Property Management Interview Suggestions

We are a newly elected homeowner controlled BOD of a 260 unit condo assoc.

We put out an RFP for new property management companies and 4 (including current one - former developer hired PM) will be interviewed by the board on Monday.

Any suggestions for questions that we should be sure to ask.

I have been utilizing the Community Assoc. Institute's web-site for guidance and have a good working list, but nothing like real experience to help us build our interviewing guide.

Thanks... MarianneG

Marianne, You may want search and read previous threads on this subject. Following is one of my replies:

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?