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JulieB9 (Maryland)
Posts: 1
Posted:
Our property has changed through the years and our property management is not doing a good job in working with the board and lacks resources and laws on how to deal with owners who rent their homes as well as homeowners who are delinquent on there HOA fees and are a nuisance to the community. What is a correct way to seek out new management.
GlenL (Ohio)
Posts: 5,491
Posted:
Search Management Companies XXXXXXX, Maryland.

But are you sure it's a bad MC or is it receiving poor directions from the Board. All of the things you cited are the responsibility of the Board to oversee. The MC must follow the applicable laws & your CC&R's, so if there is not a rental restriction in place, they can't invent one. Also you need to review the MC's contract to see exactly what level of service they are supposed to provide, i.e. you can't pay for basic cable and expect to receive HBO & Showtime.

Studies show that 5 out of 4 people have problems with fractions
RichardP13 (California)
Posts: 1,767
Posted:
First let me say, no matter which state you live in, it is the Board of Directors, or in some cases Trustees, who govern an HOA, based on the governing documents within each association.

That being said, it is the PM and legal counsel's responsibility to keep the Board up to speed on any new laws enacted at the national and state level. The PM needs the proper software to handle renters and delinquencies. Sometimes relying solely on an attorney to handle liens and collections is not the prudent procedure. Sometimes a more efficient procedure is utilizing the services of companies that handle just liens, foreclosures and collections.

Delinquencies HAVE to be nipped at the bud. If they get out of control, the association will suffer.

At the center, however, is the PM who must be organized and have the right tools to manage all that potentially goes on in an association. At utmost importance, is their ability to properly work and lead a Board. Both have to work as a team together, if not, well, you end up with a topic on HOA TALK, "What is a sign that you need a new management company".
TimB4 (Tennessee)
Posts: 21,059
Posted:
Julie,

Welcome to the forum. Are you currently serving on your Associations Board of Directors?

Quote:
Posted By JulieB9 on 02/11/2014 5:58 PM

Our property has changed through the years

When you say changed, do you mean that new amenities were added or that the make up of the community has changed (more renters than owners, etc.)?

Quote:
Posted By JulieB9 on 02/11/2014 5:58 PM

our property management is not doing a good job in working with the board

Can you provide some examples of what you mean by that statement?

As Glen pointed out, you need to remember that the property manager(PM)/management company (MC) works for the Board and within the confines of your Associations governing documents, applicable laws and the terms of their contract with the Association.

Quote:
Posted By JulieB9 on 02/11/2014 5:58 PM

and [the PM} lacks resources and laws on how to deal with owners who rent their homes

I'm not sure what you mean by this statement. Typically you deal with non-resident owners the same way you deal with resident owners. You communicate in writing (so their is a record) and hold the member accountable as authorized in your governing documents and/or applicable State laws, County Codes and City Ordinances.

Financial resources are typically born by the Association via the terms established in the contract with the PM/MC.

If the resource you are talking about is the time required, then the Board needs to hold the PM/MC accountable as outlined in the contract. Another option is for the Board to perform more of the work themselves, ask for volunteers from the membership to assist or hire additional contractors for specific purposes.

As for applicable laws, that is an issue you will need to raise with your local or State representative.

Quote:
Posted By JulieB9 on 02/11/2014 5:58 PM

and [the PM/MC] lacks resources and laws on how to deal with . . . homeowners who are delinquent on there HOA fees

The procedure on how to deal with owners of delinquent accounts is established by your Board of Directors and/or governing documents. The key here is to have a solid policy and, allowing for common sense, sticking to the policy.

As Glen pointed out, this may be more of an issue with the Board than with the PM/MC

Our policy is:

30 days - letter
60 days - letter
90 days - certified letter
90+ days - notice of agenda item to escalate collection efforts
within 7 days of meeting - certified letter on results of meeting
30 days after notice of results - issue sent to attorney and lien placed on property

Common Sense - Board decides if Association should foreclose on lien

Note: I say common sense because every situation is different and if a member is paying something (what they can afford) vs. another member paying nothing, then common sense would say to work with the member who is trying to pay their debt.

Quote:
Posted By JulieB9 on 02/11/2014 5:58 PM

and [the PM/MC] lacks resources and laws on how to deal with owners who . . . are a nuisance to the community.

Typically, your CC&Rs have some language about members not doing activities that are considered a nuisance to the community. The CC&Rs and other governing documents typically contain a procedure on how to enforce the covenants. Please note that covenants can be enforced by the Association OR any member.

Therefore, if the nuisance is enough of a nuisance to you, you may always exercise your authority granted by the CC&Rs and bring legal action against the member to bring the activity into compliance.

Typically, a PM/MC is only the first step in the enforcement process. They verify a violation exists and sends out the first notice. After that, the Board must make decisions on how they wish (or if they wish) to proceed.

Perhaps, if you can provide some examples of the activity that is causing a nuisance, better advice and different options can be provided.

Quote:
Posted By JulieB9 on 02/11/2014 5:58 PM

What is a correct way to seek out new management.

1) Read the contract between the PM/MC and the Association. There might not be cause to break the contract and you simply need to let the contract run out. Additionally, there may or may not be an auto-renewal clause that requires specific notice x days in advance of the intent to not renew. Therefore, it is imperative that the Board reads and understand the existing contract. When in doubt, seek a legal opinion.

2) Identify the duties and tasks the Board wants the PM/MC to handle. Be sure to read your governing documents to make sure that the task can be delegated. Note: Even though tasks may be able to be delegated, the responsibility for the tasks being completed still rests with the Board.

3) Write down what you have decided in a statement of work.

4) Using what you have written in step three, send this document to as many MC/PMs you can to solicit bids.

5) Check the references, licensing (if required) and insurance of those who responded. You might also want to check with the BBB and/or do an internet search on the company.

6) Select the top 3-5 candidates and set up interviews with the entire Board or a committee established by the Board.

7) Weigh the pros/cons, risks/benefits of each of the top candidates and enter into contract with one of them.

Note: this is the same process you would do with any contractor not just for MC/PM.

Hope this helps,

Tim
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
property management is not doing a good job in working with the board


Not much they can do. They own it, they can rent it even if you dont agree.

Quote:
homeowners who are delinquent on there HOA fees


The mgmt company cannot force people to pay. They can only suggest things such as foreclosure and its the board's decision to decide. Sounds to me like your board isn't doing their job.

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