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Looking for help finding a few Management Companies in Katy, TX to Sugar Land, TX area

Started by RogerJ1 β€’ 14 replies β€’ 381 views

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RogerJ1 (Texas)
Posts: 550
Posted:
My self managed, 56 lot, ~48 house POA is leaning toward getting a management company. There was no committee formed to explore management companies. Instead one lady is pushing the management company her prior, large HOA used. That company wants $1100 a month and based on its size and reviews, I suspect is a very poor fit.

Description of POA:

Always self managed, 56 lots, ~48 houses and only two true vacant lots as a few homesites are on two lots and each's second lot will not be developed.

Basics:
1) No community property - POA does not own any real assets, just cash and possibly office supplies, laptops;
2) No services;
3) Current POA costs are mainly electricity for some utility owned light polls, legal and small scale grass cutting and landscaping;
4) The grass cutting and landscaping services are on four entrances/monuments that are located on private, non-POA owned property (some of the members' lots);
5) Meetings are held at directors' houses;
6) The last Treasurer told me that in a normal month, accounting takes about 5 to 10 minutes to enter a few transactions into Quickbooks;
7) Tax filing is done via the IRS Form 990-N (e-postcard) which is filling-in/answering about 4 questions on an IRS site;
8) It is located in an incorporated part of Fort Bend County, south of Katy.

I assume this is as basic as a POA can be, and $1100 a month which is $20 per lot, is high. Also, the management company is a fast growing national company that I suspect will push for many non-needed, added-on services after becoming the management company, so that $1100 a month will grow.

I want to present around 3 better matched companies at the upcoming annual meeting. There seems to be many knowledgeable people on this forum who are located in Texas. So I am hoping some people could give me some good leads to explore.

Thank you for any help.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Roger

I suggest you look at staying self managed but hire a bookkeeper to handle collections, payments, etc. This could be done for $300 or so a month.
SheliaH (Indiana)
Posts: 6,964
Posted:
We aren't allowed to name specific companies or communities on this website, but you may want to Google HOA property management companies in your area. Put together a request for proposal and send them to some of the companies and see what comes up. Don't forget to ask for references and check them. Ditto for the bookkeeper if you take John's suggestion to go self-managed.

There are a few Texas based property managers who post on this website - You may be able to send them a private message and get assistance that way.

Regarding self management, it can work for a small community with few common areas and amenities, but it can also be a lot of work for the board. You will need people who know to pay attention to detail and If that's not what You and your colleagues want, it may best to theory a property manager

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RogerJ1 (Texas)
Posts: 550
Posted:
It probably would not change situation much, but edit: #8 was written incorrectly. My subdivision is in an "un"incorporated area (not in a city limit nor in a MUD or other utility district - we have private water wells and septic systems.)
LetA (Nevada)
Posts: 2,679
Posted:
Do it the old fashioned way, l;et your fingers do the walking. Do you still get the Yellow pages phone book? If not go to your local regional library and use their phone book.
RogerJ1 (Texas)
Posts: 550
Posted:
Quote:
Posted By LetA on 01/02/2022 6:45 PM
Do it the old fashioned way, l;et your fingers do the walking. Do you still get the Yellow pages phone book? If not go to your local regional library and use their phone book.

I will call some real estate companies to see if realtors, in my area, have opinions of ones in my area.

Something on the search, when I do a "Google" search for my area and HOA management companies, the first three results I get are the three companies the lady, at my POA, said she "researched." I also did a search in other browsers and devices so my search would not be tainted by my search histories. I got the same three in all the searches I did - likely paid to be top of search results.

The lady brags about her extensive search for a management company, and others complement her on how much effort she put into it. It appears all she did was a simple search and then called the first three results, one of which was a company she already knew and is the one she is pushing. I.e., she likely put no effort into an important endeavor.
SheliaH (Indiana)
Posts: 6,964
Posted:
Googling isn't always an exact science - sometimes you have to change up the search terms to find what you need. In your case, it's possible the three com p makes you found are the only ones in your area that offer the type of services you need.

That said, asking realtors could be a great idea, especially if they've sold homes in other HOAs and have had to get information from their property managers. In fact they may be able to give you some insight on which ones seem to be more professional than others. If you find the same name coming up, that may be the one you want to talk to. And yes, this also works the other way.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RogerJ1 (Texas)
Posts: 550
Posted:
Quote:
Posted By SheliaH on 01/03/2022 7:08 AM
Googling isn't always an exact science - sometimes you have to change up the search terms to find what you need. In your case, it's possible the three com p makes you found are the only ones in your area that offer the type of services you need.

That said, asking realtors could be a great idea, especially if they've sold homes in other HOAs and have had to get information from their property managers. In fact they may be able to give you some insight on which ones seem to be more professional than others. If you find the same name coming up, that may be the one you want to talk to. And yes, this also works the other way.

