Property managers’ scope of responsibilities

Started by KevinB6 • 16 replies • 2858 views

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KevinB6 (Illinois)
Posts: 36

Posted:

I am a board member for an association in the Chicago area. Last fall our property manager called an emergency meeting with an attorney on her own. She did not consult with any board members before scheduling the meeting. She sent out an email telling the board that the home owner, which she spoke, too was an attorney. She had a lengthily conversation with the home owner and his wife. The homeowner might be pursuing litigation against the association. After talking with the homeowner, he told me that they were upset by the way the property manager spoke to his wife over the phone. Have you ever heard of a board giving that much power to a property manager? Yes, we did try to question the property manager, but our president was protecting her. When another board member along with myself questioned the president about the situation; she indirectly accused us of neglecting our fiduciary responsibility and had an attorney speak with (threaten) us.

DavidW5 (North Carolina)
Posts: 565

Posted:

Kevin,

So far, all you've really told us is that the property manager met with a home owner. In our association that happens every day in one form or another and, by itself, doesn't imply how much authority the board has given the property manager. You said that the home owner was a lawyer. Would your concern be any different if the homeowner where a plumber? You mentioned that there was a possibility of litigation but it was not clear if that was the subject of the meeting. You'll need to give us more information.

KevinB6 (Illinois)
Posts: 36

Posted:

David,
The property manager spoke over the phone with homeowner (s) and then scheduled an emergency meeting with an attorney on her own. The meeting was about the home owner threatening litigation. My question is: is it normal for a property manager to have the power to schedule emergency meeting with attorney without first consulting the members of the board? I know for a fact that if the homeowner was a plumber, the property manager would not have given it a second thought. Before, I got on the board, I threatened litigation and nothing like this ever occurred. Also, I have been at meetings where other homeowners threatened litigation and the property managed never took such action.

Thanks,
Kevin

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I don't get it. Wouldn't you want your "property manager" to manage the property? Including taking complaints from home owners? The fact that they are an attorney or whatever they do for a living means nothing.

Simply a home owner and property owner having a conversation.

GlenL (Ohio)
Posts: 5,491

Posted:

No our MC did it once without BOD approval after being contacted by a H/O who was the former presidents wife and we made them eat it. Your problem as I see it is that if the BOD president and the PM are friends I would imagine the president would just say "I authorized it."

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

DavidW5 (North Carolina)
Posts: 565

Posted:

Quote:

Posted By KevinB6 on 05/28/2010 7:19 AM

David,
The property manager spoke over the phone with homeowner (s) and then scheduled an emergency meeting with an attorney on her own. The meeting was about the home owner threatening litigation. My question is: is it normal for a property manager to have the power to schedule emergency meeting with attorney without first consulting the members of the board? I know for a fact that if the homeowner was a plumber, the property manager would not have given it a second thought. Before, I got on the board, I threatened litigation and nothing like this ever occurred. Also, I have been at meetings where other homeowners threatened litigation and the property managed never took such action.

Thanks,
Kevin

Kevin,

Did the property manager schedule an emergency meeting with The ASSOCIATION'S attorney? Will the association be billed for the meeting by the attorney? If the answer to either of those questions is "Yes" then I think the property manager clearly exceeded her authority. If she contacted some other attorney, at her own expense then I don't see a problem.

In our association only the board president can direct the association attorney to take action. The property manager would have to go to the board president, explain the rationale, and convince the president of the need for the association attorney to get involved.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Kevin,

Frankly, I believe your board Pres needs to be put on notice. She can be removed from that office the same way she was elected to it -- by a vote of the board members. If a majority of the board members are unhappy about the PM's actions and the Pres' response, then I believe she needs to be informed of their displeasure. Accusing you and your fellow board member of neglecting your ficudiary resp and having an attorney speak to you just because you questioned the PMs actions is unconsionable to say the least. If I were you I would not stand for this. IMO, she had no authority to do this without a vote of the BOD.

The Property Manager also needs to be put on notice. She needs to understand that certain actions require authorization of the BOD, and scheduling a meeting with the assn's attorney is one of them.

KevinB6 (Illinois)
Posts: 36

Posted:

Glen,
The point is that I am illustrating that there is a fine line to being proactive and being reckless.

DanielH1 (California)
Posts: 482

Posted:

Some contracts allow a MC to spend a certain amount of money without Board approval.

Is this a money issue? Perhaps the MC's attorney is not being paid (yet).

DeborahB6 (New York)
Posts: 34

Posted:

The property manager is an employee of the Board. Even if she had good intentions it seems like proper procedure would have been to discuss the matter with the Board.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Kevin,

You need to read the contract between the Association and the Management Company. It should tell you what the person was hired to do. If they overstepped their authority they need to be reprimanded. If they obligated money without authorization (prior, implied or contractual) then they need to un-obligate it or, in my opinion, they should pay the bill out of their own pocket. If they refuse, I would strongly consider firing for cause and seek legal advise on further options.

Tim

RogerB (Colorado)
Posts: 5,067

Posted:

Our procedures on contacting an HOA's attorney is to GET APPROVAL IN ADVANCE FROM THE BOARD -- UNLESS -- there is an emergency which requires prompt action. In those cases, which happens from time to time, we get approval of the highest ranking officer available,i.e., President; if not available then the Vice President; if not available, the the Secretary; if not available, then the Treasurer; if not available then any other available Board member. If all this fails we make a sound business decision and proceed to either contact the HOA attorney or put on hold if the emergency does not justify violating our management agreement.

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By KevinB6 on 05/28/2010 6:53 AM
I am a board member for an association in the Chicago area. Last fall our property manager called an emergency meeting with an attorney on her own. She did not consult with any board members before scheduling the meeting. She sent out an email telling the board that the home owner, which she spoke, too was an attorney. She had a lengthily conversation with the home owner and his wife. The homeowner might be pursuing litigation against the association. After talking with the homeowner, he told me that they were upset by the way the property manager spoke to his wife over the phone. Have you ever heard of a board giving that much power to a property manager? Yes, we did try to question the property manager, but our president was protecting her. When another board member along with myself questioned the president about the situation; she indirectly accused us of neglecting our fiduciary responsibility and had an attorney speak with (threaten) us.

FWIW, I don't think this situation justifies anyone contacting the HOA's attorney!! The property manager needs to receive a saction or possibly be replaced. But before doing that the Board may want to have a Hearing with the PM, President, and homeowner being asked to present their side.

BarbaraD6 (Florida)
Posts: 347

Posted:

Kevin, did she call a meeting with the association attorney? If so I would make her pay the attorney's bill. We had to notify our last attorney that he takes his instructions from the Board not the manager. You have to keep on top of the management companies.

Barbara

KevinB6 (Illinois)
Posts: 36

Posted:

Barbara,
Yes she did call a meeting with the association's attornet, we had to pay for his time.

LincolnB (Washington)
Posts: 5

Posted:

Hello,

The responsibilities of a property manager will vary based on their salary and the specific terms of their management contract, but can include the following:

Responsible for Rent
Responsible for Tenants
Responsible for Maintenance and Repairs
Responsible for Knowledge of Landlord-Tenant Law
Responsible for Supervising
Responsible for Managing the Budget/Maintaining Records
Responsible for Taxes

TimB4 (Tennessee)
Posts: 21,059

Posted:

Lincoln,

What you describe is a property manager for a landlord.
The post is about a property manager for an Association.
Very different duties.

Additionally, this thread is over 7 years old.
It's best not to reactivate old threads.

Tim

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