Having a reliable HOA management company is important for many reasons. Not only do they take care of several day-to-day tasks, but they ensure your HOA is compliant and your residents are happy. However, a bad HOA management company can cause several issues. From poor financial management to numerous homeowner complaints, a poorly performing HOA management company can create several challenges for the community. If this sounds like your situation, read along as we review how to change HOA management companies to find a better fit for your community.
Contents of This Article:
- Signs You Need a New HOA Management Company
- How to Change HOA Management Companies
- How to Find a New HOA Management Company
- Trust BMG With Your HOA Management Needs
Signs You Need a New HOA Management Company
If you feel as though your HOA community is being mismanaged, it probably is. Our Philadelphia property managers know that a good team should operate efficiently, transparently, and with a strong focus on the community. If you’re experiencing ongoing issues, it might be time to assess whether or not your HOA management team is meeting your expectations. Here are some of the key signs you may need a change.
- Lack of Communication- Communication can make or break a relationship–even when it comes to HOA management. If your management company doesn’t respond promptly to emails, calls, or requests, it might be time to move on.
- Inability to Complete Projects- An HOA management company should follow through on projects, from small repairs to major maintenance. If you notice projects being delayed or left incomplete without explanation, it may indicate poor planning, oversight, or a lack of resources needed to handle the workload.
- Poor Financial Management- Effective financial management is crucial for any HOA. If there are budgeting mistakes, delays in collecting dues, or incomplete reports, it may be time to reconsider.
- Hidden Fees– Unexpected charges or unclear billing practices can quickly damage trust. If you’re finding hidden fees or notice charges that were never discussed, it’s a major red flag.
- Lots of Homeowner Complaints- High levels of dissatisfaction among homeowners may indicate that the management company is not meeting community needs. Frequent complaints about poor maintenance, unresponsive management, or unresolved issues can signal an issue that needs attention.
- Poor Record-Keeping- Maintaining accurate records is essential for any HOA, and poor record-keeping can lead to missed deadlines, unorganized files, and difficulty tracking community history. If your management company can’t handle these tasks, they may not have the necessary skills.
How to Change HOA Management Companies
If you’re dealing with some of the issues listed above, it may be time to search for a new management solution. After all, the members and homeowners in your HOA deserve top-notch management services! Here are some of the first steps if you’re looking to change HOA management companies.
Review Your Current Contract- Consult Your HOA Attorney
- Provide Notice to the Current Company
- Terminate Your Contract
- Search for a New Management Company
Review Your Current Contract
Start by reading through your current contract with your HOA management company. Look for terms related to contract termination, notice periods, and any potential penalties for early cancellation. Knowing the potential consequences of terminating your contract early can help determine whether you want to cancel or wait it out. Most likely, you’ll have to pay additional fees to cancel before the contract is up.
Consult Your HOA Attorney
It’s important to have an experienced HOA attorney on your side to help guide you through the legal aspects of finding a new management company. They can help ensure that your HOA remains compliant with its governing documents and any applicable state laws during the process. They can also help review and understand legal documents related to the process.
Provide Notice to the Current Company
Once you’ve made a decision, you’ll want to provide notice to your current management company according to the necessary notice period for your contract. Remember to keep all your communication with the company in writing, including emails, so there’s a clear record of the termination process.
Terminate Your Contract
Follow the termination steps specified in your contract, making sure that all financial obligations are met and the necessary documents are signed. You should also request that the management company transfer all essential records and financial reports to your HOA or your new management team to ensure a seamless transition.
Search for a New Management Company
If you haven’t already found a new HOA management company, start searching for one. Look for companies with a strong track record, good communication, and transparent financial practices. That said, don’t go with the first company you find–interview several candidates, request references, and review their services to find the best fit for your HOA community.
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How to Find a New HOA Management Company
Finding a new HOA management company can be challenging. After all, you want to find a company within your budget that meets the needs of your community. Here are some of the steps to follow for a smooth transition.
- Assess Your Needs
- Research Local Companies
- Request Proposals
- Review Credentials and References
- Conduct Interviews
- Make a Decision and Sign the Contract
Assess Your Needs
Start by identifying what your HOA needs in a management company. Do you need someone to help with financial management? Is your maintenance lacking? Make a list of priorities and any gaps in your current management to identify what you’re looking for in a new company.
Research Local Companies
Once you know what you need, start looking for HOA management companies in your area with experience in communities similar to yours. You’ll want to read reviews, check out different websites, and ask other HOA boards for recommendations. That way, you can find a few potential candidates for the type of management you need.
Request Proposals
Once you’ve found a few prospective companies to work with, request proposals that outline their services, fees, and approach to HOA management. Additionally, ask questions about how they handle communication, vendor management, financial reporting, and other specific services you’re looking for in an HOA management company.
Conduct Interviews
Schedule interviews with companies you’re interested in to discuss your HOA’s needs and what they can do to meet them. Ask about their experience with similar HOAs and how they’ve handled specific challenges in the past, like budgeting or conflict resolution.
Review Credentials and References
To ensure you’re making the right move, check with other communities managed by the company. They can give you feedback on the company’s strengths and weaknesses so you can determine whether or not it’s a good fit. Make sure to ask questions about the company’s communication skills, reliability, and how well they handle certain issues.
Make a Decision and Sign the Contract
Sit down and review all the proposals, interviews, and feedback, comparing each company’s offerings with your HOA’s priorities. Look at factors like communication, transparency, and pricing. Choose the company that aligns best with your community’s values and goals.
Once you’ve selected a company, work with them to finalize the contract. Make sure you both are clear regarding fees, notice periods, and the services they offer to avoid any surprises later on. Review the contract thoroughly with your HOA board and attorney before signing.
Trust BMG With Your HOA Management Needs
Is it time to change HOA management companies? If your current company is inconsistent, hard to contact, or isn’t meeting your community’s needs, it’s time to move on. Start by reviewing your contract, speaking with your company, and letting them know you’re looking for management services elsewhere.
Need HOA management services in Philadelphia? Contact Bay Property Management Group! Our team of experienced professionals can help you with all your HOA management needs. From coordinating meetings to creating an annual budget, inspecting properties, working with vendors, and more–we’ve got it covered! Learn more about our comprehensive HOA management services today!
