Your property management company is the custodian of your development. It is the job of your managing agent to handle your HOA's finances, keep track of contractors and vendors, and pay bills. But what happens if the company you hired to do this important work turns out to be a dud?
A board might find they have a number of reasons to consider changing management companies, or even just a particular agent within a company: fraud, financial mismanagement, substandard attention, resident concerns, negligence, or just simple personality conflicts. When the time comes to change companies, boards have a lot of variables to consider—but above all, they should realize that who runs their building is ultimately their decision.
Reasons to Switch
There comes a time for many boards when they decide that their management company is not working out. But why?
"The most common reasons are lack of service, mismanagement of funds, a change of directors, or just financial reasons," says Robin L. Habacht, president of Monticello Management, Inc., in Leonia. "They may just be looking for a better deal."
Habacht goes on to maintain that many associations don't switch management companies when they should. They may be unhappy with the way the company is handling their property, but they are afraid of change.