RFP - Managers want our full budget

We're getting proposals pulled together for a new management company. One of the "big two" national chains and a mid-sized local firm are requesting a copy of our 2022 budget before providing their proposal/fee structure. When we decline to provide our financial info, they seem surprised. I feel like they are gaslighting just to figure out how much they can charge.

Is this really a standard practice now?

I see no problem. I believe it is a way for them to judge how much work it will be for them which could effect their bid.

Seems OK to me, too. The operating budget and reserves also show prospective MCs the complexity of the HOA, which might cost for a lot more work than simply the number of residences. I'd say if boards get simply an estimate without the MC knowing much about the premises, etc., you don't want them UNLESS the the HOA has very basic simples amenities.

JustinP2, how about the board casually asking these companies, "When you review our budget, what part of it, or what numbers exactly, are helpful to you in setting your bid?"

Justin

I am going to echo the comment of JohnT38 regarding underfunded reserves and high delinquency rates. I will add other financial issues to that list, such as assessment incomes which is borderline inadequate to meet operating requirements.

My wife and I own a small management company, we focus on condominium associations and HOA's which have fewer than 200 owners and which have few to no amenities. We will not manage a property with elevators or a swimming pool.

We have learned managing a property with inadequate reserves and a board which caves to the mooing and oinking which takes place when assessment increases are discussed is very wearing on the management company/property manager.

We have determined we will no longer bid to provide management services unless a full set of financial information is provided, including information regarding assessment increases if our analysis of the financials indicates the income stream is not adequate to address funding requirements.