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Subject: Management companies
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Author Messages
PatriciaC15
(North Carolina)

Posts:1


06/21/2021 8:11 AM  
Our community will have to choose a management company in the near future. We need advice about how to accomplish this task.
JohnT38
(South Carolina)

Posts:646


06/21/2021 8:17 AM  
Posted By PatriciaC15 on 06/21/2021 8:11 AM
Our community will have to choose a management company in the near future. We need advice about how to accomplish this task.




When we went trough this I googled "example landscape RFI" and found several that helped us get started. You need to clearly define what services you want before you get started. You'll also need to research prospective companies or get referrals so that you can decide who will be sent an RFI.
CasieJ
(Alabama)

Posts:1


06/23/2021 5:05 PM  
I am a property manager in Alabama. The transition process is different for every management company, but generally the process is as follows: Written notice of cancellation to current management company, sign contract with new company, new company obtains physical & digital files to create an owner database, and new management company sends written introduction notice to all members of the HOA.
TimB4
(Virginia)

Posts:17640


06/23/2021 5:53 PM  
Some resources:

CAI-NJ Management Transition Best Practices

Changing Managers or Firms? Don’t Overlook the Details!

9 Steps On How To Change HOA Management Company

The Ultimate Board Cheat Sheet to Completing an RFP

[SAMPLE] RFP for HOA Management Company


Actual RFP (request for proposal) from an HOA
MarkM19
(Texas)

Posts:825


06/23/2021 6:48 PM  
Patricia,
If you want go answers from this or any other site it requires good information about what your needs are? This does not and should not be exact details but general information such as.

1) How many units in your HOA?
2) Single Family Homes or Condos?
3) How old is your Association?
4) How many services do you need from a PMC?
5) What are your current dues?
6) What Amenities are in your HOA?
7) What makes this change happen at this time?
8) How many years has the current PMC been doing or not doing the Job?
9) How long have you been on the current board?
10) Is the board in agreement with making a change?

I always like to remind people that this is a tuff change for HOAs. I have done it twice during my 11+ years on boards. It effects every owner because they will all have to change who gets paid. They also have to learn who to call for services and complaints. Who knows if you will get a better PM or someone worse. The person who actually becomes the new face of the PMC will have to learn all the ropes which means what projects are ongoing? How everything works or doesn't work in your HOA. Do you have someone who will be willing to give the time to make this transition successful? If the answer is no you can expect many new unhappy owners who will judge your board for making a bad decision.
MikeH24
(California)

Posts:13


06/29/2021 8:36 PM  
https://echo-ca.org/article/how-good-your-management-company/

Applicable for any state I think.
MichaelS56
(Minnesota)

Posts:205


07/01/2021 4:34 PM  
Make sure that the Management company has a web-site that explains the services they offer and how do they do the services such as finance, maintenance etc. One very important item that is at times neglected is communication between the Board and the company especially with the company rep that serves the HOA. How do they communicate? How quickly do they get back to phone calls or emails?

Before you sign any contract with a Management company, the Board CLEARLY understands the details of the contract. May be have an ad hoc committee of interested owners look it over.
MichaelS56
(Minnesota)

Posts:205


07/01/2021 4:34 PM  
Make sure that the Management company has a web-site that explains the services they offer and how do they do the services such as finance, maintenance etc. One very important item that is at times neglected is communication between the Board and the company especially with the company rep that serves the HOA. How do they communicate? How quickly do they get back to phone calls or emails?

Before you sign any contract with a Management company, the Board CLEARLY understands the details of the contract. May be have an ad hoc committee of interested owners look it over.
DonnaR5
(Virginia)

Posts:126


07/02/2021 1:01 PM  
Does anyone have any direction for researching the best management companies to send your RFP to?

Creating an RFP is pretty straightforward, but finding companies and narrowing the field is more challenging, I think.
TimB4
(Virginia)

Posts:17640


07/02/2021 1:03 PM  
After research (internet, reviews, BBB complaints, etc. I would send to them all.

Some may decline to take on a new client and you want to have choices.



JanineR
(Tennessee)

Posts:154


07/04/2021 5:35 PM  
Posted By MikeH24 on 06/29/2021 8:36 PM
https://echo-ca.org/article/how-good-your-management-company/

Applicable for any state I think.




I wasn't able to read this article without giving a credit card number.
Is there another way of reading it?
MikeH24
(California)

Posts:13


07/04/2021 10:14 PM  
Sorry about that. It's now pay-walled.


Try https://issuu.com/echoorg/docs/echo_2013_8_r2_single_1-48

...on pg 24.


I do recommend joining ECHO-CA if you're in California.
JanineR
(Tennessee)

Posts:154


07/05/2021 8:39 AM  
Thanks MikeH24, I got some good notes from that article!

By any chance do you have the "Board Members Guide for Management Interviews" that they referred to?
DonnaR5
(Virginia)

Posts:126


07/05/2021 9:02 AM  
I am almost done writing our RFP. Can anyone give an opinion on what is a reasonable amount of time that a company will need to prepare a proposal in response to the RFP? Do you think a month is sufficient?
JanineR
(Tennessee)

Posts:154


07/05/2021 9:19 AM  
I have never done a RFP for a management company, but have done hundreds for major construction projects.
I always first put in a date deadline to submit further questions.
Then after that deadline, distribute all questions and answers to all parties (without saying who asked the question).
This keeps the final proposals apple to apple.
JanineR
(Tennessee)

Posts:154


07/05/2021 10:14 AM  
I don't know the size of your community, but potential management companies may request to do a site visit.
(the ones that don't are questionable).

