5/28/25

Why Hire a Management Company for Your HOA or Condo Association—and How to Choose the Right One

Overview:

Whether you’re transitioning from self-management or looking for a new property management company, hiring the right management partner is a pivotal decision for your HOA or condominium association. Professional management brings expertise, efficiency, and peace of mind to boards overwhelmed by administrative, financial, and operational responsibilities. Here's why you should consider hiring a management company and how to find the perfect fit.

Why Hire a Professional Management Company?

Self-managed associations often find that the responsibilities placed on board members become overwhelming. A professional management company can alleviate these burdens, ensuring that your association operates smoothly and remains compliant with all applicable laws and regulations.

Key Benefits of Professional Management:

1. Assessment Collection: Ensure assessments are consistently collected, and legal procedures are properly followed to avoid liability under fair debt collection laws.
2. Financial Expertise: Handle budgeting, bill payments, payroll, and financial reporting, removing the need for board members to have specialized accounting skills.
3. Vendor Management: Oversee contracts, construction projects, and vendor relationships with professionalism and expertise.
4. Emergency Response: Take the burden of after-hours emergencies off board members.
5. Insurance Oversight: Regularly review and rebid insurance policies to ensure adequate and cost-effective coverage.
6. Administrative Compliance: Maintain meeting minutes, resolutions, and policy documentation.
7. Reserve Planning: Prevent deferred maintenance and ensure reserves are properly funded for long-term sustainability.

Steps to Finding the Right Management Company

A. Determine Your Management Needs

Start by identifying which tasks your board can handle and which should be outsourced. Use a responsibility matrix to assign duties to either the board or the management company. Tasks commonly assigned to management companies include:

• Collecting assessments and managing delinquencies.
• Attending meetings and preparing minutes.
• Maintaining resident and tenant rosters.
• Preparing required certificates for real estate transactions.
• Acting as a liaison with the association’s insurance provider.

Once you’ve identified your needs, outline them clearly in a Request for Proposal (RFP) to share with prospective companies.

B. Identify Qualified Management Companies

Finding the right company goes beyond a quick online search. Focus on firms with proven experience in managing associations similar to yours and look for the following credentials:

• AAMC (Accredited Association Management Company) designation.
• Certified personnel, such as CMCA (Certified Manager of Community Associations) or PCAM (Professional Community Association Manager) certifications.

Where to Start:

• References: Ask other HOA or condo boards for recommendations.
• Industry Organizations: Seek companies active in the community association industry.

Narrow your list to five or six potential companies, then contact them to gauge their interest and suitability. Aim for at least three companies to submit bids.

C. Evaluate Proposals and Finalize the Contract

Choosing a management company isn’t just about price—expertise, reliability, and a strong understanding of community associations are critical factors. Once you’ve selected a firm, ensure the management contract clearly outlines:

1. Roles and Responsibilities: Define tasks handled by the management company versus the board.
2. Communication Requirements: Specify how the management company will interact with the board and residents.
3. Fees and Payment Terms: Detail compensation, including any additional fees for specific services.
4. Length of Term: Set a clear duration for the agreement and renewal terms.
5. Termination Clauses: Include provisions for ending the agreement and requiring the prompt return of all association records.

Key Takeaways

A professional management company can transform your association’s operations, but finding the right partner requires careful planning and due diligence. By clearly defining your needs, seeking recommendations, and thoroughly vetting candidates, your board can hire a management company that brings value, expertise, and peace of mind.