Property Management Company for HOA

Started by MelissaM • 13 replies • 1964 views

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MelissaM (California)
Posts: 9

Posted:

Hi everyone.

Great forum!

We live an HOA with 45 high end homes. Our Management Company is an older woman all on her own. Its seems to be over whelming for her and her knowledge of our CC&R's seems marginal at best. I feel our HOA is poorly managed.

Will you please share what you feel is a good management company and what is its responsibilities?

Thank you.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

It sounds like your letting the MC control the HOA instead of the homeowners. The MC should be aware of the CC&R's are but are NOT responsible for enforcing them. That is the HOA board responsibility. The MC just does what the board tells them to do and sends out the notices.
Your HOA may be expecting more out of their MC than they are responsible for. Review the contract with the MC. A Management Company is a PAID contractor for the HOA. They were hired with the intentions of keeping records, accounting, and office/paperwork notifications. The HOA (Homeowners) are responsible for managing themselves and enforcing CC&R's violations.
I would look into taking 3 bids from different companies. We hired a CPA and managed the place by our board. They (CPA) collected the money and issued checks based on the board's approval to spend the money. The CPA and one board member (approved) had to sign EACH check before being cashed even for utility bills. The CPA also printed out monthly collection reports (viewed ONLY by board members) and Expenditure reports. (Viewed by EVERY member).
As a homeowner, I would prefer that I was able to "manage" myself and my neighbors rather than having an outside source responsible. If your HOA doesn't feel this way, then look into dissolving and having a MC run it full time.

Former HOA President

MelissaM (California)
Posts: 9

Posted:

Thank you for your reply.

The problem is that our MC doesn't conduct general business properly. We need guidance as for the state laws on how to conduct our business. Does a good MC know what our legal bounds are or as a Board are we solely responsible for knowing the current laws. We are all very busy professionals and need to consult on the proper protocol for various issues. My hope is that a good MC could guide you in these ways.

RogerB (Colorado)
Posts: 5,067

Posted:

Melissa, the services offered and their quality by management companies varies greatly. I have attached our basic management agreement which spells out many of the services we offer.

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MelissaM (California)
Posts: 9

Posted:

Thank you RogerB. I wish you lived in the Sacramento/Vacaville/Fairfield area of California.

How would one find a Management Company in this area. I have tried a search on-line but no luck.

Thanks again.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

You can count on Roger to steer you in the right direction on what constitutes a good Management Company.
Further, it is always good to network with other communities in your area (or the closest area to you) to see who they are using and if they are satisfied with the service. Check out community info at your local township/borough office; they may even give you names of Board president/s.
If not, be proactive and drive to the communities and start knocking on doors.
Remember, you are the employer and the Mgmt. Co. is your employee. If the Mgmt. Co. is not fulfilling responsibilities to your satisfaction, you no doubt can release them from contract (usually in 30 days) and get someone with a good reputation for service.
Good Luck!

KevinC2 (Michigan)
Posts: 15

Posted:

Melissa,

I have been doing quite a bit of research on property management companies myself. I have found some good resources, such as www.caionline.org. From this site you can find a California branch of the organization. That should get you to some links. Appears as though your branch would be California North (i.e. Sacramento area). The site is www.cai-cnc.org. There is a whole list of management companies on the site that you can contact. Best of luck!

Kevin
Board President
The Courtyards Association

JM2 (Oregon)
Posts: 439

Posted:

Hi Melissa:

Here is a link to the California-North Chapter of CAI; it's their page of member management companies.
http://www.cai-cnc.org/directory/mgt.html

When working with either an on-site manager or with a management company, the duty of the board is to set policy and the job of the community manager is to carry it out. Look up "Policy Governance" on the web for a more detailed explanation of the concept.

Best of luck!

J. Patrick Moore, CMCA

MelissaM (California)
Posts: 9

Posted:

All excellent information that has me taking direction.

I have on important question that will help me in what to expect from a management company. I realize that our state's laws are ultimately what govern's our bylaws and covenants. From time to time these laws change that do not reflect what are CC&R's might. Would a good management company inform the Board when their policies are in conflict with the law or the law has changed? Or is it the Boards responsibility to keep up with the law changes year after year.

Because of our very busy schedules I am hoping a good management company keeps up with the legal details and advises the Board of such changes.

Thank you

WilliamT (Arizona)
Posts: 489

Posted:

Melissa, consider this: Your property manager is not an attorney. Most property managers manage from 7 to 10 properties, and are very busy, so a lot of things can fall through the cracks.

The board is untimately responsible for knowing and applying the laws. It doesn't take a lot of time to research the laws on the internet in most states. In AZ, one can get all the laws in just a few minutes by searching the web for Arizona state planned community laws. I suspect that most states are equally easy.

The laws are fairly easy to understand.

The other option is to have an HOA attorney send you copies of the laws. Many HOA attornies have the state laws on their web site for convenience of anyone browsing their site.

Do not rely on your property manager for legal advice.

RogerB (Colorado)
Posts: 5,067

Posted:

Posted By MelissaM on 03/07/2007 12:06 PM
I realize that our state's laws are ultimately what govern's our bylaws and covenants. From time to time these laws change that do not reflect what are CC&R's might. Would a good management company inform the Board when their policies are in conflict with the law or the law has changed? Or is it the Boards responsibility to keep up with the law changes year after year. Thank you

Yes, a good management company would provide guidance to the Board; and

Yes, it is the Board's responsibility to be aware of current controlling laws and make their decisions accordingly; even when they are guided by a Managing Agent and/or an attorney.

JM2 (Oregon)
Posts: 439

Posted:

Posted By MelissaM on 03/07/2007 12:06 PM

All excellent information that has me taking direction.

I have on important question that will help me in what to expect from a management company. I realize that our state's laws are ultimately what govern's our bylaws and covenants. From time to time these laws change that do not reflect what are CC&R's might. Would a good management company inform the Board when their policies are in conflict with the law or the law has changed? Or is it the Boards responsibility to keep up with the law changes year after year.

Because of our very busy schedules I am hoping a good management company keeps up with the legal details and advises the Board of such changes.

Thank you

Melissa:

A good management company will be staying up-to-date on the law changes and will advise you to contact the HOA's lawyer to handle the changes in law, if any document changes are required.

Also, there may be a local law firm that offers a forum from time to time for boards, members and managers to update them on law changes (we have one in the Portland, OR area that offers a yearly forum, as well as lawyers doing presentations through the local CAI chapter, law firms sponsoring educational lunches for managers, law firms offering seminars to boards, etc.).

While it's not the management company's job to give legal advice (unethical) it is their job to point out issues and help the HOA to get good legal advice.

J. Patrick Moore, CMCA

NancyM2 (California)
Posts: 249

Posted:

I was told by our Mgmt Co at our General meeting last night that most HOA's are now hiring "In house attorneys" at large salerys to keep the board informed because of all the new laws comeing out of Sacramento. Has anyone else heard of this.

NancyM2

RogerB (Colorado)
Posts: 5,067

Posted:

Posted By NancyM2 on 03/07/2007 5:21 PM
I was told by our Mgmt Co at our General meeting last night that most HOA's are now hiring "In house attorneys" at large salerys to keep the board informed because of all the new laws comeing out of Sacramento. Has anyone else heard of this. NancyM2

Yep, some Management Companies spread this rumor and I suspect some profit from enlisting the foolish.

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