Choosing the right property management company is a big responsibility. Per contractural agreements, property management companies agree to perform a set of responsibilities that manage and maintain the property. When the Board of Directors is faced with the task of selecting a new company, there are many questions that you need to consider:
- Will the property management company be able to create the most of the community’s assets & investments?
- Will they serve unit owners satisfactorily?
- Are their fees reasonable?
- Should the HOA do a background check?
Before you sign the dotted line, prepare the following list of questions when interviewing a property management company.
Is your property management company experienced with HOA matters?
Many property management companies offer niche services. Some may specialize in large communities or HOA’s with riparian (river-bank) rights. Certain property management companies may have been in business for many years, but never really dabbled in managing HOA communities.
Property management companies who only manage rental properties should not be considered ‘experienced’ regarding HOA issues; mainly because the objectives of rental properties significantly differ from those in a Homeowner’s Association. HOA-experienced property management companies possess the skills to diffuse disagreements and mediate the conflict. Anyone who has attended a Homeowner’s Association board meeting that spins out of control is quite familiar with just how critical it is for the property manager to possess these skills.
Hiring the right property management company is, if you pay attention, a great opportunity to initiate changes that just might improve the property’s value.
What services does your property management company offer?
This is considered the most pertinent question you can ask a property management company during the interview stage. Stories circulate regularly about the massive amounts of time and effort required to manage a Homeowner’s Association and most board members agree that it could easily be considered a full-time job.
Hiring the right property management company can reduce the burden on the board of directors. However, it is imperative that the board of directors, prior to making any final decision, know exactly which services will be provided. Each Homeowner’s Association has a specific combination of needs. 21st Century property management companies can personally modify the service contract to reflect any HOA’s exact needs.
How will your company maintain our community?
The most important service (and the most visible service) is quality maintenance. A lack of property upkeep is one of the biggest concerns among the Board of Directors. It is important for maintenance to be handled as seamlessly as possible. When inquiring about community maintenance service, your board should ask:
- What exactly will be maintained?
- What are the HOA’s maintenance responsibilities?
- How are maintenance requests managed? What are turnaround times?
- Can you explain how the channels of communication will work?
What is your fee structure?
Not every contract offers the same services and so prices vary widely. It is critical to know how the property management company’s fees are structured. The property management contract should be crystal clear regarding the services to be provided for the quoted fee. Always be sure to read the fine print.
Can you provide references?
Seasoned property management companies should have references that are available upon request. Ask for these in advanced as you consider your property management options.
The Takeaway
When selecting a property management company, make sure you do the necessary research. Confirm their service abilities with previous customers.
About Diversified Association Management
Diversified Association Management (DAM) is best in class for HOA management. Since 1984, DAM’s principles have provided common interest development management services for condominiums, planned unit developments, industrial associations, master associations and maintenance associations. We serve communities in Orange County, Los Angeles County, and the Inland Empire. To learn more about our services, please call us at (714) 544-7755 or email us at info@diversifiedassociationmgmt.com.
