Evaluating Property Management Companies: A Comprehensive Guide

In any homeowners association, the board members play a crucial role in safeguarding the interests of the community. Selecting the right property management company is a significant decision that can shape the property’s future over many years. A thorough comparison of management companies is essential to ensure they align with your community's needs. Being proactive in this process indicates an understanding of the value an expert management team can bring.

Teaming up with a property management company can lead to various benefits such as:

- Enhanced property values

- Access to services that might not otherwise be available

- Assistance in creating practical and workable budgets

- Minimization of potential risks facing the association

- Improved living standards for residents

The real challenge lies in choosing the right company from a plethora of options. It's vital to evaluate each company's ability to deliver the expected services and value. To aid in this selection process, here are eight crucial questions to consider.

1. What services will be included

A comprehensive property management company should efficiently handle everyday operations, accounting, maintenance, and communication with residents. They should also assist with strategic planning and provide additional services like staffing, training, and engineering. Understanding the full list of services included is critical before signing any contract.

2. How will you help us better manage our money

A company with strong expertise in budgeting and financial management is invaluable. Check if they offer training programs for board members to enhance financial acumen. Assess whether their buying power might provide cost savings on essentials, or if partnerships offer favorable insurance rates, competitive loan interest, and investment yields, maximizing your association's financial resources.

3. Do you have the resources to adequately support our community

An effective management company must have the resources to respond promptly to community needs while offering specialized expertise. This capability is evidenced through:

- Strong leadership

- A collaborative approach to property management

- The presence of in-house professionals in legal, accounting, IT, and HR

- Robust processes to safeguard finances and data

4. What kind of training do your associates receive

Certification for property managers varies by location, but a company should encourage staff to achieve professional certifications, such as those from the Community Associations Institute (CAI) and the Institute of Real Estate Management (IREM). Ongoing educational opportunities are crucial, as the property management field constantly evolves. The availability of training programs for board members also indicates the company's commitment to supporting the leadership team.

5. How will you deliver customer service

A reliable customer service center must be available for information, inquiries, and urgent issues. Additionally, ensure that:

- Regular proactive communication is provided

- A management team member attends association board meetings

- Financial reports and statements are consistently presented to the board

6. Do you offer a web-based platform to connect residents, board members and our property management team

An online platform that fosters seamless communication among residents, board members, and the management team is essential. Request a demonstration to ensure it is user-friendly and facilitates 24/7 access to community management tasks from any device.

7. What safeguards do you have to protect our association

Financial responsibility separation and robust internal controls are essential for protecting the association and homeowners' confidential information. Assess the company's transparency and accountability. Publicly traded companies undergo rigorous third-party audits annually, enhancing community security.

8. What can you offer to help us be more competitive

Management companies serving similar communities often gather extensive data. Inquire if the company can provide benchmarking data, enabling your community to evaluate its position relative to others. This information can guide decisions about improvements to maintain competitiveness in a dynamic real estate market.

These questions will help ensure a consistent evaluation process, enabling you to compare different property management companies effectively.