Best Demonstrated Practices and Tips for Selecting an HOA Management Company

Tips for Interviewing Prospective Management Companies

1. If you are a brand new board, hold a strategic planning session prior to talking to the management companies.
2. As a new board, take some classes in HOA Management online or get HOA books to study.
3. Prioritize the top three service needs you have as a board, then without disclosing those to the Management Company, asks them to name their top three strengths.
4. After the Management Company states their strengths, don’t be shy about sharing exactly what your objectives are and ask for their solutions.
5. If you currently have a Management Company and you are changing to a new one, ask them to explain and show you their transition plan.
6. Be sure to ask for references of communities they are managing (3) and at least (2) communities that they have serviced but no longer hold the contract for servicing.
7. Make sure you call and speak in depth to all the references.
8. If you and your board don’t have a community club house to meet in, think about meeting in the local library or a local church.
9. Ask the Management Company if they have a Standard Operating Procedure that includes:
1. Regularly scheduled meetings with the board and the timing of those
2. Length of time between the time you place a phone call and the time it is returned (make this a reasonable length of time)
3. Length of time between when you email and have an email returned (again, make sure this is a reasonable length of time)
4. Accuracy of billing
10. Think about visiting the Management Company’s offices in person prior to your decision.
11. Make sure that you always ask for copies of reports that will be used and a sample of any important documents they will be sending to your community such as violation letters.
12. Ask the Management Company if they accept on-line payments.
13. At the Management Company how is the accounting handled? Is it in-house or outsourced?
14. How are taxes handled by the Management Company? Is that outsourced?
15. How are collections going to be handled? Have the Management Company explain their role with collections.
16. Where is the Management Company located? Are they local? Does that matter?
17. Does the Management Company insist that their account managers are in the office daily?
18. What is the typical number of homeowners that each account manager is responsible for?
19. What is the business philosophy of the Management Company? Does it fit with the objectives you have set forth?
20. What added value can this Management Company provide to you and your community?
21. Think about using a pricing matrix like the one available here on our website to make sure you are able to fairly compare the pricing you receive.

Also review Homeowners Association Management explained for a more in-depth description of the process, along with information about the transition of management responsibilities from the Board of Directors to the chosen company.