What to look for when hiring a property management company
November 27, 2024 | HOAs, Property Management, Property Manager, Rental properties, Security | Condo, Manager, Rental
Navigating the hiring process
For homeowners associations considering the hiring of a property management company, there are several best practices to keep in mind:
1. Review association bylaws thoroughly
Association bylaws are a critical component of a homeowners association, serving as the governing document that outlines the rights and responsibilities of both the association and individual homeowners. These bylaws define how various decisions are made, including the hiring of external services such as property management companies. Understanding these bylaws is essential for board members and homeowners alike as they navigate the complexities of community management. Before proceeding, boards should conduct a thorough review of their association’s bylaws to understand the scope of their authority. Key areas to focus on include:
- Decision-making processes
- Requirements for hiring external vendors
- Any restrictions on types of services that can be outsourced
2. Engage homeowner input
Obtaining feedback from the community can help ensure that the selected property management company aligns with homeowners’ expectations. Consider distributing surveys to gauge homeowner preferences.
3. Conduct comprehensive evaluations
When selecting a property management firm, boards should conduct thorough evaluations that may include:
- Review the company’s credentials and experience (community engagement, property maintenance, financial management, legal compliance, etc.).
- Inquire about the company’s software suite: Do they provide secure online access for owners and board members, real-time financial tracking, communication and automation tools that enhance owner satisfaction, and other highly sought-after features?
- Track record of handling disputes effectively and their capacity to manage urgent situations.
- Check references from similar communities.
- Understand the fees and services offered.
Legal considerations moving forward
Beyond adhering to bylaws, there are several legal considerations that associations should keep top-of-mind when hiring property management companies:
- Contractual clarity: Ensure that contracts with property management firms are clear and comprehensive to prevent misunderstandings.
- Compliance with regulations: Stay abreast of any local and state regulations that may affect property management practices.
- Liability and risk management: Consider how contractual agreements allocate risk and what liabilities the board assumes.
Conclusion
By carefully navigating association bylaws and engaging homeowners, boards can make informed decisions that enhance community management. Understanding the legal frameworks surrounding association governance is vital for effective property management and maintaining community harmony. Boards are encouraged to optimize their management practices, ensuring that any steps taken are in alignment with both legal guidelines and community interests. In doing so, they help secure a prosperous future for their association and its members.
