QUESTION: We are starting the process of finding a new property management company. Do we need a homeowner vote to approve a change in property management or simply a vote or the board members?

ANSWER: First of all, changing property management companies should only be done with extreme care. Is the issue one of personality that can be addressed by change of manager and not company? Has the property manager been notified in writing of specific grievances or breaches of agreement and been given a reasonable chance to correct them. I say this because it is common for boards to expect a management company to handle everything for a basic management fee. This is not possible nor realistic.

While most managers want to do a good job, the job is enormous to begin with. Adding more work will dilute the quality of service. So, some questions to ask yourselves: Is the board requesting service that it is not paying for? Has the manager been given a fair chance to respond to complaints?

No management company is perfect. Going to a new company will mean a whole new learning curve and potentially not doing any better (maybe worse) than the first. Just make sure that if you are making a move, there is no other way. If you do, make sure to carefully check the credentials of the new company. There are few companies that specialize in this kind of management. Consider only those that do.

There may be a requirement in the governing documents for the homeowner association to approve major contracts, like hiring a management company.  Usually the Board has the power to hire and fire the management company. However, since it is a major event, I recommend polling the owners before making a final decision. 

For more on this subject, see www.regenesis.net.

Published: June 14, 2000

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .