DorisB (Florida)
Posts: 9
Posts: 9
Posted:
What is the "Management Company" supposed to do? It seems that I always get the response, "It's not our job." Is it really necessary to have a management company?
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Duties of Management Company
Started by DorisB • 8 replies • 1806 views
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HaroldS1 (Arizona)
Posts: 314
Posts: 314
Posted:
Only if the board knows what they are doing and are willing to do all the work. A management company's duties are spelled out in the cotract. It depends on what the board wants them to do. Request a copy of your HOAs contract with the management company and see for yourself what they are being paid to do. Harold
JonD1
Posts: 2,350
Posts: 2,350
Posted:
In today's world it is hard enough to find "good" people to serve on the Board in that capacity, to expect anyone to perform the duties of the MC in addition is asking a lot.
Unless you have a small community or have many people with lots of free time willing to do the job I would think the way to go is with a MC.
They provide many services under the normal contract that some on the Board may find not to their liking if required to perform these actions in addition to their Board duties.
I would like to know how it is working for someone not using an MC.
Unless you have a small community or have many people with lots of free time willing to do the job I would think the way to go is with a MC.
They provide many services under the normal contract that some on the Board may find not to their liking if required to perform these actions in addition to their Board duties.
I would like to know how it is working for someone not using an MC.
KevinK5 (California)
Posts: 64
Posts: 64
Posted:
We are a small neighborhood with only 51 homes. We were self-managed for almost 20 years, but it has been a slow steady decline to the point where a couple of our rules are widely violated, people have given-up on a couple of eye-sore houses, no one wants to be on the board and be the “bad guy”, and the original friendly atmosphere has become one where anyone who wants to be on the board is considered to be doing it just so they can get their own variance approved.
For the past 3 years, I have been campaigning for a management company and finally got it done this year. We found a management company to do just the things we needed. Financials, enforcement, mailing newsletters, and assistance with record keeping at the meetings. We have various activists in the neighborhood who are good with going to the city commissioner meetings, forming work parties for our entranceway, and organizing block parties. I want to spend my time doing things that bring neighbors together to enjoy living here. I don’t want to spend time enforcing the covenants and personally pitting board members against the owners.
Kevin
For the past 3 years, I have been campaigning for a management company and finally got it done this year. We found a management company to do just the things we needed. Financials, enforcement, mailing newsletters, and assistance with record keeping at the meetings. We have various activists in the neighborhood who are good with going to the city commissioner meetings, forming work parties for our entranceway, and organizing block parties. I want to spend my time doing things that bring neighbors together to enjoy living here. I don’t want to spend time enforcing the covenants and personally pitting board members against the owners.
Kevin
BradD2 (Florida)
Posts: 418
Posts: 418
Posted:
Typically a Management Company will do the financials and the covenant violations. That means they write the checks and pay the bills that come to them as well as patrol the neighborhood every so often and write up violations.
Our Association recently went to being self managed after 9 years and four management companies. The problem with the last three management companies was they wanted to do everything themselves and didn't want to respond to the board. We were lucky to receive a response and get something done correctly by the second or third time. For us it was a waste of time and money that resulted in the funds dwindling and very little actually being done. We had to check and often redo almost everything they did and the delays they added were unacceptable. It didn’t matter what was in the contract; they did what they wanted and then just wouldn’t return phone calls or show up to our meetings. When we met with them in person they often said they would check into it or would get back with us on something.
It has been a lot of work but I believe that once everything is running it will not take a lot to keep things going. We are still drafting the policies that the Association will follow and once that is done we can begin fining and enforcing the covenants more strongly. We have setup a website with Community123.com and have posted all the important information and plan to use it to distribute information. It is saving us $7,000 a year (over 30% of the annual budget) by not using a Management Company and since we were doing everything ourselves it isn’t a lot more time. Once the Association is running smoothly again and we have done some needed maintenance, we may look at a Management Company again. I believe if you want something done right, do it yourself. The goal is to restore the Association to what it was just after the builder left and to build a sense of community pride. Time will tell if we can do it.
Our Association recently went to being self managed after 9 years and four management companies. The problem with the last three management companies was they wanted to do everything themselves and didn't want to respond to the board. We were lucky to receive a response and get something done correctly by the second or third time. For us it was a waste of time and money that resulted in the funds dwindling and very little actually being done. We had to check and often redo almost everything they did and the delays they added were unacceptable. It didn’t matter what was in the contract; they did what they wanted and then just wouldn’t return phone calls or show up to our meetings. When we met with them in person they often said they would check into it or would get back with us on something.
