How to Select an HOA Management Company
Homeowners associations are run by dedicated board members who are passionate about creating an enjoyable living environment, protecting property values, and maintaining the community. However, the board is composed of volunteer homeowners who choose to spend their free time leading the HOA and may or may not have a strong background in management, finance, law, business, and other key areas. Bringing in outside help by way of partnering with a property management company can offer valuable insights, assistance, and management service to help the association thrive and fill in any gaps.
There are many different options available, so choosing the right homeowners association management company to fit your community's needs is essential. An effective relationship can improve quality of life for members and allow the board to focus on more pressing issues rather than being tied up in day-to-day operations. Kuester Management Group is proud to offer a multitude of services and has a long history of serving as a trusted HOA management company in Charlotte NC, Huntersville NC, Wilmington NC, Myrtle Beach SC, and Fort Mill SC.
Benefits of Working with a Professional Management Company
Board members typically have full-time jobs, families, and other obligations. A management company's focus, however, is supporting the board and the community. Services can include everything from administrative services and financial management to coordinating regular maintenance activities and helping resolve conflicts. Management teams provide a wealth of knowledge, expertise, and access to resources that board members may not have. They can help with issues such as:
Steps to Choosing an HOA Management Company
Once your association has decided to enlist outside assistance, it is time to find the right service provider. This is involves more than simply picking the first company that comes up on an Internet search. In fact, your association's governing documents may require going through a specific process and soliciting bids. The HOA should take its time and do its due diligence to find the right fit.
Get Members Involved
Assemble a search committee that includes both board members and volunteers. This decision will affect the entire community, so let homeowners be involved in the process and handle some of the responsibilities. Select members who have backgrounds in different areas and can offer unique perspectives and insights.
Assess the HOA's Needs
Before you can choose a company, you need to know what you are looking for. Sit down and reflect on things the association does well and areas where it may be struggling. What tasks take up the most of the board's time, and where could they use additional support? Larger communities with more amenities may be more demanding and complex to manage than smaller associations without as many members or assets. Decide how much the HOA can afford to spend on services as well and set a budget.
Create a Request for Proposal (RFP)
This is a comprehensive document you will send out to solicit bids from prospective management companies. It should clearly outline specific services the association is looking for, expectations, and budget guidelines. This same request should be sent out to all potential providers so bids can be fairly evaluated against the same terms.
Review Submissions
Once the HOA begins receiving proposals, it can compare its options. The committee can weed out any bids that do meet the bidding specifications and select several that it wants to evaluate in more detail. Depending on the scope of service and anticipated cost, the governing documents may specify how many bids are required. A good rule of thumb is three to five.
Prioritize what services or benefits are most important and see how each proposal measures up. The committee should compare different criteria and rank the companies accordingly during this evaluation process. Remember that the most expensive company may not always offer the best service, and likewise, just because a company costs less doesn't necessarily mean the quality of service is lower.
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Interview Candidates
Just like businesses interview potential employees before offering them a contract, the committee should do the same with the top management companies. Coordinate a face-to-face meeting and have a list of questions prepared. Ask for clarification or additional information regarding their RFP responses, but also get a better feel for who the company is and how they operate.
Secure a Contract
After deciding which HOA management organization can best meet the association's needs and goals, work with your legal team to review and sign a management contract. This sets the terms and conditions that both parties are agreeing to and puts everything in writing. A legal professional can ensure the HOA is getting a favorable deal and there are no vague or questionable clauses.
Questions to Ask When Interviewing a Management Company
You want to be prepared when meeting with prospective candidates in order to get the information you need to effectively assess their qualifications. The committee should brainstorm and create a list of questions it will ask during the interview process. Here are a few considerations to keep in mind:
How long has your company been in the industry and the area?
A long history of HOA management experience is a good sign that they understand the industry and the challenges that community associations face. While they may have a wealth of experience, also find out how long they have been serving your specific area. An established local presence can mean they have built connections with vendors and service providers nearby and that they are familiar with local and state regulations governing HOAs. That is not to say that larger management firms that operate in multiple states have not honed their expertise.
Don't be afraid to ask for references, reviews, or testimonials from clients the company has worked with. Contact other HOAs to learn more about their experiences and if they would recommend the management company to others.
What services do you offer?
Your bidding specifications outline what the HOA is looking for, but the company may offer other services the board hadn't considered or overlooked. And while two companies may provide the same service, the scope may be different. Get into the nitty gritty details so you know what to expect and exactly what is covered if you sign with them.
What education and qualifications do your employees have?
Do they require their employees to engage in regular professional development or hold industry credentials through organizations such as the Community Associations Institute (CAI)? Are there subject matter experts available in different areas such as financial management, insurance, or HOA law?
How engaged are your community managers?
Is the manager someone who will be readily visible throughout the community or only stop by when called? How accessible are they via phone, email, or in person if the HOA has a question or problem? Good communication and availability are key because they will be working closely with the board and enforcing community rules.
Making the Most of Your Relationship with an HOA Management Company
The board and homeowners should feel confident in the experience, capabilities, and services provided by the HOA management company selected. Engage in regular communication to ensure that the management team has access to everything they need to get started and provide effective support to the association. They may want to sit down with the board to go over the governing documents, any software systems that are used, previous records or reports, and any questions they may have. The board may have questions of its own as well as things get underway.
It is important to maintain regular communication so that everyone is on the same page and meeting expectations. If there are concerns or performance is falling short, the association should notify the management company to get things resolved and continue having a productive partnership. Kuester Management Group is proud to offer reliable, quality service and support to community associations throughout the Carolinas.?