Should we hire an HOA manager that also sells properties?

Started by CheyenneJ • 6 replies • 1574 views

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CheyenneJ (Texas)
Posts: 11

Posted:

Should our Homeowners Association Management company be allowed to include advertising about themselves and their real estate sales team in the community newsletter they circulate? If they are making their services available to us when some of us need to sell - offering to list properties - won't the management company be more likely to pay good attention to the needs of the association? They have lowered our expenses and been very responsive so far. Anyone have experience with management who also sells member properties?

MicheleD (Kentucky)
Posts: 4,491

Posted:

I would only include them if you also open up to other realtors to advertise AND if they paid for the advertisement.

"Letting" them include their advertising for free would get. . . messy . . . you never know how many people in your development may have family members who are realtors (or who may be themselves) who would jump at the chance for a free advert to a targeted audience.

TracieS (Colorado)
Posts: 460

Posted:

Is the newsletter YOUR association newsletter, and they simply mail it out? OR...is it a newsletter for the property mgt company that is mailed out to all the properties they manage?

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Cheyenne,
My opinion: Do not treat this realty company any different than any other realty co. Bad bisiness, will bring trouble. I think you made a mistake in hiring ma Management co. that is part Real estate office to begin with. However, special circumstaneces could dictate this, but best not complicate your life. Your association , is not in the real estate business, that is an owner domamin.

DonN (Michigan)
Posts: 357

Posted:

If your management company also has a real estate operation, the company has a conflict of interest. Does the manager serve the association or the company and its affiliates?

I suggest engaging a management company that does not have competing operations. Then the newsletter can contain ads from real estate companies and others without a conflict of interest.

Don Nordeen
Governance of Property Owners Associations

SusanW1 (Michigan)
Posts: 5,202

Posted:

The homeowners have the option of using this real estate company or not, right?

I am assuming this is the official HOA newsletter. The board needs to standarize the advertising policies for the newsletter - or drop them all together - and make sure the newsletter is "theirs".

I just don't see the conflict. (If it was a cleaning service or plumber, it would not be a conflict)

RobertR1 (South Carolina)
Posts: 5,164

Posted:

I think Don speaks from a world of experience and his suggestion are valid and should be seriously considered. Why look for trouble.

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