Are you having problems with your HOA management company? If the board has decided that your current management is not cutting it, you might be wondering about the next step. Is it time to change HOA management? Since this is a decision that shouldn’t be taken lightly, here are 5 signs that you need to consider.
Do You Need to Change HOA Management?
Your HOA management company may have been excellent in the beginning, but if you’re noticing a decline in quality of service or an uptick in HOA-related problems, it might be time to make some changes. Here are 5 signs that it’s time to switch HOA management companies.
1. Poor Communication
Maintaining an open line of communication is essential to the success of an association. This is one of the main responsibilities of your HOA management company.
However, if your manager is not responding to calls, emails, and other correspondence, it may be time to change HOA management companies. You want an HOA manager that responds to calls and emails within a reasonable time frame — ideally within 24 hours.
Communication is also important when it comes to HOA rule enforcement. If your HOA management company does not follow up on homeowner complaints and send violation letters, it might lead to larger problems for the association later. In this case, you may want to consider switching HOA management companies.
2. Inability to Complete Projects or a Lack of Follow-Through
Board members also come to rely on HOA management to deal with maintenance projects such as repairing water leaks and replacing street lights. Since these are urgent matters, you want an HOA management company that can attend to these issues promptly. If they are not up to the task, the association will not see any progress.
Moreover, if you have an HOA management company that lacks follow-through, it might be time to make the switch. You want an HOA management company that has strategic planning skills and a proactive attitude when dealing with community issues or projects.
3. Lack of Financial Accountability and Transparency
Financial management is one of the most difficult parts of running an association, so board members come to rely on the financial expertise of their HOA management company. You need to be able to trust them when it comes to tasks like accounting, bookkeeping, budgeting, collections, vendor payments, and so on.
If your current HOA management company does not have financial accountability or transparency, it’s time to reevaluate.
A good HOA management company will have your financial reports and documents readily available. They should also be able to guide the board when it comes to financial decisions and business processes.
4. High Turnover Rates for Managers
It’s one thing to fire HOA managers because of negligence or problematic behavior.
However, if there is no problem with the HOA manager, but the association is still seeing a high turnover rate, it might indicate more serious problems with your current HOA management company.
A high turnover rate for managers can also affect your association’s efficiency and productivity. It takes time for a new HOA manager to get to know your community, the residents, and how it functions. So, if you are constantly getting new managers in the span of a few months or a year, it might be time to change HOA management.
5. Outdated Processes and Technologies
As an HOA board member, you want a management company that is able to adapt to the latest technologies. In order to become a modern HOA, you need to have the tools and resources that will boost your efficiency and productivity.
For instance, social media platforms, messaging services, and video conferencing are new communication channels that can positively impact your association.
So, if your HOA management company is still using outdated processes and technologies, you might want to consider making the switch.
How to Change HOA Management Company
Once you have made the decision to switch HOA management companies, you need to make sure to make the process as professional as possible. Here’s how to get rid of HOA management the right way.
1. Check Your HOA Contract
You need to check your HOA contract for how to proceed with changing HOA management companies. A standard contract will have a termination policy included. The association might have to give a 30-day written notice to the HOA management company, prior to the expiration of the contract.
If you are terminating the services of your management company ahead of the contract’s end date, there may be fines and other procedures involved.
2. Inform the Community, Personnel, and Vendors
When changing HOA management companies, it’s also important to inform your community members, personnel or staff, and vendors. This is because they also regularly interact with the HOA management company. If they are aware of the change, they can already limit interaction and stop doing business transactions with the company.
3. Restrict Access
It’s highly likely that the HOA management company had access to your association’s bank accounts, financial documents, passwords, and so on.
As a precaution, the board should restrict their access or make the necessary changes to protect the association’s data.
4. Choose a New HOA Management Company
Even if you’ve had a bad experience with your current HOA management company, it doesn’t mean that you should give up on professional management completely. You just need to pick the right HOA management company that suits your homeowners association. Do your research and make sure to choose one that can meet the needs of your community.
How Do You Know It’s Time to Change HOA Management?
The relationship between the HOA management company and the board is crucial to the success of the community. So, if you have an HOA manager that is not meeting expectations, it’s time to reevaluate your contract.
Deciding to change HOA management companies is a major step, but hopefully, these 5 warning signs will help inform your decision. Once you change HOA management, the board will be able to pursue a company that is more responsive to the needs of your community.
- HOA Management Complaints: Is Your HOA Management Failing?
- 5 Things The HOA Board Should Prepare For The New HOA Management
- Is Your Community Better Off With A Self-Managed HOA?