Without knowing the size of the community, I'm throwing out on this thread two weeks to submit further questions.
DonnaR5
(Virginia)

Posts:126


07/05/2021 10:23 AM  
We are 460 townhomes in Fairfax County.
JanineR
(Tennessee)

Posts:154


07/05/2021 11:03 AM  
This is only one opinion, others may have different advice. (my experience is not with management companies, but with construction)

Two weeks to submit further questions.
Then answers to those questions distributed to all potential bidders within seven days, if you can.
Then final bids a week after that.

---------

The questions that the companies ask will also give insight into how the companies work.
Some companies may ask if they can visit the property, and others won't. This also will also give you insight.
Be prepared to allow potential management companies to visit the property over the next two weeks.
Take a note of any questions asked so that all companies have the same answer.
DonnaR5
(Virginia)

Posts:126


07/05/2021 2:48 PM  
Thanks, that's useful.
MaxB4
(Maine)

Posts:701


07/05/2021 4:58 PM  
The items Mark M listed would be on my Request for a Proposal page as the initial contact information. When one come in, I would respond back asking for a Balance Sheet, Income/Expense Statement and the opportunity for an informal on-site visit. If I can't get those three things, I will respectfully decline the opportunity.
MikeH24
(California)

Posts:13


07/05/2021 10:18 PM  
Posted By JanineR on 07/05/2021 8:39 AM
Thanks MikeH24, I got some good notes from that article!

By any chance do you have the "Board Members Guide for Management Interviews" that they referred to?





I don't, but you can get examples from this ECHO form:


https://www.birchgreenpark.com/Form/21472~206289/ECHO-FORM

DonnaR5
(Virginia)

Posts:126


07/06/2021 7:52 AM  
At what point should the current management company be advised that we are searching for a new company?
MaxB4
(Maine)

Posts:701


07/06/2021 8:15 AM  
Posted By DonnaR5 on 07/06/2021 7:52 AM
At what point should the current management company be advised that we are searching for a new company?



They shouldn't
JohnC46
(South Carolina)

Posts:11180


07/06/2021 8:19 AM  
Donna

Why are you considering changing MC?
Have you sat down with your present company to try and iron out your differences/issues? I would do tha before changing company's.
If going out for bid, you might ask the present company to bid.
DonnaR5
(Virginia)

Posts:126


07/06/2021 8:24 AM  
I think we will send the RFP to our current management company.

We are looking to change because they have not done the contracted inspections and I get many homeowner complaints about lack of responsiveness, no answers to their calls.

There are also other concerns that I don't want to be specific about.
MaxB4
(Maine)

Posts:701


07/06/2021 8:36 AM  
Posted By DonnaR5 on 07/06/2021 8:24 AM
I think we will send the RFP to our current management company.

We are looking to change because they have not done the contracted inspections and I get many homeowner complaints about lack of responsiveness, no answers to their calls.

There are also other concerns that I don't want to be specific about.




If you are unhappy and are going to change, why add insult to injury?
DonnaR5
(Virginia)

Posts:126


07/06/2021 9:07 AM  
One board member's request, because she accidentally cc'd the management company on a message referring to the search process.
DonnaR5
(Virginia)

Posts:126


07/06/2021 10:19 AM  
What is a reasonable expectation for management companies to conduct inspections and drive-throughs of the neighborhood? I'm not talking about annual inspections of houses for violations. Just looking for whatever might need attention -- trash at the curb that isn't taken by the trash service (such as a couch), any landscaping that needs attention, that sort of thing.

Once a month? Twice a month? Weekly? I have no idea what's typical.
MaxB4
(Maine)

Posts:701


07/06/2021 10:24 AM  
Typically, agreements will call for once a month.
JanineR
(Tennessee)

Posts:154


07/06/2021 10:30 AM  
Our condos are 145 units, and this is what the agreement says:


The Manager shall visit the property three times per month to ensure compliance with all aspects of this Agreement and shall report the findings to the President of the Board or designee on a monthly basis.
These inspections will take place, at the Manager's discretion , between Monday and Friday between the hours of 9:00 AM to 5:00 PM
MarkM19
(Texas)

Posts:825


07/06/2021 10:32 AM  
Donna,
I guess you can get whatever you are willing to pay for.

Our Community has 1450+ homes and we have inspections done twice a month. One of the things I like about our new PMC is they have a separate team that does inspections. Sometimes PMs can get fixated on a small portion or problem area.

Our current provider uses to people who drive in separately one from the front of our Community and one from the back and they rotate every visit. This seems to be working for us. Our PM also will investigate if he get complaints from HOs or board members and can also issue warning letters as needed.
JanineR
(Tennessee)

Posts:154


07/06/2021 10:33 AM  
Our agreement also says:

The Agent shall report to the Board or its designee(s) any architectural control violations and any other violations of the Declaration, By-Laws and any Rules and Regulations of the Association which are observed by Agent on visits to the community and shall give notice of such violations to the responsible lot or unit owner. If violations cannot be resolved, the Agent will bring unresolved violations to the Board.
JohnC46
(South Carolina)

Posts:11180


07/06/2021 1:30 PM  
When looking to hire an MC some 4 years ago, three MC companies responded. Each priced out services and cost. Our MC priced out drive thru inspection once a month at a cost of $200.00 per month. We did not buy this service.
TV
(Washington)

Posts:55


07/12/2021 7:35 AM  
get a quote, copy of service contract and schedule A

ask for references

read reviews

beware evergreen auto renewal clause, and schedule A fees that can be invoked at the drop of a hat

it really is kind of a crap shoot. You won't know until 6 or more months into using the new company.
DonnaR5
(Virginia)

Posts:126


07/12/2021 8:43 AM  
What will Schedule A tell me? Do you mean the company's list of deductions on their tax returns?
MaxB4
(Maine)

Posts:701


07/12/2021 9:47 AM  
Schedule A is for addendums
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