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LoriM15 (Florida)
Posts: 1,009
Posted:
We are changing property management companies on April 1. So far the process has been going smoothly - the new company is very organized and professional. They will have a transition PM from the new company on site for three months to get the new employees up and running. Unfortunately, our old employees had signed non-competes and even though we tried to get the old company to let us pay the liquidated damages in the contract to let them stay at our community, the company refuses to negotiate. It's not an ideal situation and we were naive to think that we could buy out their contracts.

Today I got a call from the regional director informing me that the new company "C" is not allowed on property or to interact with the old company "F" employees before April 1. We had hoped that our "F" employees could help train the "C" employees on our gate databases and systems, alarms, security, etc. The manager said that if there were procedures already documented they would leave them, but otherwise they are not going to help in the transition. Behind the scenes, "F" has been providing financial records and all the things they are required to do per the state statute.

I understand that "F" has no incentive to do this, but we were hoping that there would not be a knowledge gap between the contracts. Right now it looks as though the board is going to have to go in and grab a list of all vendors and contacts and also learn all the systems to train the "C" employees.

Any other suggestions or experiences in changing management companies like this?
SheliaH (Indiana)
Posts: 6,964
Posted:
This is why you sit down with the soon to be former property management company and set up a transition plan and both dudes sign off on it. You do not "hope" for or assume anything but have it spelled out so both sides know what's expected. Besides, they're losing a client- why on earth should they make things easier for their competition? What made you think that would happen?

I agree it does seem petty - sometimes the way you leave the stage is more important because you don't know if you'll want or need to do business again. But you'll have to learn from this and take an active role in the transition. Have a sit down (or several) with the oncoming manager and see what they need, and then each board member can take on a task to oversee. Some of you can work with tge new manager and others can work with the outgoing company to ensure everything's done efficiently before the changeover. Get your attorney involved so you do everything according to both contracts - especially if it becomes necessary for him or her to run interference on the association's behalf.

Keep homeowners informed and tell them there many be a few days when association activities are suspended to finalize the change so they'll have to wait until that's done before resuming regular operations.

There is a book on the CAI website about property managers, how to select them and such, and I belive it also discusses mowing from one company to another. Not that you'll do this again in a few years, but perhaps next time the board can read certain sections so they can avoid this.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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