DavidG45 (Delaware)
Posts: 994
Posts: 994
Posted:
Can anybody provide me with sample wording for a Notice of Non-Renewal for our annual PMC contract that otherwise automatically renews each year?
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Notice of Non Renewal
Started by DavidG45 • 15 replies • 574 views
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TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
To Whom It May Concern,
This is to inform you that the Board of Directors, in accordance with the terms of our contract, have chosen not to not have the contract renew.
This action is not based on your companies previous service. The Board has simply chosen to solicit request for proposals for management services.
When your company receives our request, we hope you will return a proposal.
For the Board,
DavidG45 (Delaware)
Posts: 994
Posts: 994
Posted:
Quote:
Posted By TimB4 on 08/16/2023 1:10 PM
To Whom It May Concern,
This is to inform you that the Board of Directors, in accordance with the terms of our contract, have chosen not to not have the contract renew.
This action is not based on your companies previous service. The Board has simply chosen to solicit request for proposals for management services.
When your company receives our request, we hope you will return a proposal.
For the Board,
To Whom It May Concern,
This is to inform you that the Board of Directors, in accordance with the terms of our contract, have chosen not to not have the contract renew.
This action is not based on your companies previous service. The Board has simply chosen to solicit request for proposals for management services.
When your company receives our request, we hope you will return a proposal.
For the Board,
Thanks!
LoriM15 (Florida)
Posts: 1,009
Posts: 1,009
Posted:
Here's one we sent earlier this year:
This letter is to inform you that we wish to terminate our property management contract with xxxx as of March 31, 2023. This notice complies with the 60-day notice provision as required in our current contract.
Please feel free to contact me if you have any questions. We look forward to a smooth transition as we end our relationship with your company.
Best Wishes,
This letter is to inform you that we wish to terminate our property management contract with xxxx as of March 31, 2023. This notice complies with the 60-day notice provision as required in our current contract.
Please feel free to contact me if you have any questions. We look forward to a smooth transition as we end our relationship with your company.
Best Wishes,
DavidG45 (Delaware)
Posts: 994
Posts: 994
Posted:
Quote:
Posted By LoriM15 on 08/16/2023 2:41 PM
Here's one we sent earlier this year:
This letter is to inform you that we wish to terminate our property management contract with xxxx as of March 31, 2023. This notice complies with the 60-day notice provision as required in our current contract.
Please feel free to contact me if you have any questions. We look forward to a smooth transition as we end our relationship with your company.
Best Wishes,
Here's one we sent earlier this year:
This letter is to inform you that we wish to terminate our property management contract with xxxx as of March 31, 2023. This notice complies with the 60-day notice provision as required in our current contract.
Please feel free to contact me if you have any questions. We look forward to a smooth transition as we end our relationship with your company.
Best Wishes,
Thanks. I should have specified that we might very well sign a new contract. I just want to cancel the old one -- which requires 90 day notice -- and send out RFPs to them and a few others.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Is this your Finace Committee rec to the Board, David? Or are you on the Board now? In your case, Tim's suggested wording looks good with "companies" corrected..
DavidG45 (Delaware)
Posts: 994
Posts: 994
Posted:
I guess I do have a couple of other questions:
* Is it sufficient that the President signs this letter?
* Usually we would have our PMC mail this letter. I assume it would probably be better if a Board member does it - correct?
Pardon the elementary questions. I was elected to the Board last Thursday and named Board President Tuesday night, so it is going to take a bit for me to familiarize myself with the standard processes.
* Is it sufficient that the President signs this letter?
* Usually we would have our PMC mail this letter. I assume it would probably be better if a Board member does it - correct?
Pardon the elementary questions. I was elected to the Board last Thursday and named Board President Tuesday night, so it is going to take a bit for me to familiarize myself with the standard processes.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
It sounds like your HOA wants to change the current contract with the PM than cancellation. This is why one should only do 1 year contracts with option to renew. What we did is let ALL our vendors know we had a 3 bid process. They were welcome to submit their bid as one of the 3. It didn't give it priority. What it did do is allow the contract to be updated/changed every year. It is not always a situation where the PM wants to continue either.
The PM is a sub-contractor and their own business. So they should understand this isn't a personal issue. It is business. This gives oportunity for both sides to renegotiate terms. We had an accountant who was also our treasurer. They later moved and sold their home. We still kept their business. Just they were no longer officially on our board/HOA as no longer a member.
So let the PM know that your changing to a 3 bid process for each contract. That they are welcome to re-bid. However, we are going to give the proper notice because we want a few changes to the existing contract. This can be done when they submit their bid. In the meantime, you may find another vendor or ideas from those bids on what the HOA may want.
The PM is a sub-contractor and their own business. So they should understand this isn't a personal issue. It is business. This gives oportunity for both sides to renegotiate terms. We had an accountant who was also our treasurer. They later moved and sold their home. We still kept their business. Just they were no longer officially on our board/HOA as no longer a member.
