Most times, the relationship between HOA boards and HOA property management companies is a good one. Both parties know that it takes constant work and close coordination to ensure a smooth stress-free relationship. When a community switches from self-management to a professional property management company, the transition should be seamless. Here are some tips for making sure the relationship with your property management company is beneficial for you and your community.
Maintaining a great relationship takes work!
Understand your respective roles. The HOA board manages the neighborhood in accordance with their rules and governing documents. The property management company should handle the day-to-day financial and business operations, executing the boards’ decisions and enforcing the rules when needed. The board/managements relationship will work best when both parties execute their respective responsibilities.
Set realistic expectations. If your association is only paying a small amount each month for management, you shouldn’t expect them to be onsite every day. Most property managers are not available 24/7, although some do offer emergency after-hours service. Make sure service hours, email/phone response times, responsibilities, delivery of reports, staff availability, etc. are layed out in your contract or documents.
Communicate early and often. If you expect quick follow-up to your questions and requests, your property management company most likely expects the same in return. The board should set a primary liaison in charge of the main communications to the management company. This individual should respond to the property managements questions, approval requests, etc.. The liaison should also be able to ask for help and advice from the management company when needed.
Review financials. Even if your property management company prepares your monthly financial statements, it is still the boards’ responsibility to review said statements and verify accuracy and ensure that revenue and expenses are classified correctly. Normally the treasurer reviews these statements each month. You don’t want simple misinterpretations to become bigger issues in the future.
Conduct audits. Consider conducting an audit every 1 or 2 years. This will give all parties peace of mind that the community is financially healthy and is being well operated. Most property management companies wont mind, and may appreciate the third party verification of their quality of service.
As a board member, it is your duty to ensure that all obligations in your contracts are being met. When you hire an expert team to help with the day-to-day execution of community business, the relationship becomes much like a marriage. It takes ongoing effort and nurturing to ensure a successful relationship. If you set realistic mutual expectations with your property management company, and abide by those guidelines, you can effectively and efficiently run your community.
Page Carlee
Sandra Vela Mora
Camille Moore
