Judgement Call Needed: Should Property Mgr Attend Board Discussion/Vote on Changing Mgt. Company?

Started by KellyM3 • 6 replies • 1447 views

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KellyM3 (North Carolina)
Posts: 2,239

Posted:

Experienced HOA board directors......

Do property manager representatives have any business participating in a board of directors' deliberation on changing said property management company. Our PM's are employees of a larger company that assigns them to client properties.

I err on the side of transparency in 99.9% of cases but should such transparency of contract discussion be extended to the point that the PM (who is blameless as a cause of vendor change) be allowed or required to sit in with us as we weigh our 2015 options? I don't mind conducting HOA business in full public but wonder if it would almost harassment or somehow low-class to have a PM sit there while we discuss leaving his employer.

I'm not too worried about state laws and Robert's Rules and all that.....I'm sure we're fine there. What's the "common sense" approach behind this. Our goal is to be professional, non-emotional and decisive as a board, regardless of vote outcome.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Since you asked for common sense approach, and since the individual is not a member of the Association, you could ask them to leave. Personally, they should know the issue is on the agenda and that bids have been or will be let. Therefore, in my opinion, I would hold the discussion until the end and ask that the individual leave the room as there can be a conflict of interest.

Just be sure that someone other than the PM is taking minutes that night.

CarolR11 (Colorado)
Posts: 2,563

Posted:

One way to do this, Kelly, could be to treat the situation as you would for any other vendor with which your board is considering entering into a contract. Interview all three or four firms' reps including your current one. Your current PM should not be present when you interview the other firms any more than, say, your current landscaper would be present if you were to interview alternative landscape firms.

Now if you know for certain that your board is going to choose a different MC, I think your current PM should not be present because it might hamper open, forthright discussion among directors, especially since he is blameless. Some directors may not wish to hurt his feelings or may fear that he'd take a negative decision against his MC personally.

But since he has no vote, I don't believe there's a conflict of interest involved.

RogerB (Colorado)
Posts: 5,067

Posted:

KellyM3, the answer to your question is the MC should absolutely not be present, period.

RichardP13 (California)
Posts: 1,767

Posted:

Kelly

Speaking as a manager, I would expect to not be included in any conversations or discussions about the possible change or review of management companies.

SheliaH (Indiana)
Posts: 6,964

Posted:

What Carol said - you could discuss everything in executive session, according to your governing documents. If you're already interviewing prospective companies, the current property manager should already know what he/she did/didn't do to let things escalate to this point, so if they haven't made a case for keeping the contract, it's probably too late.

Once you pick someone else, be sure you have a detailed plan in place to allow for a smooth transition and transfer of all Association records from the old property manager to the new one (it wouldn't hurt to get your association's master insurance company and attorney involved to look out for things the board might not think or minimize)

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Every single post is helpful. Thanks!

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