Choosing the right partner protects the cherished lifestyles of residents, preserves community investments, and enhances long-term property values.
When an HOA board chooses a management company, it enters into a relationship with a long-term partner that should provide invaluable guidance. The right management company will help your board set up operational policies, plan for future financial needs, and develop a positive sense of community that will continue to attract new residents.
Choosing the right partner protects the cherished lifestyles of residents, preserves community investments, and enhances long-term property values. With so much at stake, it pays to have a comprehensive plan for evaluating the management companies in consideration. Here are the three primary elements to consider:
Stability and Professionalism
The trustworthiness of a management company is directly related to its years in business and the training and professionalism of its staff. Look for an accredited management company to ensure that their employees will have the integrity, skills, and experience to meet your community’s needs. The AAMC accreditation demonstrates a company’s commitment to providing the unique and diverse services community associations need.
To further compare stability and professionalism, ask questions of each of the management companies in your consideration such as:
- What is tenure of your managers in the industry and with your company?
- What is the tenure of your leadership in the industry and with your company?
- Does your company have long standing accounts? Can you provide references?
- Does your company adhere to Generally Accepted Accounting Principles (GAAP), as recommended by the American Institute of Certified Public Accountants (AICPA)?
Focus, People, and Philosophy
The business of community management is intensely people-focused, making it essential that the management company you choose is compatible with your board’s priorities and values. In Texas, one of the first indications of a commitment to customers and the industry is involvement with the Texas Community Association Advocates (TCAA), the public policy voice of community associations and the board members who serve them.
Another measure of a management company’s focus on association management is whether they own other businesses. In this industry, there are quite a few companies who have diversified investments, and some of these may present conflicts of interest.
In order to properly serve your community, a management company has to be staffed accordingly. Compare the number of associations each manager (within each management company) is responsible for, and what staff support they have to serve your needs. The team and supervision should be local, available to meet in person, and highly responsive to any inquiries.
This area continues to grow in importance, so pick a management company that shows a commitment to staying ahead of the technology curve. This includes offering an integrated system that allows homeowners access at their convenience while protecting from cybersecurity threats. It should enable homeowners to make requests, submit forms, review violations, and submit HOA payments online.
Board members will also want 24/7 access and visibility into financials, architectural controls, work orders, and homeowner violations. This information should be up-to-the-minute, and the software should preferably be SaaS (cloud-based) so that it can be updated as new enhancements and features become available.
If you have already begun the selection process, it’s likely you have noticed the diversity in pricing structures among management companies. Compare the value proposition of each company by considering the level of service being offered. Talk to your vendors, nearby neighborhoods, title companies, and realtors to see if they confirm these value propositions and if they recommend a management company.
Finally, visit the offices and meet their employees. This decision is ultimately about choosing the right partnership for your community.
Business Development Manager for CMA
Phone: 972-943-2848 | Email: email@example.com