So let the PM know that your changing to a 3 bid process for each contract. That they are welcome to re-bid. However, we are going to give the proper notice because we want a few changes to the existing contract. This can be done when they submit their bid. In the meantime, you may find another vendor or ideas from those bids on what the HOA may want.
Former HOA President
ElleN (Idaho)
Posts: 4,420
Posts: 4,420
Posted:
Dear xxx Management Company,
On March 31, 2023 the contract that the Sunny Meadows HOA has with the xxx Management Company will terminate and not be renewed. The notice herein complies with the 60-day notice provision of the current contract.
The Association Board looks forward to a smooth transition. Please feel free to contact me if you have any questions.
Sincerely,
Sally Smith
President
OBO Sunny Meadows HOA BoD
On March 31, 2023 the contract that the Sunny Meadows HOA has with the xxx Management Company will terminate and not be renewed. The notice herein complies with the 60-day notice provision of the current contract.
The Association Board looks forward to a smooth transition. Please feel free to contact me if you have any questions.
Sincerely,
Sally Smith
President
OBO Sunny Meadows HOA BoD
BillH10 (Texas)
Posts: 1,217
Posts: 1,217
Posted:
DavidG45
I understand you wish to provide notice of termination of the contract, but you may only wish to renegotiate certain provisions. If that is the case, I recommend you discuss a contract renegotiation with the existing PMC before issuing a notice of termination of the existing contract and before issuing bids.
My reasoning is this: if you can make changes to the existing contract with the existing PMC, doing so is far easier for both parties (and your owners) than issuing bids and going through the evaluation/selection process. It also does not unfairly waste the time of the other possible bidders.
I have the feeling you are satisfied with the existing PMC, with a few issues here and there (including the auto-renewal clause). Make a list of the changes you wish to see made, sit down with the PMC people, and see if you can come to an agreement. Changing the PMC is a very disruptive process which can last months. If you have a 90-day termination clause, you will be doing a transition in the middle of the Thanksgiving/Christmas holidays. Ugh!
I understand you wish to provide notice of termination of the contract, but you may only wish to renegotiate certain provisions. If that is the case, I recommend you discuss a contract renegotiation with the existing PMC before issuing a notice of termination of the existing contract and before issuing bids.
My reasoning is this: if you can make changes to the existing contract with the existing PMC, doing so is far easier for both parties (and your owners) than issuing bids and going through the evaluation/selection process. It also does not unfairly waste the time of the other possible bidders.
I have the feeling you are satisfied with the existing PMC, with a few issues here and there (including the auto-renewal clause). Make a list of the changes you wish to see made, sit down with the PMC people, and see if you can come to an agreement. Changing the PMC is a very disruptive process which can last months. If you have a 90-day termination clause, you will be doing a transition in the middle of the Thanksgiving/Christmas holidays. Ugh!
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By BillH10 on 08/17/2023 7:40 AM
DavidG45
I understand you wish to provide notice of termination of the contract, but you may only wish to renegotiate certain provisions. If that is the case, I recommend you discuss a contract renegotiation with the existing PMC before issuing a notice of termination of the existing contract and before issuing bids.
My reasoning is this: if you can make changes to the existing contract with the existing PMC, doing so is far easier for both parties (and your owners) than issuing bids and going through the evaluation/selection process. It also does not unfairly waste the time of the other possible bidders.
I have the feeling you are satisfied with the existing PMC, with a few issues here and there (including the auto-renewal clause). Make a list of the changes you wish to see made, sit down with the PMC people, and see if you can come to an agreement. Changing the PMC is a very disruptive process which can last months. If you have a 90-day termination clause, you will be doing a transition in the middle of the Thanksgiving/Christmas holidays. Ugh!
DavidG45
I understand you wish to provide notice of termination of the contract, but you may only wish to renegotiate certain provisions. If that is the case, I recommend you discuss a contract renegotiation with the existing PMC before issuing a notice of termination of the existing contract and before issuing bids.
My reasoning is this: if you can make changes to the existing contract with the existing PMC, doing so is far easier for both parties (and your owners) than issuing bids and going through the evaluation/selection process. It also does not unfairly waste the time of the other possible bidders.
I have the feeling you are satisfied with the existing PMC, with a few issues here and there (including the auto-renewal clause). Make a list of the changes you wish to see made, sit down with the PMC people, and see if you can come to an agreement. Changing the PMC is a very disruptive process which can last months. If you have a 90-day termination clause, you will be doing a transition in the middle of the Thanksgiving/Christmas holidays. Ugh!
Sound advice.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
I very much like BillH's advice too.
Congrats on joining the Board, David. I recall you've wanted to be a member. I also recall that you were pretty annoyed with the PMC in the past.
