If your current Homeowners Association (HOA) management company is slacking in communication and site drives, it may be time to consider a new one. While you are shopping for a new management company, look for experience in the industry, innovative technology for homeowners, and readily available community managers. A management company should be there to support both homeowners and board members.
While the end of the year is a popular time for annual meetings, it is also the time a lot of homeowners’ associations contracts with their management company may expire. This time of year is the time to reflect on your current management company. Are your neighborhood codes enforced, communication channels are thriving, and does the community feel supported?
When to Switch Your Management Company
If your contract with your current management company is set to expire soon, it is time to reflect on the current state of the neighborhood.
Lack of Site Drives and Enforcement – The first sign it might be time to switch companies is if site drives are not completed and enforcement is either being conducted incorrectly or not at all. A common mistake is violation letters being sent to the wrong homes, which panics homeowners and creates extra stress. Additionally, lack of enforcement can create a neighborhood that looks messy, lowering property values.
Poor Communication – Communication is a huge factor in any relationship, including the management company and the board. The community manager of the management company should have a quick response time, whether it is an emergency or a small issue. Homeowners and board members should feel their needs are addressed quickly, and when this falls short, it can negatively impact the relationship and create a lack of trust.
Lack of Trust – When having a management company oversee the bulk of your projects, finances, and communications, trust is incredibly important. The community expects projects to be completed on time and access to key neighborhood information. If a community manager puts off a project the board has asked them to complete, like replacing a streetlight or investigating a water leak, board members will feel nothing is being taken care of. Additionally, board members should have full access to the HOA’s financial documents, and a management company should never withhold that information. If the management company is, then it creates a barrier of distrust.
What to Look for in a New Company
Whether you are switching HOA management companies or looking to hire one for the first time, there is some things you should look for to help narrow the options.
Experience – When looking at a new management company, having one that has been in the business for a while can put them above competitors. There are certain legal situations and firsthand experiences that can only be handled with age and having a management company that has “been there, done that” will help keep emergencies from getting out of hand.
Technology – With the era of modern technology, your management company should follow suite. Having apps with payment plans, AI chatbots, and easily accessible governing documents at your homeowners’ fingertips makes board members jobs easier and a greater feeling of trust with community members.
Community Managers – Community Managers should be experienced and responsive to board members. Great community managers care about the community the same as homeowners and should be on top of fixing anything that comes up. They should be organized, as they help manage the HOA’s financials, and be readily available to answer frequent questions. Community Managers need to be able to make sure that homeowners feel well-represented.
When looking into a new management company, ask detailed questions about their experience, technology for homeowners, and community managers. Management companies should not hide information, and everything should be readily available.
Terminating your Contract
If you are on the board of directors and are dissatisfied with your current HOA management company, you might be able to change it. It all starts with the contractual agreement between the HOA and the management company. Contracts have timelines where they expire and/or come up for renewal, typically at the end of the year. This is the time where change can happen! Certain contracts require specific notice of time for termination, varying from 90 to 30 days. It is also important to note if notice needs to be given by mail, as to take mailing delays into account. Additionally, if you want to terminate early, keep in mind any penalties that may be charged to the community.
HOA management companies are the number one cost for HOAs, so it is important to have fair representation. With the duties of handling important documents and any repairs to the neighborhood, management companies need to be fully available for the homeowners they serve. If your HOA management company does not seem to do the job right, it is time to look into other options.
Looking for a new HOA management company for your smaller community? Contact JellyBird HOA Management for a free quote today!
