Switching management companies for your community association may sound like a rather daunting task, and, in many ways, it can be. Though you may not be satisfied with your current management partner, making changes can be difficult. Selecting a new company will involve carefully reviewing your current management contract, researching new management companies, requesting proposals, and deciding who you'd like to bring on to manage your community. Any reputable professional management company will have an onboarding process in place that will allow your board to be relatively hands-off during the transition once you've signed your new contract. Keep reading for reasons you may be considering a change and some tips on beginning the process.
Before diving into some best practices for transitioning to a new management company, let's discuss why your board may consider a new management partner.
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Another issue might be that the only way to contact them is by phone. Though being able to chat with someone on the phone is still very much necessary, most people like to have the option to send a quick email. Suppose your current management company doesn't have an online portal that allows you to send messages to your community manager, submit maintenance requests, and keep track of communication. In that case, it may be time to partner with a more modern company.
One of the primary responsibilities of a professional management company is assisting the board in keeping up with the association's financials. And the company must provide 100% transparency to the board when handling their accounts. Does your current management company regularly provide you with financial reports? Do you know when to expect those each month, or do they show up randomly? Do board members have 24/7 access to the community's financial information? If you've answered no to those questions, you may want to consider looking for a new management partner (and may also want to take a hard look at your finances to ensure everything is as it should be).
As we said earlier, online portals and other electronic communication means are vital for operating a business efficiently, but it goes further than that. For example, does your management company provide convenient ways to pay your assessments online? Are you able to submit ARC requests electronically? Are they able to meet with you via Zoom or other similar platforms? As we all learned during the Covid-19 pandemic, the ability to conduct business and other day-to-day activities online is crucial and, sometimes, necessary.
So you've decided to start looking for a new management company, but what do you do next? Here are a few tips on getting the process started.
When considering switching management companies, the first step you should take is to review your current contract. Does it expire soon? If so, then you need to send your cancellation notice. Most contracts have a deadline by which you have to submit your cancellation (perhaps 30, 60, or 90 days before it expires), so be sure you take care of that promptly.
Are you in the middle of your contract and seeking to terminate it? Unfortunately, that can make things more difficult as each company's contracts will have different requirements for cancellation. For example, some may require termination fees or have other stipulations surrounding early termination. As a result, early termination can get complicated, so the best thing your board can do in this instance is to consult your association's attorney to help you explore your options.
Once you've figured out when and how to terminate, you'll need to research some other management companies and decide which ones may be a good fit for your community. Fortunately, you can do this pretty quickly online. Any reputable management company will have reviews left by current and previous clients that should give you insight into how the company operates and what others have experienced under their management. You may also want to talk to some friends who live in communities managed by the companies you're vetting for feedback.
If you've decided on a few companies you'd like to learn more about, the next step is making contact and
Proposals will differ for each community as pricing can vary depending on the size, location, and type of community. The proposal will also give you some insight into what services the new company can provide and give you a chance to think about your community's needs and budget.
So, what information will you need to provide the potential new company to get the ball rolling? They'll typically want to know:
If you've narrowed down your list and are ready to meet with representatives from the potential new management company, it'll be your turn to ask some questions as they present you with an overview of their services. But what kinds of questions should you ask? Here are a few that will give you a better idea of how the company operates and if they'll be a good fit for you:
If you've decided on a new management company, it's time to get the transition started! As you may assume, the new company will need some information from you and your previous management company to set you up in their system. Remember that cooperation from your outgoing management company is essential at the onset of the transition. They have a great deal of information that the new management company will need to begin onboarding.
Another thing your board will need to do is provide the incoming management company with information on collections policies, processes surrounding inspections, violations, and enforcement. And, if your community has any particular circumstances, issues, etc., you feel the new company should be aware of, it's good to mention them early on.
Though the incoming management company will be able to obtain most of this information from the outgoing management company, there may be times when they need your assistance in encouraging the old company to provide these documents.
It sounds like the new management company has it all under control, right? Well, yes, they do, but that doesn't mean the board is entirely hands-off in the process.
Depending on your community, board members may need to take responsibility for notifying members of the management change. As we all know, some people don't like change, so for them, it may be better to hear from someone they know vs. getting an email from a stranger.
Other than making sure the board is available to answer any questions the new company has during the onboarding process, you should be able to sit back and let them handle the transition. And, if they're experts in transitioning and onboarding, your members should notice a minimal disruption in how they do business with the association.
At CAMS, we have a proven onboarding process and a dedicated onboarding team to begin working on
And the best part? Our onboarding and business development teams will keep you updated every step of the way until the transition is completed and your account is ready to be passed along to your new community manager. Sounds pretty easy, right?
Are you considering transferring to a new management company? If so, you can learn more about some of the fantastic services CAMS offers and reach out to us here or call us at 888.798.2624.