It's crucial to remember that boards govern non-profits, which I assume your HOA is, not presidents. It's the Board's decision whether to not renew and/or to solicit a proposal from them again. In my strong opinion, the language of "I" misses the Board's role in almost every decision. Note the Lori, a very active board member in her large HOA uses the language of "we." Once the Board votes on a process, the president may sign a letter or a contract.
Or, has this Board voted on a policy that the president makes decisions and acts on their own?
Congrats on joining the Board, David. I recall you've wanted to be a member. I also recall that you were pretty annoyed with the PMC in the past.
It's crucial to remember that boards govern non-profits, which I assume your HOA is, not presidents. It's the Board's decision whether to not renew and/or to solicit a proposal from them again. In my strong opinion, the language of "I" misses the Board's role in almost every decision. Note the Lori, a very active board member in her large HOA uses the language of "we." Once the Board votes on a process, the president may sign a letter or a contract.
Or, has this Board voted on a policy that the president makes decisions and acts on their own?
ElleN (Idaho)
Posts: 4,420
Posts: 4,420
Posted:
"We" misses the fact that the contract is with the corporation, not the board.
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
Since you are new to the board and have been appointed president, you might want to talk to the previous board president (assuming he or she left on a good note) so you can get some background on standard processes. If he/she doesn't or refuses to cooperate, try another experienced board member, preferably an officer (let's hope he or she has a good footing on how the processes are supposed to work).
As Bill noted, changing a management company is a big deal and you want to make sure everyone on the board understands the ramifications and the importance of developing a transition plan. That may or may not be a challenging task if most of the board consists of newbies
As Bill noted, changing a management company is a big deal and you want to make sure everyone on the board understands the ramifications and the importance of developing a transition plan. That may or may not be a challenging task if most of the board consists of newbies
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
LoriM15 (Florida)
Posts: 1,009
Posts: 1,009
Posted:
As a board president who has spent basically all of 2023 in a transition of management companies, I think taking Bill's advice is the right way to go. First, I found that trying to get the management companies we interviewed, including our old one, to change the terms of their standard contract was almost impossible. It was a "take it or leave it" attitude from them. And they did play hard ball.
Second, the transition itself has been very difficult. Not only are you dealing with a whole new company and the way they do business, you most likely have to deal with new personnel. Expect your financial reporting to be incomplete/completely missing for at least 3 - 6 months. Remember you will most likely have to change banks, which disrupts your residents paying their fees. After three months with the new company and countless emails and postal mailings, we still had a significant number of accounts that simply weren't being paid each month.
Bottom line - try to adjust your current contract first, before making the decision to switch management companies. It's a really difficult process. We made the right decision, but I had no idea how tough it would be.
Second, the transition itself has been very difficult. Not only are you dealing with a whole new company and the way they do business, you most likely have to deal with new personnel. Expect your financial reporting to be incomplete/completely missing for at least 3 - 6 months. Remember you will most likely have to change banks, which disrupts your residents paying their fees. After three months with the new company and countless emails and postal mailings, we still had a significant number of accounts that simply weren't being paid each month.
Bottom line - try to adjust your current contract first, before making the decision to switch management companies. It's a really difficult process. We made the right decision, but I had no idea how tough it would be.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By LoriM15 on 08/18/2023 8:51 AM
As a board president who has spent basically all of 2023 in a transition of management companies, I think taking Bill's advice is the right way to go. First, I found that trying to get the management companies we interviewed, including our old one, to change the terms of their standard contract was almost impossible. It was a "take it or leave it" attitude from them. And they did play hard ball.
Second, the transition itself has been very difficult. Not only are you dealing with a whole new company and the way they do business, you most likely have to deal with new personnel. Expect your financial reporting to be incomplete/completely missing for at least 3 - 6 months. Remember you will most likely have to change banks, which disrupts your residents paying their fees. After three months with the new company and countless emails and postal mailings, we still had a significant number of accounts that simply weren't being paid each month.
Bottom line - try to adjust your current contract first, before making the decision to switch management companies. It's a really difficult process. We made the right decision, but I had no idea how tough it would be.
As a board president who has spent basically all of 2023 in a transition of management companies, I think taking Bill's advice is the right way to go. First, I found that trying to get the management companies we interviewed, including our old one, to change the terms of their standard contract was almost impossible. It was a "take it or leave it" attitude from them. And they did play hard ball.
Second, the transition itself has been very difficult. Not only are you dealing with a whole new company and the way they do business, you most likely have to deal with new personnel. Expect your financial reporting to be incomplete/completely missing for at least 3 - 6 months. Remember you will most likely have to change banks, which disrupts your residents paying their fees. After three months with the new company and countless emails and postal mailings, we still had a significant number of accounts that simply weren't being paid each month.
Bottom line - try to adjust your current contract first, before making the decision to switch management companies. It's a really difficult process. We made the right decision, but I had no idea how tough it would be.
Good advice.
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