Hiring a new Management Company

Started by JamieL4 • 9 replies • 1739 views

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JamieL4 (Colorado)
Posts: 4

Posted:

We are a 12 unit HOA looking to hire a new "full service" Management Company. I have been tasked with getting bids. This is something I've never done before and am looking for advice on how to go about this process. I've look at our old contract which mainly handled the accounting and maintenance requests. We'd like to get a company that will handle that plus enforcement of CCR's. My main concerns are, questions to ask the MC and things I might need to be aware of.

Thanks for the input.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Enforcement of the CC&R's are still a BOARD responsibility. They can USE the Management company to do things such as send notifications of violations, keep track of the fines, or file the proper paperwork. However, the actual decision of violation and enforcement is up to the board to work out. A Management company IS a contractor to the BOARD. Using them as the "Bad guy" distinctly needs to be worked out. It doesn't mean they can't do the enforcing. Just understand they may do it differently and still refer to the board for final say.

I'd go by your old contract as guidance but have a meeting with a few interested parties. Go over it to see if there are any changes you all would like made. This is an oportunity to make changes. NEVER sign a contract term for over a year. Some companies may offer "Discounts" if you sign a 3 year contract. Bad idea. It ties up the HOA too much.

Make sure there is a 30 day out for BOTH sides. If you all sign this document make sure there are conditions that will allow you out of it. A good lawyer familiar with contractual/business law should help out here. It's good to get some advice from a professional if you do draft a new contract.

Just make sure to get atleast 3 bids and present them to everyone. It doesn't have to be the cheapest bid that wins. Just the one everyone feels the most comfortable with. Check out if they are licensed and insured too!

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Jamie

Ae you unhappy with the old company? Maybe you could ask them to requote adding the new things you wish done.

Having said that, I would still get a few quotes from other companies for comparision and to put minds at ease.

Always ask for references as in HOA's they are presently representing and do contact the references.

Pleas keep us informed as we will be looking to hire our firt management company later this year when the developer turns our HOA over to we owner. If you would like to chat about this privately feel free to Email me at [email protected]

Best of luck.

RogerB (Colorado)
Posts: 5,067

Posted:

JamieL, attached are a sample management agreement which you can use to develop a RFP. Include the services desired, type homeowners (condo, townhomes, or individual houses), the number of units, and the common area amenities. Send the RFP to management companies in your area. After narrowing down to 2 or 3 have an interview with each. Attached is a document with some questions to consider when selecting a management company.

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JohnC46 (South Carolina)
Posts: 14,265

Posted:

Roger

Very helpful.

Thank you

JamieL4 (Colorado)
Posts: 4

Posted:

RogerB,

You've made my day. Thanks a million.

ChristyS1 (Colorado)
Posts: 1

Posted:

Hi I was wondering if you were still looking for a new management company because the company I am working for is looking for some new client tell. 5-1-12

TimB4 (Tennessee)
Posts: 21,059

Posted:

Christy,

You are beginning to stretch the the sites Posting Rules

JohnC46 (South Carolina)
Posts: 14,265

Posted:

jamie

Off the top of my head, I would say with only a 12 owner association it should be quite easy to self manage. That few could sit in my living room and work things out.

Just my opinion.

Susan (Colorado)
Posts: 2

Posted:

Jamie, Were you ever able to muddle through the hiring of a new management company? We are a full service managment company and would be happy to help if it is still needed.

Susie
Community Preservation Specialists, Inc.

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