Recently, a board member from a California condo contacted me, asking how to go about selecting an HOA Management company. Their management company had recently been acquired, and the new company was not living up to expectations. Despite combing through reviews, and interviewing perspective HOA management companies, she wasn’t satisfied with her options.
If you’ve been around HOA’s for long, you know that decisions like these don’t come quick or easy. And making the wrong choice can have painful consequences. So, how do you find a qualified HOA management company?
When looking for a new manager where do you look? Internet search, the phone book, your local CAI chapter, word of mouth — all of these are fine options — okay maybe not the phone book, after all it’s holding up the shelf in the bookcase. The point is, it doesn’t really matter where you look, it’s what you look for that’s key.
Specialized HOA Management
Community management is property management, Right? Wrong! The business of community management is very different than rental type property management. I could list the ways but let’s just say that HOA management requires skills and knowledge of laws rules and procedures specific to HOA’s and Condos.
An HOA management company that specializes most likely has the tools, expertise, resources and education to handle the challenges that face communities like yours.
Experienced, Informed, and Educated
This one seems obvious but too often boards find a manager with one of these qualities and mistake it for all three. For example: a manager may have years of experience, but if they are using outdated systems, or aren’t familiar with current laws they may be severely unqualified as a manager.
- Experienced: This not only means experience in community management but experience specific to your type of community — condos, single family, townhouses, large communities, small communities, etc.
- Informed: Informed management companies are involved in industry organizations like the CAI. The informed manager doesn’t know everything but they do have the resources to respond to and solve just about any HOA related problem.
- Educated: Certifications are a great way to measure education but in addition, an educated manager is constantly learning, seeking knowledge and finding ways to stay up to date on trends, and changing laws.
A Focus on Customer Service
Let’s face it, HOA managers deal with some unpleasant people. If unchecked, managers can get a little jaded and sometimes their “bad attitude” shows through. A good HOA management company has a strong focus on professionalism and customer service. The manager works on behalf of the board, so the way they treat homeowners is a direct reflection of the HOA board. If homeowners feel disrespected, or see a lack of professionalism from the manager, they will feel that the board is unprofessional and arrogant.
Bad Yelp or Google reviews can be an indicator of poor customer service; however don’t discount a management company because of a couple bad reviews. Even the best manager is bound to get some bad review from disgruntled homeowners from time to time. Perhaps one of the best indicators of customer service comes from the management companies customers. Ask for references from their current or past communities, contractors, and homeowners. These are the people dealing with the HOA manager on a daily basis, and if they like them you probably will too.
- Liar, Liar, Pants on Fire! Handling Misinformation in Your HOA - March 13, 2019
- Setting the Ground Rules for Neighbor Disputes - June 27, 2018
- HOA Board Responsibilities – It’s Not as Difficult as You’re Making It. - April 23, 2018
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Burke, I would add that the board should work with a professional to draw an RFP so that all management companies bidding have a level playing field. I have designed a very thorough RFP.
Thanks Marla, That’s a great point! When I wrote this I was writing it under the assumption that they would be using an RFP but it is surprising how many don’t.
I would suggest meeting with the owners or principals along with one or two agents/managers to get a good sense of the owners and managers they have hired. Check with current boards, HOA’s etc.
Thanks Kevin
Great points, it really comes down to being diligent and asking the right questions to the right people.
Hi Burke,
All very good points!
Echoing your comments on customer service, as well as Mr. Hogan’s comments, I would add that throughout the selection process to tune in to the culture of the management company and consider how their philosophy and work ethic matches with that of the board and community.
Good (General) Managers will be cognizant of which ‘personalities’ on their team should be the best fit for a community.
Thanks Jill
That is so true! Finding a company with the right culture that fits the community is so important. I imagine you see plenty of disputes that could have been avoided had the community and the manager been a better fit.
I would also caution the Board to look closely at the type of communities managed by the company, and compare it to their own. I learned this lesson in an extremely difficult manner. The company I worked for was “acquired” by one of the biggest (note; I did not say best) management companies in the country. They immediately began gutting the talent, especially the ones who had the most. The president was replace by a woman who was the president of another company they “acquired” in the same area. While this woman had years of experience with community association management, it was almost exclusively with HOA’s. Our company had a very large number of high-rises, and the skill set is definitely not the same between the two. The personality types and expectations of those who live in single family homes, or town homes, is distinctly different than those who live in a high rise. This resulted in a failure on the scale that has not ever been seen in this region, contributing to the reason almost 50% of the portfolio terminated contracts.
Read the bio of the company officers and managers carefully. Make sure they know the difference between a concierge staff and the snow removal contractor…
Hiring a property management process is a two-part process.
First you decide on a company that has a good “back office”. That is the accounting and tax filing group. They must also have a list of qualified contractors they work with.
The next part is so important. You need to interview the manager that will be assigned to your condo. Some great companies have less than ideal managers. Either they are rookies, are burnt out or you will be getting some other condo’s reject.