Property MGRs .... What do they know

Is it just me,or does it seem like some of the important tasks that are deligated to Prop. mgmt. are not that well known or understood, especially in the area of contracting activity. We have had numerous prp. mgrs. over the years and they all profess to have a grip on this but we are constantly being shown that this area is not something that prp. mgrs. do particularly well. Our community is 30yrs old and we are activly moving to renew the community facilities and update the common grounds ares. Our board would like to be able to deligate the tasks of writing contract specifications and managing the project to completion but it clear that we have more experience and talent on the board than is being provided by the persons who have filled the prp. mgr. position here. We have looked for a person with these skills and they all say "oh yeah write specifications.... no problem" I think what they mean to say is "no experience"

John, to answer a question you asked in another post, check out http://www.theleadershipcentre.org/ You can contact the administrator Cynthia Durham who used to be the Gilbert Mayor. She can point you in some direction for MC's, etc.

They have excellent HOA classes, and some are put on by a property manager or local HOA attorney, all expert in their fields.

Property managers are advisers. They can advise you on how to run a meeting, keep records, etc. The should advise you when to get legal advice or other professional advice. A property manager should not be expected to be an expert in automatic entry gates, docks, building maintenance, lawn maintenance, tree surgeon, or other things like that. Their job is to help you locate experts in all those fields so you can obtain the professional advice in a particular field and obtain bids.

Therefore, it is the board's job to write the specs. That can be done by consulting with some of the vendors referred by the manager, asking the experts what should be done. After gathering enough information from several experts and doing some independant research, then a committee can write the specs and submit it to the board. If the board approves it then it goes to the MC to put out for bid.

Ideally, when each bidder visits the property to work on the proposal, a member of the committee will accompany them and make sure that they have an understanding of the specs.

When the bids come in, the committee should review the bids to make sure that all of the specs are included, then make a recommendation to the board of what the committee feels is the best bid. The board sees all of the bids prior to the meeting. Then you can ask the MC to talk to the best bidder, who may not be the lowest bidder, and ask them to sharpen their pencil. That's where the MC can save you some money.

When the work is scheduled, a member of the committee should visit the site while work is in progress so as to correct any errors that occur while it's in progress. When the work is complete, a member inspects to be sure it is as per contract, and then approves payment.

As you can see, there is a lot of work to be done there, and not only can we not expect the property manager to be the expert in all these fields, but we do not pay them enough money to do all of that work.

It is a lot of work, but doing it this way will save the association a lot of money, especially when you're updating a 30 year old property.

We're in the process of doing the same thing to a 20 year old property, and I've spend many hours writing specs, talking to vendors, coordinating, and inspecting. And it really pays off.

We're not in north Phoenix so our vendors wouldn't be good for you. But contact www.TheLearningCentre.org and you'll get some help.

John, the www.thelearningcentre.org that I told you about has a class coming up soon on how to choose a property manager and vendors. That should be a timely class for you. It's at the Chandler Gilbert Community College, and would be worth the drive from north Phoenix.

John, many managing agents have very limited experience (average is less than 4 years) and limited qualifications. I strongly recommend the Board always interview with the specific agent who will manage their property -not the Company's sales rep. Forget about fancy sales brochures - ask to see some typical examples of last month's financials and correspondence. Ask the critical questions you need answered about the specific services you need.

Ask key questions that are not expected by the agent, such as those I have previously posted. Such as what percent of the assessments are currently delinquent? How many times (over what period of time) have your HOA's been to litigation? Do you maintain a list of approved contractors? How many assocations and total number of homeowners do you manage? And what are the names of the HOA's which have terminated service? Those could be the most meaningful references to check out if you can their names

Also, be involved in drafting the management agreement - don't just use the management company's agreement.