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10 Signs That You Need a New HOA Management Company
As a Board Member, you rely on your HOA management company to facilitate the day-to-day tasks and responsibilities of the Association. A great HOA management company helps streamline operations, enforce community rules, and ensure financial stability. However, not all management companies meet these expectations. If your HOA Board struggles with communication, financial mismanagement, or poor service, it may be time to reconsider your partnership. Sometimes, the Board identifies noticeable gaps in performance, which leads the entire community to feel the result of poor management and make a switch to a new HOA Management company.
When issues arise, a tactical conversation with the management company is generally helpful in implementing new practices and correcting the concerns. Still, the Association often changes management companies if a problem persists and a resolution is not met.
- Lack of Communication
Poor communication is among the most significant indicators of poor HOA management. Suppose the community management company and HOA Manager are not responding to emails, phone calls, or other requests for information. In that case, it can be very frustrating for homeowners and you as a Board member. Is your current company responsive to your inquiries and concerns? Do they keep you informed of important updates and changes?
- Limited Technology
Technology is essential to streamline processes and improve efficiency. Your HOA management company should offer a user-friendly and comprehensive online portal, such as a mobile app and web portal, to make it easy for the HOA Board and association residents to access important HOA information and pay dues. It may be time to switch if your current HOA management company isn’t invested in advancing technology.
- Poor Financial Management & Record-Keeping
An HOA management company should ensure the community’s financial health by providing accurate financial reports, responsible budgeting, and timely dues collection. If they fail to maintain clear records, make frequent accounting errors, delay vendor payments, or have unexplained expenses, it can create financial instability and erode trust with the HOA Board members and homeowners.
- Failure to Enforce Rules
If the HOA management company is not enforcing properly or selectively enforcing the rules and regulations of the HOA, it can lead to disruption and dissatisfaction among homeowners. A lack of enforcement can also lead to legal implications for the HOA. An HOA Manager should be on top of all compliance by conducting routine and fair inspections.
- Inadequate Maintenance
Suppose the HOA company is not adequately overseeing the regular maintenance of the community’s common areas, responding promptly to repair requests, or staying on top of vendor projects. In many cases, it may lead to safety hazards, delays, subpar work quality, unresolved service issues, and higher long-term costs due to neglect and inefficiencies.
- Lack of Transparency
If the management company is not transparent about its fee structure, services, or other vital information, it can build distrust. Are they open and honest about their processes and fees, or do they have hidden costs? Do they provide detailed and accurate financial reports? Pay attention to what HOA management companies charge to ensure your community is not overcharged.
- Quality of Services
If the management company is not delivering quality services to your community association, it’s time to explore other options. A professional HOA management company will provide knowledgeable and trained HOA property managers. Reputable companies will also offer free training to the HOA board.
- Excessive Homeowner Complaints
When homeowners consistently express dissatisfaction with the management company, whether due to poor communication, slow response times, or unresolved issues, it reflects a failure in service. A high volume of complaints can create tension between the Board and residents. This tension makes it harder to maintain a positive community environment.
- Overburdened Board
A management company should ease the workload of the Board, not add to it. If Board members find themselves handling tasks the management company should be managing—such as financial oversight, vendor coordination, or homeowner disputes—it signals a lack of adequate support and may warrant a change.
- Legal & Regulatory Compliance Issues
HOAs must comply with state laws, governing documents, and fair housing regulations. A management company that fails to provide proper legal guidance misses deadlines for filings, or does not stay updated on changing regulations can put the HOA at legal risk, leading to fines, lawsuits, or governance challenges.
It is important to note that these ten reasons are not in any particular order—usually, the decision to make the switch results from many failed attempts to correct poor performance. Your community management company should prioritize customer satisfaction, create an environment of transparent communication, and be active in your Association.
Your homeowners’ association deserves a management company prioritizing communication, transparency, and proactive service. Ignoring these red flags can lead to financial instability, homeowner dissatisfaction, and unnecessary stress on Board members. A well-managed, engaged, and thriving community —if your current provider isn’t delivering that, it’s time for a change.
Is it time to search for a new management company? Don’t wait until minor issues become major problems. Please schedule a consultation with AAM today to discover how our expert team can provide the support, technology, and financial oversight your community needs to succeed.