Actual the goolging came up with many results. It is a useful tool, and I appreciate the suggestion because at this point it is a starting tool for me. I am just frustrated that it is the biggest decision my POA has taken, and I think the lady tasked with finding one putt little to no effort into it. So, I was venting that frustration in a swipe at that lady (not you.)
JustinP2 (Minnesota)
Posts: 5
Posted:
It’s obviously going to vary widely by property type but one thing we found helpful was looking at Real Estate/MLS listings. They usually list the management company and HOA fees to do some rough comparison.
KerryL1 (California)
Posts: 14,550
Posted:
in my area, if I Google a specific HOA, their Home page says who their MC is. Another possibility is to drive around and in HOAs that are similar to yours, get a sense of how well they're maintained (if that matters to you) and Google the HOA to see who manages it.

I'm curious about why you want to present three to the Owners at a meeting of the members? I can't recall--are you on the board?
RogerJ1 (Texas)
Posts: 550
Posted:
Quote:
Posted By KerryL1 on 01/03/2022 1:27 PM

I'm curious about why you want to present three to the Owners at a meeting of the members? I can't recall--are you on the board?

Just trying to make the best of a situation - I would prefer no management company, but since it seems to be the direction the current Board is taking as well as some vocal owners, I want to try to find alternatives, as I think the company they are pushing is a ill fit (fast growing, national company in ~15 states that has bad reviews from customers and employees.)

I think I learned what I am up against in that effort after my first attempt to find a different company. I initially called an ex-neighbor who has vast experience in real estate development, and currently lives in subdivision bordering mine that he developed. From his company I got a recommendation for a local, yet sizeable, company that has been managing that company's developments for ~25 years.

I called that management company this morning, talking with its owner and founder. She was not sure if her company was taking on new customers, as they keep their customer base to a manageable size. She said she would get her business development person to call me. Instead a few hours later she called me back to tell me a proposal had already been sent to my subdivision, asking for me email address so she could send it to me.

From that email I learned, her company, which I feel is a better fit since it is large enough to cover all bases but still regional and local in size and was referred by someone I trust, sent a very formal proposal to someone on my POA's Board in 2020 and is still on the Board and pushes the management company and most issues, but it appear that proposal was ignored - the email chain shows that management company replied checking in its proposal many a few times over the months after it originally sent the proposal.

That company, who again seems a better fit, was, and is, for $700 a month, full management. The large national company that is the only option the Board is currently presenting is for $1100 a month. Something smells.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Roger

I am not sure something smells but a national company may well have a larger overhead which translate into a minimum per home charge thus maybe the $1,100.00. A smaller local company probably has a lower overhead thus the $700.00 bid. I do not find this strange.
RogerJ1 (Texas)
Posts: 550
Posted:
Quote:
Posted By JohnC46 on 01/03/2022 2:12 PM
Roger

I am not sure something smells but a national company may well have a larger overhead which translate into a minimum per home charge thus maybe the $1,100.00. A smaller local company probably has a lower overhead thus the $700.00 bid. I do not find this strange.

Price is what it is. What I meant is the situation that people, on the POA board, would push an $1100/mo option over a $700/mo. And how it is being presented is worse - membership is not even being told the $700/mo option exists. For example, at a meeting a month ago, membership was told the other approached management companies have not been responsive, and being told that the $1100/mo company is the only company to respond. Yet I have a copy of a very formal proposal for $700 from one of the companies they claim was no responsive.
SheliaH (Indiana)
Posts: 6,964
Posted:
You didn't say if you're on the board (if so, have you discussed any of this with your colleagues?) Just because there's a cheaper option doesn't necessarily mean it's better for your community. You have to consider what the community needs and if you can get it for $700 a month, great, but if the other company provides more services the homeowners want anyway, it might be best to go with that company. It's not that the smaller company can't get it done, but you may have to deal with additional costs and by the time you add them up, you might find you were better off paying $1100.

You say you'd rather not have a management company, but as I said earlier, you have to consider if the board members are willing and able to take on the additional tasks self-management requires. If not, are there other homeowners (like you?) willing to take on those tasks? Are you willing to work under the board's direction? What happens if you or someone else isn't available when something needs to be done? What happens if you or someone else decides you can't or don't want to take on the task or tasks anymore - can you find someone willing to step up and take over.

If this is going to be discussed at the annual meeting, you'll have to make your case and see what happens. Hiring a property manager is no small thing, even if you're a small community - maybe you should offer to help the board do a deeper dive into what it wants the manager to do and determine who can provide the biggest bang for the buck. I agree with Kerry the annual meeting seems to be a weird setting to discuss all this - the association might be better off doing its due diligence first, then inviting interested companies to make a presentation at a special homeowners meeting where people can ask questions.

The board could then take those comments plus their review of the RFPs to make a decision. This IS a board decision, not necessarily something the homeowners vote on because the board is responsible for overseeing the overall operation of the community, and they have to determine the best way to do that.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TonyN2 (Illinois)
Posts: 62
Posted:
I'm really tech savvy so I was able to use Google to narrow my results down to a few management companies. After which, I vetted through a short screening process of my own. I now have found a single company in our area that I will be presenting to the board.

Beware that is not easy to find management companies for our HOA since we only have owners on the property. No rent = no profitable income = low motivation for the management companies.

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