When Does Our Self Managed Homeowners Association Need a Management Partner? 6 Questions Your Board Should Ask

Even the most successful HOAs and condo communities can’t do it all. But how do you determine the type of support you need, and when you should hire a management company? An excellent place to start is by assessing your association’s needs to help you make the right decision. Read on for 6 questions you should ask before choosing a management partner.

1. HOW IS OUR BOARD’S TIME BEING SPENT?

   Does your board manage day-to-day tasks, oversee vendors, take calls and handle routine (or surprise) maintenance projects? This may not be the most effective use of your time. Successful and thriving boards are not burdened by day-to-day tasks; instead, they invest their time developing a solid vision and effective policies that propel the community forward.
    

   WHEN TO CONSIDER A MANAGEMENT PARTNER:

   A professional management partner can help boards use their time most effectively by providing full-time associates that help manage day-to-day tasks, including your association manager, assistant manager and support team, to deliver responsive service to both the board and your residents. They also provide access to a host of local and national resources and staff that can help make your job easier, including financial professionals, executive leadership and human resources. This allows you to operate as a “policy board” and spend your time making decisions that can profoundly impact the association for years to come.
   
   "Working with a professional management company can be an invaluable asset to boards," said Chris Hevia, vice president at FirstService Residential. "With support, resources and access to qualified staff, boards can focus their energy and time on the community's bigger picture."
    

2. WHAT LEVEL OF SERVICE DOES OUR COMMUNITY OR BUILDING NEED?

   In a self-managed association, board members often handle many critical responsibilities, from finding and vetting vendors to setting up a community website and managing reserve fund investments. However, spending time on less-critical tasks can take away time that these more-critical responsibilities require. If your board has the experience, knowledge and time to fulfill your duties and maintain a high level of service, property values will remain strong, and the association will thrive.
    

   WHEN TO CONSIDER A MANAGEMENT PARTNER:

   If you are looking to maximize your resident experience and elevate your association’s reputation (which can have a significant impact on property values), you may want to consider partnering with a management company. This level of service and responsiveness requires 24/7 attention, knowledge and experience. It also requires action from a team of specialists, including operations, maintenance, finance, collections, legal, lifestyle and customer service.
   
   Read this helpful article to learn how a property management partner can support condo and community association boards.
   
   DO WE HAVE THE SUPPORT NEEDED TO SET A VISION AND ACHIEVE OUR GOALS?
   
   Many association boards understand the importance of setting a vision and planning ahead, which helps establish and strengthen your association now and in the future. If you have the resources and support needed to develop your vision, evaluate your plan and accomplish your association goals (even when new board members have joined), you’ll be set.
   
   The “rudder that steers the ship”
   Why create an association vision? Watch this short video to learn why it’s important for your board, your budget and your future.
   
   
   
    

   WHEN TO CONSIDER A MANAGEMENT PARTNER:

   Developing your vision and strategic plan often requires outside guidance and various perspectives and best practices from like-minded communities. The best management companies will have the resources and an in-depth network of support (including finance, operations, technology, staffing, training, developing and managing employee-related claims) to help you establish and execute your plan. Most importantly, they will work closely with your board to ensure that your community is run according to your association’s goals and objectives.
    

4. ARE WE EQUIPPED TO HANDLE A MAJOR EMERGENCY?

   Well-run associations have the tools, resources and plans to stay strong when a major emergency occurs. Along with a comprehensive emergency plan and communications, they are also financially prepared for unexpected costs associated with a crisis or natural disaster.
    

   WHEN TO CONSIDER A MANAGEMENT PARTNER:

   For self-managed properties, one major event can severely strain the budget or put the community at risk. In these cases, it’s important to have a management company that can not only execute your emergency plan but provide guidance in the moment. A management partner can help communities and buildings develop detailed and thorough emergency plans, and use technologies to distribute on-demand communications (e.g., email, text, auto-dialers, etc.).
   
   "At a time when the unexpected can happen at any moment, it’s essential for communities and buildings to be prepared,” said Andy Sorenson, vice president at FirstService Residential. “The right property management company has the expertise and technology necessary to build and support a robust emergency plan tailored to a community’s individual needs."
   
   Hurricane and storm preparation
   From sourcing supplies to lining up recovery providers and developing detailed communication plans, FirstService Residential equips boards with the tools and resources needed to properly prepare for storms. Watch this video to learn how to prepare your residents and property before, during and after a storm.
   
   
    

5. IS OUR ASSOCIATION TAKING THE RIGHT STEPS TO REDUCE LEGAL RISK?

   To help protect your association from liability and risk, your board should work with legal counsel to understand federal, state and local laws and ensure compliance, as well as a management partner to engage in lawful employee processes (e.g., recruitment and benefits). Does your board know how to incorporate properly? Did you know your vendors are required to sign a W-9 tax form and that you must issue them all 1099s? Do you carry D&O (Directors and Officers) insurance?
    

   WHEN TO CONSIDER A MANAGEMENT PARTNER:

   Partnering with a management company can help reduce risk in many areas. If board members make critical errors or omissions, individual property values may suffer, and board members may even face personal liability. The most effective management companies have access to in-house legal and risk experts who educate managers and board members on the latest legislation that may impact their association. The right partner will also support recruiting, hiring and training staff, making sure to comply with all necessary laws.
   
   Did you know?
   FirstService Residential provides regular legislative alerts to boards, including the most up-to-date information on changes in legislation as they occur. Visit the legislative updates page on our website to get an overview of the latest laws that impact condo and community associations.
    

6. ARE WE MAXIMIZING OUR BUDGET AND FINANCIALS?

   As a board, you know how important it is to maximize your reserves and operating funds and make wise and timely financial decisions. Some associations rely on outside vendors or committees, while others depend on internal knowledge and expertise on the board itself. These methods are certainly valid, but there are other aspects to consider if you want to obtain the most value for your community or building.

WHEN TO CONSIDER A MANAGEMENT PARTNER:

Many associations desire more in-depth financial guidance, protection and value from a management company. A full-service management company can provide dedicated accounting support, insurance services, investment guidance and budget planning specific to your association. For instance, FirstService Financial works exclusively with FirstService Residential’s managed communities to provide dedicated financial services, including cash management, investment solutions, loans and insurance services.
 

IS A PROPERTY MANAGEMENT PARTNER RIGHT FOR OUR ASSOCIATION?

As a self-managed association, the decision to partner with a management company is not one to take lightly. However, by evaluating your community’s needs, determining the level of service residents require and understanding the risks and benefits, you will be able to make a long-term and fulfilling decision.