How to Switch HOA Management Companies
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You love where you live, and you want to keep your home beautiful and safe. That’s why you established a homeowner’s association (HOA) with your like-minded neighbors. What do you do, however, when you’re HOA management company isn’t up to the task?
You could file a complaint, but do you really want to remain at odds with the company that’s in charge of holding your neighborhood together. A better alternative is to switch HOA management companies.
However, you’re now left wondering, “How do I find HOA management companies near me.” Read on to find out how.
When It’s Time to Switch HOA Management Companies
Many groups that want to switch homeowners association management companies have encountered the same problems. For instance, poor communication can weaken the relationship between HOA members and the management company. When an HOA management company fails to return calls or takes too long to reply to emails, relations can deteriorate quickly.
What was your experience the last time you left a message for the community manager? Did they take days to respond? Did they respond at all?
You shouldn’t need to wait to hear back from your community manager. The idea is for them to make your life easier, not make it more difficult.
With any homeowner’s association, communication is critical. A quality HOA management company will always maintain a two-way conversation with their clients.
Another problematic scenario is when HOA community managers fail to finish projects or complete work requests.
For example, you may have asked your HOA manager to see to replacing an exterior light. As you wait, you must worry about safety when you enter your home at night.
Alternatively, an HOA member may have a plumbing problem. Depending on the structure, a repair delay can cause extensive damage not only to that unit, but also to other units.
When dealing with this kind of scenario, board members may feel like they’re in HOA management limbo as they try to settle seemly simple problems. This sentiment can drive anyone to want to switch HOA management companies. However, you can’t just fire your HOA management company as you usually would with a property manager.
Dismissing Your HOA Management Company
If you’ve reached the end of your resolve, it’s time to take action. Begin by reviewing the contract between your association and the HOA management company.
The contract contains important information regarding the agreement between the homeowners and the management company. This information includes how to end the contract.
Many HOA management company agreements include a provision for yearly renewal or contract expiration. If so, this is an opportunity to make switching management companies easy. It’s a great time to consider whether you want to continue doing business with that management company.
Hopefully, you are nearing this evaluation period. Terminating the HOA management company would prove as simple as not renewing the contract.
Points to Ponder When Searching for an HOA Management Company
If you’re nearing the renewal period, however, you’ll need to review the contract to start exploring other options. First, you’ll need to figure out the duration of the existing contract.
Also, you’ll need to see if the contract renews automatically. If it does, you’ll need to figure out the terms.
Furthermore, you must find out what the stipulations are regarding terminating your relationship with the management company. For example, you may need to give 30-, 60- or 90-days’ notice.
Also, you need to find out if there are penalties involved in breaking the contract early. For example, will the homeowners association need to pay the balance of the management fees to exit from the deal?
Review the agreement carefully. You must know every detail about the contract before you begin the process of terminating your homeowners association management company.
Finally, err on the side of caution. If you’re going to proceed with the termination, consult your HOA attorney beforehand.
Choose a Management Company That Cares as Much as You Do
An exceptional HOA management company wants to keep the community good-looking and safe for homeowners and board members.
Also, they have good relationships with local vendors, such as plumbers, electricians, and landscapers. Furthermore, the things that they want to protect align with your beliefs.
An exceptional homeowners association management company is amicable. When problems arise, they work to defuse situations rather than escalate them.
A professional HOA management company knows how to appease homeowners and board members. They help homeowners and board members understand that management is about collaboration.
Great HOA property management companies work to build rapport and goodwill. They’re always available to answer questions and provide solutions.
Also, exceptional HOA management professionals are highly knowledgeable. They know local laws and have experience conducting business in your community.
Most importantly, a great HOA management company is available around the clock. A problem can arise at any time. You need to know that your management company is available whenever you need them.
The Smart Way to End Things With Your HOA Management
Once you’ve found a good HOA management company, it’s time to approach the task of parting ways with your existing service provider. Keep the engagement positive and professional.
You may want to offer them one last chance to improve their performance. To do this, you can write a letter stating that the company will need to improve its performance or face termination. You can go on to inform the company that you will not renew the contract if the HOA management company doesn’t make improvements.
In some cases, the relationship between the homeowners and the HOA management company may have waned beyond repair. In this instance, it’s time to follow the procedures outlined in the contract to terminate the business relationship.
Once you’ve terminated the relationship with the management company, they’re required to return the association records. Ideally, they will also contact any vendors and inform them that they no longer represent your organization.
However, don’t count on this. If you had to terminate the company for poor performance, it’s unlikely that they’ll follow-through at this stage.
Don’t forget to review the financial relationship that you had with your former HOA management company. You may also need to change the banking information for your homeowners association.
Just because you had a bad experience with a management company doesn’t mean that you must assume the burden of HOA oversight. However, it’s essential to remain expert vigilant in vetting your next HOA management candidate.
Remember, there are people behind HOA management companies. What you need are professionals that you can trust to run your homeowners association.
Getting Ready for the Transition
As you perform your search for a new HOA management company, you’ll intrinsically want to make the process as painless as possible. For example, you may think it’s a better idea not to inform the existing company that you’re prepared to terminate your business arrangement.
This belief makes sense, as you may feel that the problems you have now will only get worse once you inform the company that you’re parting ways. However, avoiding the issue will only help to a limited extent. It’s better to deal with the problem head-on.
Your HOA management company is already underperforming. There’s no need for you to worry that things will get worse. At a minimum, informing the management company ahead of time may make the process go a little bit smoother.
Now, you must deal with finding a new management company. Begin by asking for referrals.
For example, find an HOA-managed building or neighborhood similar to your own. Hopefully, you’ll know someone from the area. If so, ask that person about their experience with their HOA management company.
Also, ask friends and family members who live in HOA-properties about their management company. It’s a lot of work, but a few days of work are well worth years of exemplary performance from your new HOA management company.
Getting Back to the Good Life
After all your hard work, you’ve switched HOA management companies. You’ve found a new HOA management company that will help your community meet its financial needs, maintain order and make decisions. More importantly, you’ve found a management company that will treat your home as they would their own.
Verraterra Real Estate Services has helped to build communities and serve homeowners for over a decade. We will help to improve the value of your property and your quality of life. Contact us today to start experiencing the benefits of an HOA management company that’s relentless in fulfilling the needs of your community.
