Posted:
There are a lot of older conversations on this website about changing management companies - you may have to do some searching. Meanwhile, this is what I usually suggest:
First, consider why you want to get rid of the current company. Are they not doing the things you're paying them to do, don't do it well and/or have gotten too expensive? I think the current company should be aware of problems and given a chance to resolve them. You would talk to the property manager (and his/her supervisors), develop an improvement plan, set a deadline, PUT IT IN WRITING, and then review the performance in, say 6 months. If the company wants to keep your business, it may be willing to reassign the property manager who works with your community. That may be all you need to resolve problems - if you can get a new manager, the board should sit down with him/her to discuss expectations.
While you're at it, consider if your board is trying to micromanage the property manager or wants something that isn't part of your contract. Pull it out and read it (you'll have to do that anyway if it becomes necessary to hire another company). By the way, ALL board members need to read the contract - if you want, each person takes a section and provide a summary to everyone else. Pay special attention to the parts about renewing or canceling the contract.
Before your sit-down, you may want to poll the homeowners and see what they like and dislike about the current regime. That'll give you additional information to discuss with the company as well as what you should consider before hiring another one. Note if the homeowners have unrealistic expectations of what the property is supposed to do - letting the homeowners know what the property manager can do vs. the board is the board's job. Remember, the property manager works at the board's direction, so if the homeowners are asking for something that's not in the contract, they should be taking those complaints to the board for follow up.
If you're going to go ahead and change companies, think about what you'd like the next company to do so you can develop a request for proposal (RFP).
Google HOA property manager (or property managers), see what comes up, and send your RFPs to everyone. As you get responses, you can start doing your due diligence - ask for references and check them, see if any of the property managers have taken specialized classes on managing HOAs, if they've been the subject of lawsuits or complaints (the consumer protection division in your state may or may not handle those complaints - ditto the BBB, but ask anyway). It's best that you consider at least 3 companies, but there may not be that many in your area.
After finding someone you really like, have them come to the community and take a walk through with one or two board members to see what they'd have to deal with. Perhaps you could have a special homeowner's meeting where the candidate can introduce themselves and homeowners can talk about what they'd like to see. Make it clear the board is still doing evaluations, but wanted the candidates to get a chance to hear from some of the homeowners as to what they need and want.
When you've selected the company, you'll need to send a formal notice to the current company of your intentions. You should also have a transition plan to ensure all records are sent to the new company, dates when the old regime will end and the new one begins, who homeowners should be contacting in the process, removing the manager's access to association funds, etc. This is not something that happens overnight - be sure you're giving yourself enough time to keep track of what's done and when, and resolve problems.
Oh, and have your association attorney review the new contract before it's signed.
So, that's one person's opinion. I'm sure everyone else will have some does and don'ts (a few are property managers and have walked this road). Good luck!
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius