PM Contract

Started by TeenieR • 8 replies • 1181 views

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TeenieR (Virginia)
Posts: 4

Posted:

My Association recently held an Executive Session to discuss our PM's contract along with raises for the property staff. The contract was presented to the BOD at the beginning of the meeting and reviewed for 15-20 mins with the Property Manager present. I did not feel comfortable approving this document and stated that fact. The PM explains to the BOD that the contract remained "pretty much" the same and she was still waiting on information regarding benefits quotes. Is it typical to hire PM that does not work for a PM Company? Is it typical for an Association to pay benefits for the PM and all the employees she has hired? Our Association consists of 270 condos and 183 townhomes with a staff of the PM and 2 office assistants, 1 person for maintenance person and part-time grounds men. It was also voted on during this meeting that the staff receive $1.00 raise. Currently we do not have any reserves and we have not been provided with a copy of the last audit. It was stated that an Audit has not been completed due to lack of funds.

MicheleD (Kentucky)
Posts: 4,491

Posted:

I dunno if it's common or not, but I would not have voted on the contract the way you explain it here.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By TeenieR on 03/30/2009 8:24 PM
My Association recently held an Executive Session to discuss our PM's contract along with raises for the property staff. The contract was presented to the BOD at the beginning of the meeting and reviewed for 15-20 mins with the Property Manager present. I did not feel comfortable approving this document and stated that fact. The PM explains to the BOD that the contract remained "pretty much" the same and she was still waiting on information regarding benefits quotes. Is it typical to hire PM that does not work for a PM Company? Is it typical for an Association to pay benefits for the PM and all the employees she has hired? Our Association consists of 270 condos and 183 townhomes with a staff of the PM and 2 office assistants, 1 person for maintenance person and part-time grounds men. It was also voted on during this meeting that the staff receive $1.00 raise. Currently we do not have any reserves and we have not been provided with a copy of the last audit. It was stated that an Audit has not been completed due to lack of funds.

Teenie,

A PM does not have to work for a PM Mgmt co; he/she can be an independent contractor. But, if the assn is paying benefits, then he/she becomes an employee of the assn. I think it better to hire him/her as an independent contractor at a flat contracted price with no benefits. Of key importance is to know what his/her qualifications are. Has he/she taken any courses such as the ones offered by CAI; is he/she a registered CAM? As for the employees of the PM, if the assn is paying their benefits then they are employees of the assn. It might be cheaper to contract with a maint man and a landscaping co for grounds maint than paying a salary and benefits to these individuals.

Frankly, I'm at a loss as to how the BOD could approve the new contract w/o having all the info, i.e., lack of benefit quotes. Also with a depleted reserve account and no funds available to pay for an audit (and who knows what else!!), to approve a raise for the PM's employees doesn't seem very prudent to me. If I were a board member, I'd be asking a lot of questions. . .

SusanW1 (Michigan)
Posts: 5,202

Posted:

Establish a committee to work with this PM on the contract and bring it to the board in better shape. Board time should not be used up with these kinds of ground floor issues. And ES can accomplish very little if the vital details are not worked out. This is an important position and needs attention.

Your reserve fund issues and imcomplete audit ARE issues that the board needs to concentrate on.

RuthF1 (Washington)
Posts: 117

Posted:

As a BOD (or owner) am I allowed to request a copy of the PMs contract?

EllenS1 (Florida)
Posts: 1,148

Posted:

Ruth,

You are ABSOLUTELY entitled to a copy of the current contract and any new contract being considered.

GraceH (Virginia)
Posts: 224

Posted:

Ruth,
When you request the contract, make sure that you state that you are requesting a copy of the contract including the job description and duties. I recently requested our PMs contract and found 3 forms of compensation in the job description that should have been listed in the employment agreement that the Board members were not aware of before they renewed the contract. Most people are not looking for hidden items. You just assume that compensation would be listed under compensation, not hidden in the job description.

RuthF1 (Washington)
Posts: 117

Posted:

Thanks I figured I had that right. I didn't think to make sure I spelled it out but with this group that is a great suggestion.

It is getting so silly now that I can't even describe it. I am taking the back door approch to most just being helpful to owners I haven't met or barely know me.

I have called them out on having secret meetings. So far no response. If they don't respond by the meeting on May 7 I will mention the law stating that they are required to have meeting minutes.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Ruth, I would also imagine there is some requirement for all meetings to be noticed. So if they are not even noticing the full board, they may be treading a thin legal line.

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