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KrystalA (Iowa)
Posts: 60
Posted:
Do you believe these are "unreasonable" requirements of a property manager?

1) Log all calls to vendors: date, time, person spoke with, small verbage as to what was discussed

2) For vendors that do not have a writeen contract, they must sign a "generic" one provided by the board. It would include timeframe to get the job done, requirements of the job, specific items to be used (such as type of mulch), clean up requirements etc.

3) Written follow up to all homeowners who have called, emailed or sent via the website. Follow up would include how their issue is being addressed and a copy of the letter to be copied to the board as well.

4) Allow members of the board to do reasonable follow ups with vendors. See if they had run into any issues or problems, recommendations, etc.

5) Require the manager to come onto the property to verify that all work was done satisfactorly before any invoice is paid. And be able to verify he/she did so.

6) Have at minimum 1 board memeber to be on all accounts including checking, savings, money markets, CD's etc. Board member can be restricted on check signing to prevent any abuses. Two - signature requirements for all checks

7) Require a minimum of three differetn bids from vendors for all works, and not to seek bids from vendors that the board has declined to work with.

8) Require the manager to treat all homeowners and vendors with complete professionalism.

9) Provide line-item of "office supplies" that are being charged to the board.

10) Provide weekly email update to all board members of any maintence work, or vendor work that is scheduled.

Is this asking too much, not enough??

KrystalA (Iowa)
Posts: 60
Posted:
Also forgot to add must not be discriminatory in who is fined or not fined.
DaneC (California)
Posts: 210
Posted:
Perhaps you should get quotes from 5 management companies to compare their services.
Another thought is to see if there are any CPA's in your area, who do HOA bookkeeping - they will generally handle your finances in a professional manner, and may usually work with a couple of Management Companies that they get along with.
hoatalk (California)
Posts: 603
Posted:
Krystal: First off, I agree on the advice to get bids and simply see what the market offers.

However, when asking for detailed services, there is another way to put this in perspective. Consider that ultimately you must cover the cost + profit of every hour you ask your MC to work. Consider how many extra hours you may be adding with each item and if you are really willing to pay for that level of service.

Now, I don't know the internal hourly rate of MCs, but I'll throw out some numbers. I read somewhere that the average base for community managers is in the $50-60k range. Add benefits, payroll taxes, insurance, etc on top of that and it costs the MC $62-75K for that employee to work about 2,000 hours/year. Now add apportioned overhead (office, phone, computer), etc and let's just assume a 'cost' of $45/hour. Add a slim 25% margin and the retail price would be $60/hour.

Now these numbers may be totally off base, but if we use $60/hr and just look at a few items:
(1) Take 10 min to log a vendor call. Cost: $10.
(2) Take 20 min to prepare, write and mail a homeowner follow up. Cost: $20.
(3) Come onsite to verify work done: 1.5 hours costs you $90
(4) Attend monthly board meeting: 3 hours with travel costs you $180

Just another way to consider it...


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JeanneK3 (Maryland)
Posts: 562
Posted:
You can prepare a rough draft of a management company contract that includes all the services you want and then have companies bid on it. Congratulations on actually giving it some thought. Too many condos/HOAs just sign a generic contract and then complain when they don't get the services they want.
BradP (Kansas)
Posts: 2,640
Posted:
Krystal:

HOATALK has a great point. If I were in your shoes I would send out a request for proposal to several MC candidates. I would highlight the basic packages and services you need done such as newsletters, collect dues and pay bills, covenant compliance, etc. Then I would add a separate add alternate section that talks about some things that you highlighted that you would like to get done and see what they would charge to do that. That way you can see what the base package is and then look at each extra and pick and choose if it is worth it to you. Numbers 4, 6, 7, and 8 to me are no brainers that shouldn't really cost more but is something you should incorporate into your contract with the MC.

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