need a management company

Michael - Sounds like you're still under developer control so if that IS the case, there's really nothing you can do right now (except background work planning for the future).

Typically here's how it works:

Your condo association is run by an elected Board of Directors. Right now, the Board is probably composed of your developer and his/her appointees. It's the Board that would source and hire a management company to run the day-to-day operations of the Association, but right now that decision is up to the developer.

Once developer turnover has occurred (Read you governing documents to find out what exactly triggers that to happen), an owner elected Board can then make the decision about hiring a management company.

Finding management companies is pretty easy - find a GOOD management company is somewhat more challenging. I would suggest:

1). Source a list of candidate companies (everything from the Yellow Pages, to word of mouth, to other communities, etc, etc, etc)
2). Contact communities that are similar in size, type, demographics, etc as yours and ask them about their experiences - both good and bad - with property managerment companies.
3). Select several companies to do a presentation for the Board - they'll eagerly do so to try to win the business.
4). Ask for a copy of each company's "standard management contract" to get an idea of the scope of services normally provided.
5). From the collective contracts, construct a Request for Proposal (RFP) to be distributed to what should now be a somewhat shorter list of potential companies.
6). Evaluate the proposals and (hopefully) make a good choice.

As for costs, the actual cost will be heavily dependent on the type and size of your community since those two factors will determine the amount of work the company has to do.

As for HOW they charge, it typically is a "per month/per unit" cost.

Finally, look for a response to your post from RogerB from Colorado here. He's a forum sponsor and runs a property management firm. He is a valuable contributor and will send you in the right direction.

Thanks Janet,
I will study the article. Any more articles that you can provide with be greatly appreciated. I had no idea that HOA'S were as complicated as them seem to be.
Beginning to wish i had done more homework before purchasing condo. Thanks again

Hi Michael:

Take heart HOA's are generally not that complicated as long as everyone works together as a "team" which will be especially important as you will have only 34 homeowners. When your homeowner's take over the HOA because there are fewer of you it will be important that everyone takes a turn serving on the Board and as Officers. This will insure that a few do not become burned out and will make for a happier association. We all have busy lives so it is not fair for a handful to always have to take on the extra responsibility.

Check to see when your declaration was filed and calculate the three year period. The earlier of this date or when about the 26th unit is sold will be essentially the turn over period. If your developer is smart he will have meetings during this period, so everyone can get a feel for how an association operates and make the turnover a better and smoother process.

Until this time here are a few recommendations:

1. Have a binder with all your HOA documents. Mine has tabs dividing the Articles of Incorporation, By-Laws, Declaration, etc. Read these a few times and highlight with different colors (i.e., orange = developer/declarant rights and responsibilities and yellow = homeowner rights and responsibilities). If you need to look up something quickly then each responsibility/right will stand out.

2. I also printed copies of my state statutes (noted for you in the above link) and put in my binder along with the above referenced highlighting. You also want to read through these so you know your rights and responsibilities.

3. Have possibly monthly get togethers with your neighbors. You will all be a team in the future for the mutual benefit of everyone. Having fun and getting to know each other will make for a happier HOA and help prevent problems. This also will give everyone a chance to get to know each other when considering future board members and officers. When a new homeowner moves in everyone be sure to make them feel welcome and part of the team.

4. Every 3-4 months look up via internet with your county records whether or not there have been any new documents filed regarding your HOA such as covenant amendments. While there is usually supposed to be meetings and votes, there have been instances when this did not take place. Depending on your state statutes and HOA documents the developer will have certain rights such as filing amendments to correct typographical errors, etc. However, there also have been issues with amendments being filed without proper procedures sometimes from a developer and sometimes from a HOA board. In many states if an amendment is not overturned within one year of being filed it then would be essentially "set in stone" even if the event took place behind homeowners backs without their knowledge. Get in the habit of checking this information about every 4 months so you would have time to respond to any potential negative or harmful documents.

The first year will be the more time consuming in insuring everything is set up properly and issues or documents in place for a smooth transition after developer control. Some items to keep in mind at that time will be:

1. You are a small community and condos; therefore, you have alot of common items such as roofing, etc. for which you will need to insure you build a proper reserve fund. In researching regarding HOA's in my area I have found that those who are a smaller community are better financially when they did not have a management company for the first 2-3 years. While a management company will relieve some burdens from the HOA board/officers there is also an added cost associated with having one. Many smaller HOA's here have chosen to run everything themselves for the first few years and that extra money helps build their reserve fund for potential future large repairs. After the reserve fund was built, they then hired a management company to help relieve some of the burden from the board/officers.

2. I would recommend having at least two HOA accounts (one for operating funds and one for reserve funds). Also I would recommend that two Officers must sign all checks. This will insure that one person cannot wrongfully utilize any HOA funds.

We wish you the best!!!