Transition Period with New Management Company

Started by IreneJ • 4 replies • 1412 views

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IreneJ (California)
Posts: 38

Posted:

We replaced our management company in June. It's been 3 months and the new management company still says they do not have the financials ready. The previous company was very organized and handed over the documents the day of the transition. Has anyone experienced this type of delay? Is it unreasonable to think the financials should be ready by now?

DavidW5 (North Carolina)
Posts: 565

Posted:

We made the same type of transition two years ago. We received the January financials by mid-February so three months sounds too long to me.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Schedule a meeting to go over what they have done so far. Its not a mgmt company issue, its a communication issue.

JH3 (Maryland)
Posts: 67

Posted:

It depends what the previous management company gave them. Its possible previous management gave them everything they had the day of the transition. It doesnt mean it was right information.

Typically a transition takes place over 30-60 days, half of which is before the actual transition date and the other half is after.

If previous management dumped everything into their lap the day of the contract start date. 3 months isnt unreasonable.

Schedule an appointment with your manager, in their office, so they can show you what they were given, what they now have, and where they are going, and when they expect it to be done.

It also depends on your Fiscal Year. If it ended in or since June, closing out the books normally takes 3 months when a transition is not involved... much longer when it is.

Typically Jan/Feb financials are delayed until March/April with a calendar fiscal year.

LynneV1 (South Carolina)
Posts: 211

Posted:

They may not have a year to date spread sheet yet, but they should give the board any bank statements they received and an income and expense sheet for each month. You need to know your bills have been paid.
Also 2 board members should be on the bank signature cards so that at any time a board member can go to the management company's bank and get a statement for all the savings and checking accounts.

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