If you’re reading this article, then you already recognize the value of a good HOA management company. Professional management companies have a superb understanding of how to augment the value of homeowners associations by increasing efficiencies and reducing costs. They also give board members more time to complete important work.

   

Download our free request for proposal template

   

But, as you already know, there are many local companies to choose from, and the search process can feel overwhelming.

If you’re not sure how to approach this selection process, this brief guide can help you make a smart decision for your association.

   

Table of contents

• Define your wants and needs first
• There are different types of property managers
• It will take more than a quick Google search
• If the board doesn’t have the time, assemble a team that does
• Send out a request for proposal
• Conduct interviews
• Review the contract with an attorney
• Traits of highly rated management companies

   

Define your wants and needs first

Before you begin researching management companies, you and your team must define what the association needs from the company first.

If you don’t know what services you require, or how much the association can afford, then it’s going to make the research process far more challenging.

Perhaps the board just needs help with one area such as finances or managing communications with owners. Or, maybe the HOA needs a bit of help with everything.  Either way, identifying your needs will help you select a local management company that can cater to those needs.  

   

There are different types of property managers

Property management companies are becoming increasingly flexible, and many offer custom packages in order to meet the unique needs of their unique clients.

While you can certainly find standard packages, you can also get select services such as administrative assistance or financial management.

Larger companies may provide a team of managers, while smaller companies may have a core group of staff members who specialize in different areas.

Some HOAs will feel more at ease having an onsite manager, while others will be content with having a professional who works offsite most of the time.

When you know what your HOA needs, it will be easier to select the appropriate company for your community.

   

It will take more than a quick Google search

Searching for the best local management company online is a good starting point, but this process isn’t something that can be completed in a day.

You can and should use the web to find companies near you, but dig a little deeper to see if any of those companies have made it to the CAI Professional Service Directory.

Furthermore, if possible, ask other HOAs about the management companies they have hired. People are still the best source of truth when it comes to making recommendations.

   

If the board doesn’t have the time, assemble a team that does

While some boards will prefer to do all the leg work, others will have a research committee do the investigative work for them. The board is still responsible for making a final decision, but a dedicated research team can help narrow down strong options for the board.  

When creating a search committee, recruit someone who is familiar with HOA operations. This way, the research team isn’t starting from zero.  

The committee should include at least a couple of board members to ensure proper processes are followed.

   

Send out a request for proposal  

A request for proposal(RFP) is a formal request for bids from vendors. You can download an example of a proposal here.

RFPs should be detailed and include the HOA’s budget along with job requirements; submitting a thorough proposal cuts back on unnecessary back-and-forth communication between parties. Good proposals also help management companies determine if they are a good fit for the job.

Proposals can be sent through the mail, but digital proposals are much more efficient. Condo Control even has a vendor portal feature that allows board members to request quotes and have private conversations with candidates.

Ensure that you send the same RFP to all HOA management companies so that you can make a fair decision.

Once the proposals are in, evaluate the service proposal section first before looking at the fee proposal section. This way, the board can assess the merits of the company’s services without letting price influence the decision too much.

Consider using a points system to analyze the value of each company. Evaluate how important these qualities are to the HOA:

• Proximity
• Number and quality of services
• Cost
• Client history
• Availability

    

Conduct interviews

Once the board has created a shortlist of candidates, it’s time to schedule interviews. In-person interviews allow the board to get to know the HOA management companies a bit better. You can get a sense of what it would be like to work with the manager or team.

Ask as many questions as you need to in order to make an informed final decision.

   

Review the contract with an attorney

After selecting a winner, the HOA will be required to enter into an agreement with the chosen HOA management company.  

This contract will detail all of the rights and obligations of both parties. It should also be very clear about the management company’s fees, and terms and conditions for terminating the contract.

Have the HOA’s attorney look through the contract before signing anything. They will help ensure that the association is protected and isn’t agreeing to anything that could be harmful to the HOA. They can also look for an auto-renew clause and tell you more about how that works.

   

Traits of highly rated management companies

In addition to cost and services, it doesn’t hurt to look for these qualities when your HOA is in the process of selecting a great HOA management company.

   

Experienced

A company that has two or three decades of experience does have some advantages over a relatively new management company. For starters, they are much more likely to have established relationships with local vendors. Since they refer these vendors to their clients, the vendors often offer discounted service rates. Those savings are passed on to the HOA.

Seasoned management companies have also seen and solved a lot of problems. If your community is facing a unique issue, a manager who has been working with HOAs for many years will have the skills and knowledge required to solve the issue.

Finally, these established companies will have history. Past clients can tell you if the company met, exceeded or fell below their expectations.

   

Uses HOA management software

Forward-thinking HOA management companies are almost certainly using HOA management software. That’s because reliable software platforms help the company and the HOA.

Software allows managers to do more with the same number of resources. It automates tedious manual processes so that boards and staff have more time to complete tasks that software can’t handle.

Plus, it creates a digital record of violations, online payments, booking requests and more. Not only can the board and management access this software from any location, but HOA owners can use it through their smartphones to find information, pay dues or submit forms.

If you already have your own HOA management software, that’s great! Boards are encouraged to have their own software. Just let the company know that you expect the staff to use the platform while they are managing your community.

   

Skilled communicators

HOA managers need to have good communication and people skills. This is not negotiable. Most of their job will involve interacting with the board, their own staff, HOA members or other staff hired by the HOA.

Managers should be able to clearly convey what’s happening at the property, talk business with the board, help owners find solutions, and negotiate with vendors. They also need to know when to speak up and be assertive without aggravating owners or board members.

   

Organized

HOA management is a balancing act, and it takes a special individual to stay organized while managing a property. From budgets to repairs to rule amendments, an HOA manager must have exceptional organizational skills.

   

Assertive

This point is important because some boards want or need the HOA manager to take the lead. Whether it’s helping the board push ahead with a project, or getting enough owners out to reach quorum for the annual meeting, there are times when a manager will need to put pressure on their employers to get the results they want.  

   

Conclusion

Expect to see positive changes when you hire an HOA management company. Not only can the company enhance efficiencies and cut costs, but it can help to create a more harmonious living experience for owners.

Just make sure you do your research before you select a company, and have an attorney review the contract before you sign.  

Remember, a management company can be great, but if it can’t provide the services you need, or if the fees exceed your budget, it’s not the right company for your community.