Hiring a Management Company
Evaluate your current management company by asking yourself these questions:
The questions below are important to ask when interviewing a Property Manager.
- Are they proactive rather than reactive in their communication?
- Is your Property Manager easily reachable in the office or via mobile phone?
- Is your Association receiving the benefits of volume purchasing?
- Is your Property Manager knowledgeable in construction and facilities management?
- Does your management company have the technology to forecast building maintenance issues before problems occur?
- Does your Property Manager have extensive knowledge with Insurance and Risk Management?
- Educated in Directors & Officers coverage, Fidelity Bond, flood insurance, property and personal loss assessment (for fire, liability etc.) and other policy coverages?
- Is your Property Manager informing the Association’s insurance agent of various safety features in your building that can significantly contribute towards a lower premium (i.e. fire sprinkler system, security system, building retrofitting, no filing of claims (especially water claims) within the past three years, etc.); which in turn can maintain or possibly contribute towards a reduction in your monthly homeowners dues?!
- Has your Property Manager received the proper education and certification to manage your Association in compliance with state law?
- Do they have the Association’s best interest when performing their duties?
- Spending Association funds prudently without sacrificing quality and workmanship.
- Vigorously pursue delinquent HOA dues (late fees).
- Improving the standard of living expected from home ownership.
- Striving to maintain and improve the value of your home or building?
- Do they have any conflicts of interest with vendor performance?
- Do they obtain several estimates for large improvement projects?
- Do they use licensed (and insured) vendors and contractors?
- Do they profit from service-related contractors, vendors or suppliers (at the HOA’s expense)?
- Does your current management company charge additional fees beyond the scope of the management agreement (i.e. messenger services, deposit services, withdrawl services, fax transmissions, additional fees for impromptu meetings, etc.)?
- Are you getting complete financial reports on a monthly basis (or when requested)?
- Is your manager thoroughly prepared for Board and Association meetings including thorough knowledge of all governing documents of the HOA?
- Do they attend continuing education programs to keep informed on changing local, state and federal laws pertaining to property and association management?