Firing Our Mgmt Co and Hiring an Individual /GA

Started by JenniferB12 • 7 replies • 1836 views

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JenniferB12 (Georgia)
Posts: 7

Posted:

We have finally decided after 5 miserable years to fire our Management Company. We've chosen to hire an independent contractor to be responsible for our bookkeeping, collections of unpaid dues, scheduling maintenance items, tracking violations, and to handle homeowner issues. This person will be in the clubhouse office on our property.

BUT, the mgmt co we have terminated wants to come meet with us so they can point out why we must have a licensed broker in place. The Mgmt Co is run by a lawyer who so far has been anything but open / truthful with us.

Is this true? If we pay someone do they have to be a Licensed and Insured broker in Georgia? This person would not be handling sale of property, leases or rentals, or collection of rents. Just managing the HOA.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Is this true? If we pay someone do they have to be a Licensed and Insured broker in Georgia?

No.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Jennifer,

They want to give you one last hard sell on keeping them on.

Politely respond thanks but no thanks.

Of course, if you are interested in hearing what they have to say, you can invite them to speak but make it clear that the Board has zero plans of keeping them on.

Tim

MelissaP1 (Alabama)
Posts: 13,836

Posted:

It may not be required but I would definetely ONLY hire contractors that are licensed and insured. You will regret it if you don't. Our CC&R's dictated that all our contractor's carry a minimum of a 1 Million dollar insurance policy. So review your documentation and see if there are such requirements.

Be careful of LLC companies. If there is a "LLC" and multiple partners associated with any contractors, you could run into trouble in the future with these types of corporations/companies. The liabilities could fall onto your HOA if they fall short. So try to hire contractors even individuals, that are incorporated if possible. The liability and tax burdens are different and more reliable.

Former HOA President

LoriM5 (Georgia)
Posts: 1

Posted:

You definitely are setting yourself up for liability issues in the future. Make sure that your covenants do not "require" a professional management company, as well. You can always shop around for management that meets (some exceed)the Board's (and the Membership's) expectations. http://www.flipdocs.com/showbook.aspx?ID=10004667_453570

PetunkaM (Florida)
Posts: 1,009

Posted:

Allow me to say where I think the problem really lies and how you may be able to work around it.

It appears that your contractor cannot officially represent the Association as the ‘Community Manager’ unless he has a real estate broker’s license and takes the required 25 hour community course. However, that may not preclude you from hiring him as an Association employee to help you with some of the tasks you need help with. Have you considered this option?

Requirements for ‘professional association management companies’ vary from state to state (link below). Georgia states:

Must Georgia community association management companies have a real estate broker's license?

YES. Community association management is an activity that must be done under a broker's license. In addition, the person doing the management must have a community association manager's license.

In order to qualify for a community association manager's license, an applicant must:
• Have attained the age of 18 years;
• Be a resident of the State of Georgia, unless that person has fully complied with the provisions of Code Section 43-40-9;
• Be a high school graduate or the holder of a certificate of equivalency;
• Furnish evidence of completion of at least 25 in-class hours in a community association manager's course or courses of study approved by the commission; and
• Stand and pass a real estate examination administered by or approved by the commission covering generally the matters confronting real estate brokers who provide community association management services and community association managers after completing the requirements of paragraph (4) of this subsection.
Failure to meet any of these requirements shall be grounds for denial of license without a hearing.

http://www.allpropertymanagement.com/propertylaw/

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

In georgia you "can" be a real estate broker and do all of these things, or you can get a community association manager's license. Much less work. The examination fee of $91.00.

http://www.grec.state.ga.us/grec/recam.html

That said..... someone can do administrative work for you without a licence and the board can be left making the big decisions.

JenniferB12 (Georgia)
Posts: 7

Posted:

That's it! The work around I was looking for! We don't give them the title of "Property Manager" they are an Associatin Administrator.This way this person can do everything our current Property Mgmt company is doing now. Which, sadly enough isn't much.. At this point our HOA is fully 100% involved in every decision made- we just have to beg and plead to get our Prop Mgr to respond to us or actually do what they've been asked to.

Thanks for everyones responses! We definately feel much more at ease now.

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