Property Manager Conflict of Interest?

Started by DarylF • 11 replies • 1362 views

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

⚡ Takes 30 seconds

Already a member? Log in

DarylF (Washington)
Posts: 157

Posted:

I live in a new 86 home community where we just got turned over to the community. The HOA management company is a one woman at home operation, and she lives in the community (right down the street from one of the builders!). I know this is a huge conflict of interest. What are some key points I can use to convice our board that we should either become self managed, or at least find a different HOA management company.

Thanks!

PatrickH (California)
Posts: 204

Posted:

Hi Daryl,

I don't see why having your property manager living in your association is a huge conflict of interest. If you were self managed, then all your "property managers" would be living in your HOA!

If she does a good job for the HOA, it shouldn't matter where she lives. It might even be an advantage in a new HOA to have her nearby as the Board starts working out the details of running the HOA.

I'd say give it some time to see how well she does. If the work is substandard, then go out and look for another property manager.

I wouldn't recommend self management to anyone. It's too much work for volunteers to handle and the regular turnover of Board members means you'll always have new people trying to learn how to manage the HOA. You can probably find several threads on here where folks discuss the pros and cons of self management.

DarylF (Washington)
Posts: 157

Posted:

Well she has already been pretty bad and has made a lot of people angry.

She also had a trailer parked in her driveway while sending people warning letters for the same thing. I'm afraid that may be just a preview of things to come.

It was my understanding that the manager was suppose to be a neutral third party? Living there she will clearly have opinions on issues and be in a position to push her opinion, and collect the management fee ($12,000/year) to do so.

BrianB (California)
Posts: 2,820

Posted:

the property manager works for the board. She has no powers not given her, or allowed to her except through the board. If the PM is bad, it's because the board allows it.

I think the first thing to happen is that the board needs to step up and control the issues, THEN see if there really is a problem with her as a manager. Once the board sets clear expectations, then you can evaluate the situation and make a determination.

EllenS1 (Florida)
Posts: 1,148

Posted:

In Florida most hoa docs state that no member, board or otherwise, may be compensated for performing work for the hoa. They can only be reimbursed for out-of-pocket expenses.

EllenS1 (Florida)
Posts: 1,148

Posted:

Just curious. Is she licensed as a management company?

GlenL (Ohio)
Posts: 5,491

Posted:

In Ohio for a condo property you would have an automatic out:

5311.025
(D) Unless a contract or other agreement is renewed by a vote of the unit owners exercising a majority of the voting power of the unit owners association, neither the unit owners association nor the unit owners shall be subject to either of the following:

(1) For more than ninety days subsequent to the date that the unit owners other than the developer assume control of the unit owners association, any management contract executed prior to that assumption of control;

(2) For more than one year subsequent to an assumption of control, any other contract executed prior to that assumption of control, except for contracts for necessary utility services.

Studies show that 5 out of 4 people have problems with fractions

DarylF (Washington)
Posts: 157

Posted:

She runs her own management company, but I don't think they are required to have a license in WA.

We can get rid of her with 90 day notice now that we took over. That is in the CC&Rs. I'm just looking for all the ammo I can find to make sure there is no argument about getting rid of her. I'm not too sure about some of the board members thoughts on this.

The list of things she has done wrong, lies, and failures is pretty impressive on it's own though.

GloriaM (North Carolina)
Posts: 829

Posted:

Daryl:

Remember also if she was hired by the builder/developer her trailer could fall under the provisions that allows the builder/developer to have a trailer.

The board needs to evaluate her performance first instead of let's fire first and ask questions later. You may have a good person there. Investigate first and see.

DarylF (Washington)
Posts: 157

Posted:

The trailer is a personal trailer for her ATV's.

I could list all the problems we've had with her and it would knock your socks off.

She's given us no reason to continue her contract.

DougY (Washington)
Posts: 6

Posted:

It is possible for her to do a good job and live in the community, but it sounds like she is doing such a poor job that she should be fired whether she lives in the community or not. She sounds very unprofessional to say the least.

I would hold a board meeting without her and present the case to the board to immediately start searching for a new property management company. With the Boards approval, hire one and give her immediate notice. If she has a 60 notice clause, then follow it very closely and get as much documentation to the new company as possible before the transition.

The Board has to protect the homeowners from her poor/irresponsible actions. If they ignore her behavior, then they are just as liable and no one wins when homeowners sue the HOA.

I just took over an association in Vancouver,WA that has been around for 2 years and the previous management company never even helped the Board get a Fee schedule in place. They never sent a single letter of Violation even though they found many during their monthly site reviews. Why do HOA Boards suffer with poor service for so long?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By DougY on 06/05/2008 11:41 PM
It is possible for her to do a good job and live in the community, but it sounds like she is doing such a poor job that she should be fired whether she lives in the community or not. She sounds very unprofessional to say the least.

I would hold a board meeting without her and present the case to the board to immediately start searching for a new property management company. With the Boards approval, hire one and give her immediate notice. If she has a 60 notice clause, then follow it very closely and get as much documentation to the new company as possible before the transition.

The Board has to protect the homeowners from her poor/irresponsible actions. If they ignore her behavior, then they are just as liable and no one wins when homeowners sue the HOA.

I just took over an association in Vancouver,WA that has been around for 2 years and the previous management company never even helped the Board get a Fee schedule in place. They never sent a single letter of Violation even though they found many during their monthly site reviews. Why do HOA Boards suffer with poor service for so long?

Doug,

In answer to your last question: could it be because they promote it? Far too many board members are of the misguided opinion that the manager is in charge, instead of the other way around. I attended an HOA Training Academy in Glendale, AZ a number of years ago and was appalled to hear the majority of board members present express their utter disbelief at being told "they" are the boss, not the manager.

🎯 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