Hiring an HOA management company can add much value to a community and save board members a lot of time. In making a commitment to work with a specific company, it is important to know what to look for in the contracts they are offering.
HOA Management Services
In any basic contract, the provider will lay out what services they are willing to provide and what the recipient should expect to pay for them. Although the services can vary according to your community’s size and needs, it is reasonable to expect that an HOA management company will offer services such as:
- Community maintenance;
- Contracting vendors;
- Financial management;
- Administrative services;
- Acting as an impartial third party;
- Insurance guidance; and
- General industry experience.
Whatever services you decide are necessary for your community, the contract you sign should also layout how often payment is due (monthly, annually, etc.) and consequences should either party fail to uphold their end of the arrangement. You want to make sure that your association has options in the event that you are unsatisfied with the company you hire.
Also, consider the length of this contract. When does the contract begin and end? Will it renew automatically? Make sure to check the termination policy should you need to end the contract earlier than expected.
Along with this, note the terms of liability included in the contract. Who is responsible if your manager hires a vendor who does damage while performing maintenance? Both parties will want to protect themselves in case of any incident, so be aware of what those terms entail for you.
Lastly, make sure that the company you choose has the right fit for your association. Decide if you would benefit more from a manager who takes care of business from his or her office, or one who is able to be in person in your community.
Overall, read the contract carefully and be willing to negotiate with the management company, either at the beginning of your agreement or before the renewal of your contract.
With the proper due diligence on the front end, you can save yourself a lot of time by working with a management company that shares your same values and has the experience you need to make the right decisions for your community.