Articles
How to Change Your HOA Management Company
HOA management companies handle a community’s day-to-day operations. Their services generally include maintaining common areas, managing financials, and enforcing rules and regulations. However, the level of service provided is not always equal and may not satisfy the needs of the community, residents, or Board. Sometimes, the Board faces switching HOA management companies due to poor communication, lack of transparency, or simply a change in the homeowner’s association’s priorities or needs.
Table of contents
Know What Your HOA Needs
Before you search for an HOA management company, you must clearly understand your association’s unique needs. Some of the things you should consider include the following:
- Community Size: The size of your community will impact the services you need from a management company. A larger community may require more frequent maintenance, implementation of community staff, and a higher level of financial management, while a smaller community may need less support.
- Priorities: What are your community’s top priorities?
- Budget: Your community’s budget will also impact the services you need from a management company. Consider how much you can afford to spend on management fees and ensure the management team can deliver the necessary services within your budget.
- Expertise: Finally, consider the specific knowledge your community needs from an HOA management team and HOA manager. For example, if your community requires extensive landscaping and outdoor maintenance, you should include a company with this expertise in the search process.
Qualities to Look for When Changing HOA Management Companies
Experience and Expertise
One of the most critical factors to consider when choosing a new management company is its experience and expertise. You want to choose a company with a proven track record of successfully managing similar properties. At AAM, we have decades of experience managing various properties, including single-family homes, master-planned communities, lifestyle communities, and condominiums. Questions to ask: How long have they been in business? Do they have experience managing communities similar to yours?
Services Offered
Another essential factor to consider when selecting an HOA management company is its range of services. A good HOA management company should offer a wide range of services to cover all aspects of your community. Some services to look for include financial management, administrative support, and vendor management. Additionally, the company should clearly outline its service offerings so you can determine if they meet your community’s unique needs. Questions to ask: do they offer the specific services your community needs? How do their fees compare to those of your current management company? Are there any hidden fees or charges you should be aware of?
Customer Service
Another essential factor to consider when choosing an HOA management company is its customer service. Your management company will work closely with your homeowners, so you want to ensure they have a reputation for excellent customer service. At AAM, we pride ourselves on providing exceptional customer service to our clients. We understand that every association has different needs, and we work closely with our clients to meet those needs.
Professionalism and Communication
Selecting an HOA management company with high professionalism and strong communication skills is crucial. You want to choose a management company that is responsive and proactive in communicating. At AAM, we have an open-door policy and encourage our clients to reach out with any questions or concerns. Our Client Relations division and regional leadership teams respond to HOA Board member concerns to resolve them quickly and diplomatically. We also provide regular communication through newsletters, email updates, and meetings.
Financial Management
Managing finances is one of the most critical aspects of HOA management. You want to choose a management company with a reputation for excellent financial management. At AAM, we have a team of experienced accountants dedicated to managing your association’s finances. We provide regular and accurate financial reports and work closely with clients to create budgets and financial plans.
Technology
With the ever-evolving technological landscape, it is essential to select an HOA management company that is up to date with the latest technology. At AAM, we use state-of-the-art software to manage all aspects of HOA management, from accounting to communication. Our online portal and mobile app allow homeowners to access important information and make payments online, making the process more convenient for everyone.
Considering the above factors, you can make an informed decision to ensure that your community is well-managed, efficiently run, and highly functional.
Request a Proposal from Potential HOA Management companies
Once you have a list of potential companies, contact them and request proposals. Ask for a detailed proposal outlining their services, fees, and additional costs. Ensure the proposal clearly describes the company’s experience, credentials, and references. We have an article, HOA RFP Specifications, that can aid HOA Board Members in preparing an RFP.
Once you’ve identified a management company you want to work with, you must communicate your needs and expectations. This is the time to ask questions about their services, fees, and processes. You should also be clear about your community’s priorities and any specific needs you have. Some of the things you should discuss with the potential management companies include the following:
Scope of services
What services will they provide? Will they handle financial management, maintenance, association records, and rule enforcement?
Fees
What are their fees, and how do they compare to your current management provider? This can be tricky. Be aware of low management fees; unfortunately, it’s common for HOA management companies to pad other costs, such as envelopes, printing, and mailing, to make up the difference. Make sure you are thorough when reviewing fees.
