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SuzieE (California)
Posts: 20
Posted:
I’m currently on the Board of my small (less than 10 units) condo association in California. My previous posts have outlined multiple issues we’ve had with our PM. We are currently in the process of replacing the PM. During our last meeting, the Board voted & approved a contract for a new PM and voted to not renew the current PM contract. Per the terms of the contract though, 90 days’ notice is required. The PM was not present during the meeting. The following business day, the PM was notified via emailed by the Board that we had voted to terminate the current PM contract and we had voted and approved a new PM contract with "XYZ company". The Board also voted in a new landscaping contract/vendor during the meeting. The signed contracts were attached in the email to the PM.

The email to the PM instructed that they cancel all current landscaping agreements effective immediately and to execute the newly approved landscaping contract. Part of the problem with the PM is that our current landscaper was a renter who lives on the property and the previous Board only had a verbal agreement, nothing in writing and the person isn’t insured as is required by our ByLaws. The PM’s response when the current Board questioned this was effectively “so what, who cares?”. 2 of the 3 Board members did care which is why a new landscaping contract was voted on and accepted…..

A week after the PM was emailed to execute the contracts, the President called the PM to ask if the new landscaper had been contacted. The PM responded “oh you want me to do that?”. The President replied yes. It’s been 2 weeks and the landscaper says that the PM still hasn’t made contact. The landscaper has left a few voice messages for the PM but hasn't received a response.

This PM is self-employed and has no other employees so there is no one else in the “company” that the Board can contact or complain to in the hopes of producing a professional, productive result. When I was looking for a new PM, I spoke to someone who said they had acquired one of her clients and their experience was the PM has questionable practices. Rather than handing over the property documents to the Board or new PM, the PM placed the documents in a storage locker located on the property unknown to anyone else. The documents weren’t discovered until months later.

Since our assoc. is so small, we don’t have much participation from anyone else. Calling & emailing the PM aren’t providing much of a result. The PM currently handles all the financials. Would you recommend the Board take steps to remove financial control from the PM at this point? Any suggestions of what to do as a next step or advice on what worked/didn't work from anyone who has experience replacing a PM?
LarryB13 (Arizona)
Posts: 4,099
Posted:
Suzie,

Even though your contract with the old PM requires a 90-day notice, that does not mean you have to keep on having them perform work for you until that 90th day. You were not happy with her performance and there is no reason to keep on expecting her to do anything for you. At this point you should be asking her to return all your records that are in her possession.

Asking the PM that you are "firing" to take on the job of managing a contract your board negotiated with a new landscaper is not a good idea. She has no incentive to do the job and plenty of incentive to "poison the well" by filling the vendor's head with horror stories about your association. If your board is going to negotiate landscaping contracts I think you are out of line asking some third party to deal with that vendor.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By LarryB13 on 11/11/2015 11:08 AM
Suzie,

Even though your contract with the old PM requires a 90-day notice, that does not mean you have to keep on having them perform work for you until that 90th day. You were not happy with her performance and there is no reason to keep on expecting her to do anything for you. At this point you should be asking her to return all your records that are in her possession.

Asking the PM that you are "firing" to take on the job of managing a contract your board negotiated with a new landscaper is not a good idea. She has no incentive to do the job and plenty of incentive to "poison the well" by filling the vendor's head with horror stories about your association. If your board is going to negotiate landscaping contracts I think you are out of line asking some third party to deal with that vendor.


I agree.
GenoS (Florida)
Posts: 4,276
Posted:
Larry's advice is excellent. The only other thing I'd consider is knocking on her door in person and handing her a written demand for the return of your records. Give her 48 hours or a week or whatever to comply. Take someone along with you as a witness.
SuzieE (California)
Posts: 20
Posted:
Thank you, I appreciate the responses. The contract between our Assoc and the new PM isn't effective until the 1st of the year therefore we wanted the current PM, since we are still paying, to continue to process payments for the Assoc (collect monthly assessment and pay garbage & water bill). BUT I do see and agree with Larry’s point of the PM not being motivated to do their job. My opinion is if the PM is being paid, they should still have to abide by the terms of their contract…..but life isn’t fair and is it what is it.
As far as executing a landscape contract. The Board had approved a contract. The signed contract was sent to the PM. The instructions to “execute” the contract was basically the PM calling the vendor to see what day they could start and entering the vendor into her database so they would be setup to receive payment. But back to what Larry said, I agree and just need to take the situation for what it is.
SuzieE (California)
Posts: 20
Posted:
Would the Board need to have a meeting & vote on giving the PM a written demand to return our records? Sorry to ask a dumb question but I want to make sure the correct process is being followed. I was under the impression that the Board would need to meet & vote on having the PM return to the Board/President all Association documents in their possession within x number of days.

I really appreciate all the suggestions and any advice on how to handle the situation is greatly appreciated.

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