The best relationships between community associations and their management companies are built on open communication and clear expectations. When a board is not sure what its management company is supposed to be doing, it becomes hard to tell whether full value is being received from the agreement.
Here is how appropriate expectations can be set, and why they matter.
The Management Company Acts on the Board's Direction
A management company is an agent of the association. It is hired to act on the association's behalf, and it has no authority to make decisions for the association beyond what is granted in the management contract or by the board of directors. Decisions are made by the board. Once they are made, they are carried out by the manager.
Advice is also part of the job. Guidance on maintenance, long-term planning, budgets, and vendor selection should be expected. The final decision still belongs to the board.
In Florida, community association managers are licensed by the state when certain services are provided for larger associations, and certain duties are placed on them by law. Board members can ask to see a manager's license at any time.
Expectations Are Set by the Management Contract
The exact scope of service is spelled out in the management contract, so the contract should be read by every board member. Most agreements cover items such as:
- How often the property is inspected
- How many board and membership meetings are attended by the manager
- Which financial reports are delivered, and when
- How owner calls, emails, and records requests are handled
- Which services are included in the base fee and which are billed separately
- The term, the renewal clause, and how notice of termination must be given
Needs change as communities grow. The agreement should be reviewed after each annual election, when new directors are seated, so that the type and frequency of service can be compared with what the community needs. If something no longer fits, an amendment can be discussed with the manager.
The Manager Is a Resource for Owners, Too
Although most of a manager's contact is with the board, owners are served as well. When an owner has an issue, the manager will either resolve it or help the owner bring it to the board through the proper channel.
The manager is not "on the board's side." The manager is on the side of the association as a whole. Feedback from owners is welcome, because it shows how well the membership is being served.
A Manager's Time Is Not Unlimited
Unless a full-time, on-site manager has been hired, a portfolio manager's time is shared among several communities. The manager's time and expertise are part of what is being paid for, and the amount of time is defined by the contract.
If more attention is needed than is being received, the subject should be raised with the manager and placed on the next board meeting agenda. More hours or added services may call for an amendment to the agreement and a change in the fee.
Gaps in Service Should Be Defined Before a Change Is Made
A working relationship comes down to expectations: what the board believes should be delivered compared with what is being delivered. When a steady gap is seen, the contract should not be canceled in a hurry. The board should sit down with the management company, name the gap in specific terms, agree on a fix, and set a date to check on it. Stronger communication usually leads to a stronger partnership.
If the gap remains after that, the board will at least know exactly what to ask for from the next company. Our overview of
HOA management services shows what a full-service agreement typically includes.
Expectations Should Be Reviewed Every Year
The relationship will change as the community changes. The community's needs should be compared with the service level every year, and positive feedback should be shared as freely as concerns.
To talk through what your association should expect from a management company,
contact Condominium Associates or
request a proposal.
