal terms and similar pricing. Most of the time the pricing is based on a per-door basis, and boards are left with colorful, long-winded sales brochures telling you how great their services are. Please set the management fee and all other costs aside for the time being. You must establish your expectations before considering pricing.


The very first step in seeking a new management company is to generate a “request for proposal” that has all the expected services you seek. I recommend you ask some questions that will translate into the level of service you are expecting. The RFP (request for proposal) should outline everything you want from the management company and the manager assigned to your property.


Here are some of the more important concerns:

1-           Will the management company provide the financial services? (Paying invoices and collecting dues)

2-           Can the association expect to receive the financial statement monthly by the 15th of the following month?

3-           Will the management company provide board member training?

4-           What level of experience will the manager have assigned to the property?

5-           Will the board have a choice in selecting the manager ( to interview candidates)?

6-           What is the intended salary for the manager?

Does the board get to know all details of employee salaries?

7-           How many meetings is the manager contracted to attend per month?

8-           Will there be a monthly management report from the assigned manager?

9-           Does the management contract provide for bidding on minor work and major projects?

10-         Does the management contract provide for construction oversight? If not, how much will that cost the association?

11-         What is the background of corporate leadership?

Are they experienced managers, or do they have expertise in other fields such as accounting?

12-         What are the services expected after hours and for emergencies?


While the management company you are considering may be fantastic, the board must know the answers to the questions above. The complete RFP will have many other terms and requirements that are just as important as the questions above. The board may come to an epiphany and realize that their expectations of management require a much higher expense than what they have been historically paying.


The manager of your property will make all the difference. There are many great managers working at small unknown management companies. There are also huge national management companies with a great sales package, that will provide a sub-par manager. The board’s main concern should be the manager’s experience, education in the industry, and that their salary is well within the current standards. The manager is the person the board will interact with daily and count on for the most current information.

I can go on quite a bit more about setting the expectations properly to acquire relevant proposals for your specific property. The RFP’s I usually generate for associations can be between four to eight pages in length.


If you are a director or homeowner that needs assistance in seeking new management, please contact me directly at karelcosta@icloud.com or review the details on my website www.HomeownerAssociationConsulting.com .


How To Choose the New Property Management Company

 

 

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