Management Company Advice

Started by TonyP6 • 7 replies • 1656 views

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TonyP6 (Tennessee)
Posts: 16

Posted:

I'm the Treasurer for a 60-unit self-managed association. In fact, I've been Treasurer for 4 years now. That's primarily because 85%+ of the people who live in this community are older senior citizens who don't own a computer. Those who do lack the ability use spreadsheets, etc. At least this is what I've been told. Based on the shape the records were in when I received them 4 years ago, I believe it. I'm not convinced that people really were paying as they should have been, no late fees were assessed, etc.

I'm tired of being Treasurer. It is thankless, requires probably 10+ hours of work each month, and I receive no benefit at all from this. Recently I learned of a property management company in our area and encouraged the Board to turn over things to this company.

After a good initial meeting with this company (which I was unable to attend), the Board is willing to go with the outside company. This company was to send me via email a contract to look over about 10 days ago. It never showed up. I was promised to get it last Monday. It never showed up. (We had to postpone a Board meeting as a result.) I was promised to get it by Wednesday. It never showed up. In fact, I still don't have it. Each time there is a missed commitment, we never hear anything. Instead, when our Secretary calls them they apologize and give us a new deadline.

To say this is raising red flags for me is an understatement. Others on the Board (that know this is going on) feel similarly. The problem is that as far as I can tell this is the only property management company in this area.

Anyone have any advice on what we could do?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Tony,

If your hiring a management company, you should take bids from at least three of them (actually this should be done for any contractor). If this is the only management company, consider hiring an independent contractor to be a property manager.

however, if your able to be self managed but desire help with the finances, you may want to consider hiring an independent contractor to perform bookkeeping duties. Ours would check the mail, maintain the lot ledgers, make deposits and send late notices. For this we pay under $500 per month. The Treasure would make the financial statements and pay the bills.

TonyP6 (Tennessee)
Posts: 16

Posted:

When you say hire an independent contractor (the company we have been in contact with is the only company in this area that focuses on this type of work), what type of professional would we be dealing with? A bookkeeper?

JonD1
Posts: 2,350

Posted:

Quote:

Posted By TonyP6 on 05/26/2013 8:49 AM
When you say hire an independent contractor (the company we have been in contact with is the only company in this area that focuses on this type of work), what type of professional would we be dealing with? A bookkeeper?

Bookkepping or acounting firm.

TimB4 (Tennessee)
Posts: 21,059

Posted:

An independent contractor is an individual you hire for a specific task.
You are paying for an end product and not the method used. If you were to specify what method or program be used, then they could be classified as an employee vs. an independent contractor. The difference does affect the bottom line for taxes.
Visit the IRA website to better identify the difference and the tax's associated with each.

If you want a professional, as Jon pointed out, it look under bookkeeping or accounting services.

If you want someone who can do the job but doesn't have the certifications, you can hire someone from within the community (we did) who can do simple bookkeeping.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By TimB4 on 05/26/2013 8:04 AM
Tony,

If your hiring a management company, you should take bids from at least three of them (actually this should be done for any contractor).

Tim gives good advice, but I would recommend taking it a step further.

Whenever our HOA has considered hiring a different property manager, we have not only solicited bids from several, but we have brought them in for an interview before the entire board. Prepare a list of questions you wish to ask the representative from each bidder. Consider past experience, existing and previous clients, what services they propose to do for you, who will actually be your property manager, what is their personal experience, longevity in the field and with their present employer are all among the questions you should ask.

Just as though you would interview a potential employee, you should interview your potential contractor as well.

CarolR11 (Colorado)
Posts: 2,563

Posted:

What Bruce advises also is what we've done. IMO, interviews with the Board are crucial.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

It never showed up. I was promised to get it last Monday. It never showed up. It never showed up. In fact, I still don't have it. Each time there is a missed commitment, we never hear anything.

You can pretty much expect the same behavior after you hire them. Find someone else.

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