Setting Expectations for Your HOA Management Company
We base the best relationships between HOAs and the management companies on open communication and clear expectations. However, suppose you're not exactly sure what your management company should be doing for your association. In that case, it can be challenging to determine if you're getting the total value of your service agreement.
Here's how to set appropriate expectations with your management company—and why it's crucial.
The Management Company is an Advocate of the HOA
Your HOA management company is an agent of your association. The management company is a hired third-party responsible for acting on behalf of the association. The management company has no legal authority to make decisions on behalf of the association unless authorized through the management contract or by the Board of Directors. Ultimate decision-making is the responsibility of the board. Once made, the management company carries out those directives daily.
Part of the management company's responsibility is to provide the association with business advice and best practices guidance. This advice can include everything from maintenance advice, long-term planning, budget planning, vendor selection, and more. Though paid to give their professional opinion, the board makes the final decisions, not the management company.
The Management Company Reviews the Management Contract
In addition to providing sound business advice to the board, the management company carries out the board's directives and handling administrative tasks for the association daily. To understand what that entails for your association, board members should review the management contract.
The contract will spell out the exact details of the service agreement. Most agreements are explicit and detailed, covering things like the number of monthly property walk-throughs the manager will conduct; the number of board meetings the manager is required to attend; the types of documents, services and, property management resources the manager is responsible for providing; and specific requirements unique to each community.
Needs change as communities grow and evolve. We recommend reviewing your management company service agreement the quarter after every board member election. This review will enable you to evaluate if the type and frequency of service you receive from your management company meet your community's needs and expectations. If not, start a discussion with your manager about taking steps to amend the agreement.
The Management Company is a Resource for Homeowners
Though the management company often interfaces with the association's board, managers are equally valuable advocates for homeowners. Suppose a homeowner has an issue with the association. The manager will try to remedy the situation or help the member go through the proper channels to address the matter with the board.
The manager and management company are not "on the board's side." They are on the side of the success of the association as a whole. We encourage homeowners to share feedback with managers, as managers are genuinely interested in how well they are serving the membership's needs.
A Manager's Time is Not Unlimited
Your manager and management company are your association's long-term partners, but they are still outside vendors at the core. Unless you have a full-time, dedicated onsite property manager, your manager is likely splitting their time with other clients. When you hire an HOA management company, your manager's time and expertise are part of what you're paying.
Managers are skilled at time management and will make sure your community's needs are a top priority. However, if you find that your community requires more attention than you are currently receiving, bring up this topic with your manager. They will add it to the agenda at your next board meeting to initiate the discussion.
Suppose your community requires an increased level of manager involvement. In that case, you may need to amend the agreement with your management company. You may need to consider allocating more resources to increase the number of hours your manager dedicates to your association.
The Management Company Defines Gaps in Service
A solid working relationship between association and management company is about expectations: what you believe you should be receiving compared to what your management company provides. Don't rush to cancel your contract and hope for the best somewhere else if there is a consistent divide. Sit down with your management company and board and clearly define the gap—more substantial communication results in a strengthened partnership.
Contact Us
The relationship between HOA and the management company will change as the community evolves. Keep comparing the community's needs with the service type and level the management company provides. Don't be afraid to re-define expectations—or share positive feedback about what's working well. Let's discuss how your association can maximize the total value of the management company relationship. Our HOA management experts are here to help. Contact us today!
