Grounds for terminating your HOA's property manager?

Started by ChrisE8 • 9 replies • 670 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

ChrisE8
Posts: 454

Posted:

I've seen 2 property managers get terminated recently. Out of curiosity, what has caused your HOA to terminate its property manager: was it just general dissatisfaction, an expectation of better service with a new one despite no specific complaints or a definite screw-up that made the HOA mad?

Thanks.

TimB4 (Tennessee)
Posts: 21,062

Posted:

I would expect communication to be a big reason.

Other then that, it would depend on the terms of the contract.

BillH10 (Texas)
Posts: 1,217

Posted:

As a management company, we terminated a contract as we could not come to agreement with a client on the terms and conditions of a new contract.

An association in which we previously resided terminated the MC for not meeting the terms and conditions of the contract, specifically the requirements for compliance review, reporting, and violation notification.

The association in which we reside is contemplating termination of the contract with the MC due to turnover in the community manager position, subsequent inadequate training and lack of supervision of replacement community managers.

MarshallT (New York)
Posts: 414

Posted:

Hi,

It can be something as common as "poor fit", or the property manager may just not have enough experience to manage certain communities. If something in the agreement is not being fulfilled, then the HOA may look into terminating the contract.

If the property manager has created more issues than they have solved, then it's time to start looking for someone else.

GenoS (Florida)
Posts: 4,276

Posted:

We had a "poor fit". The CAM assigned to us by the management company was awful. Now the board terminated the management company contract for the sole reason of cost, but it was nevertheless warranted. You could argue the board should have contacted the PM's senior management to express their dissatisfaction in an attempt to negotiate a way forward, but when the CAM invented language regarding the need for new homwoners to be approved by the board, and started attaching bogus "approvals" to recorded deeds, it was no longer a tenable situation.

FloridaC1 (Florida)
Posts: 27

Posted:

Usually, community association managers get terminated because it's not a good fit. Sometimes the Boards change at election time and decide they want a new manager to fit the Board members perception. Some Boards are never satisfied no matter what kind of a manager they hire. My experience of being terminated by a Board after seven hours of interviewing within the first 90 days of a job showed me how much the manager is working at the mercy of a Board.

Let's flip it; my company just fired an Association due to bullying by the Board President. They received notification that they have earned the right to look for a new management company. Said Association chose one of my previous employers to manage them. That, is karma in a nutshell having been let go during the pandemic due to internal nepotism after a promotion. Go figure.

Reading this forum and review of all the complaints against community association managers and community association management companies reveals the entitlement that surrounds the community association dynamic with respect to Boards & owners and their management.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Sometime it is best for a business to fire a customer.

MarkM19 (Texas)
Posts: 1,459

Posted:

Chris,
I think the main reason why HOAs should look at replacing PMCs is if they are the original Developers Management Company. This type of MC is always hand picked by the developer and they work for the developer. This is okay when the HOA is just starting to sell homes but they allegiance will always be to the developer not the owners. They are given a lot of power to make day to day decisions and who doesn't like that power? Many of these companies are very large and do not adjust quickly when the HOA boards become owner controlled.

The analogy I will use hear is when you go to the Barber and tell him what you want him to do with your haircut and he gives you what he thinks is best.

This is why I have changed from PMCs in my last two HOAs. Both changes have been for the better. You still need to do your homework and make sure the next Company has a very Solid person who will become the face of the PMC. I am also very aware that this is always a risk because the Board will be judged by how well the transition goes and you always have to remember no one really likes change and when you make this decision it effects everyone.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

One of the main issues I see on HOA posts about PM's center around the BOD not understanding the role of the PM. They range for letting the PM run the show to expecting things from the PM not in the contract as in not paid for.

It is critical the BOD understands the role the PM is contracted to do and also, what they are not contracted to do.

Our PMC is basically our bookkeeper and plays the heavy when it comes to violations. We rarely talk to or see someone from our PMC. Our BOD, not our PM, runs the show here. Both are happy with deal.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here