It has been a lot of work but I believe that once everything is running it will not take a lot to keep things going. We are still drafting the policies that the Association will follow and once that is done we can begin fining and enforcing the covenants more strongly. We have setup a website with Community123.com and have posted all the important information and plan to use it to distribute information. It is saving us $7,000 a year (over 30% of the annual budget) by not using a Management Company and since we were doing everything ourselves it isn’t a lot more time. Once the Association is running smoothly again and we have done some needed maintenance, we may look at a Management Company again. I believe if you want something done right, do it yourself. The goal is to restore the Association to what it was just after the builder left and to build a sense of community pride. Time will tell if we can do it.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Our HOA did not have a management company. It did have a Bookkeeper. A licensed CPA that was responsible for keeping the books and issuing checks. They did assist us in filing liens on delinquent property. Mostly through their legal contacts as a "favor". The bookkeeper had an attorney friend that helped us occassionally but wasn't the associations lawyer. His services cost us money each time.
Our board was still responsible for issuing notices to the owners. However, we used the bookkeeper's office to draft and mail out the notices if need be. The bookkeeper was NOT responsible for the enforcement of the rules JUST the notification. It was just easier since they had to issue the money for the envelopes, stamps, and office supplies to send out a notice. If I wrote the notice, I would have had to ask for reimbursement for such items.
Everyone always believes the board has some kind of secret agenda. That their way always gets passed. That's most likely true based on the people on the board are the ones MOST active in their HOA. The real issue with HOA's is homeowner APATHY and thinking just paying their dues will get them what they want. Any changes to that and you bet they are the first ones to criticize and call for the heads of the board members.
It may be time for your HOA to get a management company. I applaud your efforts so far in running without one for so long. Our HOA has run about 20 years now without a MC. Each year is different from the next. I would evaluate how things are going after the first year of the MC to see if things are progressing the way you like it. Try to make a MC's contract on 1 year increments to best make it easier to get out of if need be. The board still is responsible if in conflict and they should still be in control of the operations even if more hands off in some areas.
Our board was still responsible for issuing notices to the owners. However, we used the bookkeeper's office to draft and mail out the notices if need be. The bookkeeper was NOT responsible for the enforcement of the rules JUST the notification. It was just easier since they had to issue the money for the envelopes, stamps, and office supplies to send out a notice. If I wrote the notice, I would have had to ask for reimbursement for such items.
Everyone always believes the board has some kind of secret agenda. That their way always gets passed. That's most likely true based on the people on the board are the ones MOST active in their HOA. The real issue with HOA's is homeowner APATHY and thinking just paying their dues will get them what they want. Any changes to that and you bet they are the first ones to criticize and call for the heads of the board members.
It may be time for your HOA to get a management company. I applaud your efforts so far in running without one for so long. Our HOA has run about 20 years now without a MC. Each year is different from the next. I would evaluate how things are going after the first year of the MC to see if things are progressing the way you like it. Try to make a MC's contract on 1 year increments to best make it easier to get out of if need be. The board still is responsible if in conflict and they should still be in control of the operations even if more hands off in some areas.
Former HOA President
JM2 (Oregon)
Posts: 439
Posts: 439
Posted:
Hi Doris:
I used to work for a MC; they had four levels of service:
Financial Only - collected dues, paid bills.
Participatory - financials plus 2 hours/month of manager consulting service for the board.
Enhanced - the PM managed the association but didn't attend board meetings.
Full - PM handled everything and attended board meetings.
It all depends on what's in your contract. Regarding comments above, part of what you get depends on whether the MC also does maintenance work, or if they use outside vendors/contractors for maintenance work. Some MC's have divisions that do everything from changing light bulbs to minor repairs to landscape service to major repairs; others utilize outside companies to do all of that, and stick strictly to managing the whole thing. Best thing - as suggested above - is to request a copy of the contract for review, to know what they are supposed to be doing.
J. Patrick Moore, CMCA
I used to work for a MC; they had four levels of service:
Financial Only - collected dues, paid bills.
Participatory - financials plus 2 hours/month of manager consulting service for the board.
Enhanced - the PM managed the association but didn't attend board meetings.
Full - PM handled everything and attended board meetings.
It all depends on what's in your contract. Regarding comments above, part of what you get depends on whether the MC also does maintenance work, or if they use outside vendors/contractors for maintenance work. Some MC's have divisions that do everything from changing light bulbs to minor repairs to landscape service to major repairs; others utilize outside companies to do all of that, and stick strictly to managing the whole thing. Best thing - as suggested above - is to request a copy of the contract for review, to know what they are supposed to be doing.
J. Patrick Moore, CMCA
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Doris, it is not necessary to have a management company. That is a voluntary decision made by the Board (often with homeowners input). The Management Company is required do what the Board and the management company agree to which should be spelled out in a Management Agreement. And any other duties which are agreed upon in writing at a later date. I have attached an example Agreement we use after modifying it to the specific needs of each Board.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Clicked too soon, here is the attached Management Agreement.
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