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CherieA2 (California)
Posts: 7
Posted:
Our property manager gave a 30 day notice to terminate their contract with us. We have a small HOA of only 13 units in calfornia so finding a manger to take us on with this short of notice and during this time of year will be next to impossible. We asked for an extension and they agreed to stay on till end of January. It took us a very long time to find their company to take us since we are so small. What happens if we have don’t find a new manager in time? Do they have to stay on until we do? If they don’t how does it work? We will do our best to find someone but it is going to be hard. Any suggestions also on finding a manager that will take a small HOA like ours?
Thanks!
SheliaH (Indiana)
Posts: 6,964
Posted:
If the manager has given you proper notice according to your contract, he or she isn't obligated to stay beyond January.

It's a scary thought, but you may not be as bad off as you think. Consider what the manager does for you and then see now you can contract out part of that work. For example. You can hire a bookkeeper to handle the books and if everyone direct deposits their assessments, you association bank may have services to help you further. A handyman can cone in to do maintenance as needed. You soon to be firmer manager might even know of some oeopke you can consider.

You will need to do your due diligence in selecting contractors, such as checking references and verifying licenses and workman's comp insurance if appropriate, but if all of you work together, with one group looking for the bookkeeper and another for the handyman.

You don't say how many people are on your board, but all of them will need to oversee a portion of association business. If you don't know how, you may want to check out the CAI website and look for educational materials on all HOA related topics, including self managed communities and best practices.

Finally, have a conversation with the outgoing manager to review what worked and didn't with your community. It may be size was the only problem because the profit isn't there, but if there were personality clashes between the board or other homeowners, you and your colleagues need to be quiet and listen to what's being said so you can work on that and make things easier for the next manager - the outgoing may even have some suggestions for you. Good luck!

PS - please watch out for conflicts of interest. It may be tempting to hire an owner's wife as bookkeeper, but you may run into problems if that person doesn't work out.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posted:
All is not lost. It's just a "break" between MC's. Are you doing a search now? Has your board discuss any changes it may want to see with a new contract? Has anyone reviewed the existing contract? Don't put down that it is impossible if no one has even made the first phone call or decision.

Former HOA President
CherieA2 (California)
Posts: 7
Posted:
Yes we are doing a search and diligently working on this. It took us a long time to find anyone who would take such a small HOA. Last search was months of calls daily . Any suggestions?
CherieA2 (California)
Posts: 7
Posted:
Thanks! The board is small with 3 members who all work full time. Good suggestions, appreciate it.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Plenty of small associations self manage, that might be your only option if you can't find any companies willing to take you on.

Escaped former treasurer and director of a self managed association.
CherieA2 (California)
Posts: 7
Posted:
Thanks we all have full time jobs. I myself am a manager so have no bandwidth to do that. My understanding is that legally we had to have one? Is that not the case?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
We self managed with 107 members. We just had a bookkeeper. They handles our collections and taxes. They were our POC for Forwarding information.

We all had full time jobs. It should only take a few hours a week at most for a small HOA. I worked 2 jobs, went to college, and was President of the HOA.

Former HOA President
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By CherieA2 on 12/05/2023 8:34 AM
My understanding is that legally we had to have one? Is that not the case?
California statutes do not require HOAs/COAs to use a professional (or paid) manager. For discussion, see https://www.davis-stirling.com/HOME/T/Types-of-HOA-Management.

For many of your legal questions, I highly recommend going first to https://www.davis-stirling.com/. The latter's search engine is remarkable, as long as you can come up with a key word that is close to describing the subject in which you are interested.
CherieA2 (California)
Posts: 7
Posted:
I wish that was case even with a manger it taking many hours of work because we have a property on the coast falling into the ocean . It’s not that straightforward like a regular property. But I appreciate your response.
CherieA2 (California)
Posts: 7
Posted:
Thanks so much! Very helpful
KerryL1 (California)
Posts: 14,550
Posted:
While highly unlikely it's possible your CC&Rs or even your Bylaws require that your HOA have a manager. So do double check them.

Yes, Davis-stirling.com is excellent for us Cali folk. Their Index is very, very good in helping you find what you need.

I'm wondering how a community manager can help your HOA with "property falling into the ocean." It seems you need a different kind of expert to help.

We do have a CA poster who seems to know a fair amount about managing smaller HOAs, Aidyl. Perhaps s/he can help.
CherieA2 (California)
Posts: 7
Posted:
Looks like our bylaws say we have to have one.
Yes, the project requires a consultant which we have but it still requires hours of coordination in partnership with the consultant. The consultants also use a project manager there just is still a lot for the board to do.

If the CA poster has a recommendation that would be amazing!

Thanks so much!
LetA (Nevada)
Posts: 2,679
Posted:
Self managing might be your only option. Sadly not enough hungry CAMS out there to take on a small portfolio.

How is the relationship between your vendors that the PMC has sent, like landscapers, Trades i.e. electric, Legal?

You might want to keep the attorney on as an as needed basis. That small of an HOA should not be that big of deal to pay the bills
and collect the assessments. Plenty of banks will help you set up a merchant system to collect assessments.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
We only have to have one if we did and our HOA.

Former HOA President
DavidG45 (Delaware)
Posts: 994
Posted:
Quote:
Posted By CherieA2 on 12/05/2023 10:44 AM
Looks like our bylaws say we have to have one.
Yes, the project requires a consultant which we have but it still requires hours of coordination in partnership with the consultant. The consultants also use a project manager there just is still a lot for the board to do.

If the CA poster has a recommendation that would be amazing!

Thanks so much!

How much were you paying your old manager?

I’m a little unclear on your issue. On the one hand, you are very small and you understandably feel most companies won’t want to waste their time. On the other hand, you say you have a massive project which presumably means a lot of billable hours; in which case it should not be hard to find someone when there is a lot of money at stake.

Could you quote your bylaws where they say the HOA must ourptsource property management?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Bad phone. We had to have an MC if we disbanded our HOA altogether. We self managed with a bookkeeper. I have not seen paying a MC as requirements.

Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
With David, Cherie, please cite th exact words in your Bylaws that state your HOA MUST have a community manager, or similar wording.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Cherie

With only 13 members, it should be easy enough to self manage by hiring a bookkeeper to collect and track dues, pay bills, etc. All other decisions made by the BOD.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By CherieA2 on 12/05/2023 10:44 AM
Looks like our bylaws say we have to have one.
Yes, the project requires a consultant which we have but it still requires hours of coordination in partnership with the consultant. The consultants also use a project manager there just is still a lot for the board to do.

If the CA poster has a recommendation that would be amazing!

Thanks so much!

You can change your bylaws.
DeanJ
Posts: 1,786
Posted:
Why for a 13 unit association do you need a manager? Pay someone part time to do your book keeping if you need to.

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