💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

HanhN1 (California)
Posts: 64
Posted:
My HOA is located in CA. The current property management is very bad. We have five board members. Two new board members wanted to change, but the other two board members who have been on board from 10 to 20 years did not want to change. Do you know the ways to terminate the current PM and hire a new one? Thanks a lot.
RogerB (Colorado)
Posts: 5,067
Posted:
HanhN1, read your management agreement. All agreements specify the method by which they can be terminated. Usually it takes written notification received XX days in advance. Some may require cause, such as unsatifactory performance; others may be terminated without cause.

To hire a new management company
1) create a RFP (request for proposal) which provides specifics about your HOA and services desired;
2) determine which magement companies you wish to consider and mail them the RFP;
3) based on bids received interview the top three;
4) select one and develop a management agreement.
RogerB (Colorado)
Posts: 5,067
Posted:
Following is a copy of a previous post which may be of value.

08/10/2006 9:07 PM Quote Reply
Robert, As you said proposals tend to say similar things with the exception of costs. And since most RFPs do not provide sufficient details on services needed, and are in some manner ignored in bids, variations may be very difficult to normalized for cost comparisons.

I would start with an RFP and from the responses I would select the top 3 companies to interview. I would require interviewing the Agent who would be the managing Agent - not a "salesman". During a 30 minute interview I would start with the Agent giving a 5 minutes introduction to get a feeling for the person who you will have to work with. Then allow up to 15 minutes for Board members to ask questions and about 5 minutes for the Agent to ask questions. The last 5 minutes can be used to finalize any "loose ends". Ask for a copy of their proposed contract which will include the final services you desire and their costs for these.

Some questions to ask a prospective Managing Agent are:
1) How many years have you been a Managing Agent?
2) What is the average timeframe you have remained as the Agent for each of the HOAs you have managed?
3) How many HOAs do you currently manage?
4) What percent of all homeowners accounts are currently delinquent?
5) How many of times have HOAs you manage been involved in litigation for delinquent accounts?
6) Explain in detail how you inspect, document, and handle violations of restriction.
7) How many times have the HOAs you manage been involved in litigation for violation of restrictions?
8) Explain in detail your money handling procedures and your financial reports.
9) Explain my fiduciary duties as a Board member (this or a simialr question should be asked to give you some indication of their knowledge and willingness to provide guidance to the Board on important matters).

Some questions the Agent may ask are:
1) Why do you want to change your Managing Agent?
2) How long has your current Agent managed the HOA?
3) How long has your HOA employed that Management Company?
4) How many units in the HOA?
5) How often are assessments paid?
6) How often do you hold Board meetings and for how long?
7) How often do you want inspection of the HOA?
8) What common areas and amenities does the HOA have?
9) Do you comply with and enforce your controlling documents and laws?
MaryA1 (Arizona)
Posts: 7,043
Posted:
Roger has given good info on the bid process, etc. However, the first thing you must do is convince the other 2 board members that changing management company's is a wise thing to do. It would be a wasted effort to send out bids, etc. without a quorum of the board in favor of a change.
HaroldS (Arizona)
Posts: 906
Posted:
The most important thing is to be certain your mailing address is changed, because you can almost be certain that the fired mc will not bother to forward anything. That's how we almost lost our common area because the property tax bills never reached us and the replacement mc and board during those years never wondered about the taxes.
If possible, establish your own mailing address that will be permanent and not have to rely on an mc to get your important mail.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Good info, Harold. However, your problems could have been avoided if you had a board who kept on top of the issues. This is what happens when the board relies on the property manager to do everything and not knowing what is involved in running the assn. The Treasurer should have known when the prop. taxes were due and would have known if they weren't being paid.
SylviaV1 (California)
Posts: 9
Posted:
Our Board refuses to listen to us owners regarding a change of our HOA management. Can we as owners over ride the Board's refusal by sending out a vote to owners, and if so what is the percentage required if stimulated in any California law?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Sylvia... Welcome to this forum. However, this post is 8 years old. It's best to create a new topic for your question. Thank you.

Former HOA President
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By SylviaV1 on 09/12/2016 9:55 AM
Our Board refuses to listen to us owners regarding a change of our HOA management. Can we as owners over ride the Board's refusal by sending out a vote to owners, and if so what is the percentage required if stimulated in any California law?

The answer is no. You must be on the Board.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here