The purpose of an HOA management company is to relieve the board of tedious administrative tasks and maximize the efficiency of the association. Like many partnerships, the relationship between a management company and an HOA can deteriorate, even after a strong start. This may prompt an HOA to begin planning how to change HOA management companies.
It might be time for a change if you’re experiencing the following problems with your HOA management company:
- There is a breakdown of essential communication
- Unfinished projects are growing in number
- A high rate of management turnover causes disorder and confusion
While the switch may seem like a big undertaking, specific steps can streamline the process. We have prepared a guide on how to change HOA management companies to support you during the process.
(You can also learn more about how HOAs can transition from self-managed to property management. Or, learn more about how to make the HOA developer transition.)
Review the Management Company Contract
As you prepare to change your HOA management company, any transition requires familiarity with your contract so that you don’t take any legal missteps. Consult a lawyer, and review your contract for clauses pertaining to the transition.
For example, look for contractual conditions surrounding:
- Notice that must be given before transition
- Fines that apply for the complete termination of the contract
- Dissolution processes defined by the CC&R
Another important step to remember is to restrict your current HOA management company’s access to important documents, financial information, and accounts when the time comes. Passwords may need to be updated and certain user permissions removed.
Define What the HOA is Looking For in Its Next Management Company
After determining that a transition to a new management company is both warranted and legal, it’s time to decide what services and features are essential. For example, you may need a management company that offers a la carte services or different tiers.
A good place to start is understanding your goals around HOA management. Some questions to consider when determining your needs might be:
- Do we want to decrease our monthly/yearly spend, or can we afford to have the management company take on more responsibilities?
- Do we need better, more frequent communication with the management company?
- Do we want the company to manage vendor relations?
- Do we want the management company to handle association financials?
Establishing your overall needs and future goals will help set the parameters for HOA management companies to make bids.
Establish a Search Committee
Hiring a new company can be a job in itself, which is why you should consider establishing a search committee. A search committee is a group of two or more people tasked with interviewing and evaluating HOA management companies.
Consider assembling a diverse group so that you make sure to cover each area of the HOA. For example, choosing your treasurer and secretary to serve on the search committee ensures that they will focus on both bookkeeping and homeowner communication during the search.
Establishing a search committee should be done before your current management company is phased out. This is an important component when it comes to how to change HOA management companies. The process of transitioning a new company in can be lengthy, requiring many interviews, process reviews, and board meetings to make determinations.
Share the News with Homeowners
During a time of transition, it’s crucial to maintain clear communication across the board. With full transparency, you are able to keep everyone on the same page and build trust in your community. That’s why when legal requirements are satisfied and a new management company is selected, it’s time to inform everyone of the transition, including homeowners, vendors and HOA personnel.
Much like how a search committee can streamline the process of finding a new management company, a mailing service can streamline the communication process. That’s where companies like Page Per Page come in.
Page Per Page specializes in homeowner associations, using professional designs across print and digital mediums to communicate your message. Their quick turnaround and high-quality print and digital mailings makes them an essential partner during the HOA transition process.
Another common reason that many HOAs look for a new management company is seeing a pattern of violation notices and letters being sent to the wrong households. Management companies are often swamped with managing other HOA details, making it a smart decision for the HOA and management company alike to outsource their mailings to a professional provider, like Page Per Page.
Make Homeowner Communication Easy with Page Per Page
Even if you have ample information on how to change HOA management companies, switching management companies requires a lot of bandwidth from the entire board. It’s important to keep your homeowners updated and informed about each step in the process for their comfort and to establish trust in your leadership.
Leaning on Page Per Page can make the labor-intensive process of keeping everyone informed during the transition a breeze. Their experience with HOA and community associations, coupled with their expertise in print and design, allows busy HOA boards to streamline the communication process.
As you venture into the unknown with a brand new management company, let Page Per Page put your mind at ease with their trustworthy, reliable mailing services that will help build a stronger connection with your homeowners.