Guide to HOA RFPs
One of the most complex decisions a homeowners' association (HOA) board of directors will have to make is hiring the right people for their management company. It can be a cumbersome process and take time and effort to find the management company that best suits your needs. When your board writes and distributes a request for proposal (RFP), they're simplifying the process. Read on to learn about RFPs, why they're important, how to draft one, and more.
What An RFP Is
Typically drafted by the board of directors or an appointed committee, an RFP is a formal document that requests a bid for management services. The paper should include essential information about your community's needs, expectations, and requirements. Considering the RFP details, management companies will then submit proposals explaining what they can offer your community and why you should hire them.
Why Your association Should Use an RFP
Creating a comprehensive, well-written RFP that clearly outlines your community's desires simplifies the selection process. Vendors can craft personalized proposals addressing your community's specific needs, minimizing negotiations and saving time, resources, and energy. In most cases, the better the RFP, the better the proposal, and the easier it is to compare, evaluate, and select a management company.
Using an RFP also allows you to set expectations initially, ensuring a pleasant and productive partnership that will benefit your community for years to come.
How to Submit an RFP
Usually, a management company's website will include a link to request a proposal. Otherwise, it's best practice to send a professional email with your RFP attached and your direct contact information listed.
What to Include in an RFP
To get the most out of your RFP, be as detailed as possible and include:
Provide the basic information: Association history, distinguishing features, number of homes and members, and type of community (townhome, condo, single-family)
List Amenities: Pool, clubhouse, gates, deeded parking, etc.
Provide Board Information. The number of board members, available internal resources, communication strategy and volume, and vendor and service provider management.
Provide Meeting Data. Meeting frequency, types of business conducted, etc.
Provide Financial Details. Current economic state, assessment frequency, and anticipated increases or special assessments.
List the Board's Expectations: Management philosophy, recent challenges, and goals.
After Submitting the RFP
After submission, the management companies will respond by sending their proposals, providing thorough information about their company and a pricing bid for their services. After carefully reviewing, evaluating, and comparing your list of recommendations, you should be confident to proceed and conduct interviews with a select number of candidates and ultimately make your final decision.
Contact Us
At Condominium Associates, we know first-hand that hiring a professional management company has countless benefits, including reduced costs, increased efficiency, and stable and reliable operations. We will work with your HOA Board to make this a successful process for you and your community! Contact us today!
