Changing HOA management companies can be a simple process. With careful planning and consideration, you can ensure a smooth transition that benefits your community. Here are the key steps to successfully changing your HOA management company.

1. Define Service and Attention Expectations

Start by summarizing your current service and attention expectations. Identify areas of improvement and pain points you’ve experienced with the current management company. Gather detailed information about your association, including:

Association Name

Number of Units

List of Amenities (e.g., pool, gym, clubhouse, etc.)

Additional Services (e.g., 24/7 security, parking enforcement)

Having this information ready will help you articulate your needs and expectations clearly when discussing them with potential management companies.

2. Request Sealed Proposals

To reassure the membership that you’re making an informed decision, request sealed proposals from three different HOA management companies. You may ask these companies to present their scopes without pricing in a workshop setting where you can openly discuss your needs. Be honest about what you’re looking for in a management company to ensure you get accurate pricing.

3. Prepare for the Next Meeting

Request to have the topic of management and the notice to terminate the current management contract placed on the agenda for your next HOA meeting. Ensure that all companies provide a detailed scope without pricing for review before the meeting.

4. Open and Review Sealed Bids

During the meeting, open the sealed bids and review them, focusing primarily on pricing since you’ve already reviewed the scopes.

Regina's Tip: Management companies offer low management fees and make up their revenue through hidden fees. Scrutinize and compare the addendums attached to the contracts more thoroughly than the management fee itself.

5. Make a Selection

After reviewing the bids, motion to approve the chosen management company, specifying the monthly amount. If the new management fee is higher, justify the increase by highlighting any added services, improvements, or offsetting fees that the new company will provide. If the board approves the management change, make a motion to provide notice to the current management company in accordance with the management agreement that is being terminated. Notice requirements are typically 30-60 days.

6. Initiate the Transition

During the 30-60 day period, the outgoing management company must provide all necessary records and files to the new management company. This will include startup funds to open the bank account, homeowner account information, association documents such as Bylaws and CC&Rs, and all other community files.

Regina's Tip: Ask to meet the manager who will be assigned to your community to ensure they are a good fit. Remember, the person presenting the proposal is often not the one who will manage your community day-to-day. Transitioning to a new management company typically takes up to 90 days for the new company to fully set up the community. Therefore, expect the entire process to take approximately 4-5 months from start to finish.

Conclusion

Changing your HOA management company requires careful planning to ensure a seamless process. By following these steps and being diligent in your review process, you can ensure a smooth transition that meets the needs of your community and sets the stage for improved management and services.

For more expert advice and assistance with your HOA management needs, feel free to reach out to us at Allied Association Advisors LLC.