Communication
How will they communicate with the Board and homeowners? Will they provide regular updates and reports?
Expectations
What are their expectations for the Board and homeowners? What are your expectations of them? It is always a good idea to conduct a walk-through of the community with potential service providers.
Accreditations
It is also essential to check if the management company is licensed, insured, and accredited by industry associations. This accreditation ensures that the management company adheres to industry best practices and maintains high levels of professionalism.
Communicating with the new HOA management company ensures everyone is on the same page and the transition is as smooth as possible.
Notify Your Current HOA Management Company & Prepare for Transition
You must notify your current HOA management company after selecting your new HOA management company. Please provide them with written notice of your decision to terminate their services. Ensure that you follow the termination procedures outlined in your current contract.
Preparing for the transition is essential once you’ve chosen a new HOA management company. This will help ensure the switch is smooth and your community’s needs are met. Some of the things you should consider include the following:
Communicate the Change
Communicate the change to all homeowners in your community. Provide information on the new management provider, its services, and what homeowners can expect during the transition.
Organize Important Documents
Organize and transfer all important documents and information to the new HOA management company. This may include financial statements, contracts, governing documents, and other relevant information.
Coordinate with the Current HOA Management Company
Work with your current HOA management company to ensure a smooth transition. Provide them with any necessary information and ensure that no outstanding issues need to be resolved before the transition.
Establish a Transition Timeline
Establish a transition timeline with the new company. This timeline should include key dates for document transfer, the start date for the new company’s services, and any other important milestones.
Conduct a Walk-Through
Schedule another walk-through of the community with the new Community Manager. This will allow them to become familiar with the community and any maintenance needs.
Preparing for the transition can ensure that your community’s needs are met and that the new management provider can begin services immediately.
Monitor the Transition
Monitoring the new HOA management company’s performance is essential during the transition. Ensure that they follow the contract and provide quality services. Regular communication with the new company will help identify issues and ensure a smooth transition.
Board members often need help with decisions that require implementing changes in a way that doesn’t disrupt the association. Switching to a new HOA management company is one of those decisions. It can be incredibly challenging if the Board has no experience with transitioning or has had a negative experience in the past. However, by choosing a management company with a dedicated team focused on streamlining the onboarding process, you can be confident that the transition will be smooth, professional, and respectful to your community and its residents.
At AAM, we understand the importance of a seamless transition when switching HOA management companies. That’s why we have a dedicated Transition Team to ensure the process runs smoothly from day one. Our team follows a well-defined transition plan, which sets clear benchmarks for task completion at 30, 60, 90, and 120-day intervals, tailored to the size and needs of the community. With the help of advanced technology and effective communication, our experienced team can assume the association’s management without causing disruptions to the community’s daily operations. We are committed to providing excellent customer service and financial management to the residents right from the start.
Some of the things a Board should consider during the transition process:
Regular Communication
Establish regular communication with the new Manager throughout the transition. This will help you stay informed of any issues or challenges and ensure the transition is on track.
Monitor Financials
During the transition, monitor the community’s finances closely. Ensure that all financial information has been transferred to the new management company and that there are no discrepancies or billing issues.
Review Maintenance Reports
Review maintenance reports to ensure your community management company properly maintains the community. This includes things like landscaping, building maintenance, and repairs.
Address Any Issues Promptly
If you identify any issues during the transition, address them promptly. This will help ensure that the transition stays on track and that your community’s needs are being met.
By monitoring the transition to the new community management company, you can ensure that the process is successful and that your community’s needs are met. This will help ensure a stress-free transition and a successful long-term relationship with the new management company.
Conclusion:
Changing your HOA management company can be daunting, but with proper preparation, it can be a smooth and successful transition. By communicating the change, organizing important documents, coordinating with the current management company, establishing a transition timeline, and conducting a walk-through, you can ensure that the new management company is prepared to meet your community’s needs from day one.
If you’re an HOA Board Member considering changing your community’s management company, consider AAM HOA Management. With decades of experience managing communities of all sizes, AAM has the expertise and resources to provide your community with the highest level of service. We understand that each community is unique, and we work closely with our clients to provide customized services that meet their needs. With a focus on communication, transparency, and quality service, AAM is committed to delivering our clients the highest level of satisfaction. Contact us today to learn more about how we can help your community thrive with our top-tier HOA management services.