Master Association Management: One Company or Several?
Living in a master-planned community means becoming a member of its master association, which takes charge of maintaining the common areas like community roads, entrances, and amenities. As a resident, you are expected to pay dues and comply with the governing documents, articles, bylaws, and CC&Rs (Covenants, Conditions & Restrictions) set by the master association.
Master-planned communities are large developments that encompass a variety of neighborhoods, subdivisions, and recreational facilities. They cover a range of residential options tailored to different life stages and budgets, offering choices from single-family homes to townhomes, condominiums, and apartments. Usually, these homes are built within distinguished neighborhoods, often by various builders.
Master and Sub-Associations
To ensure cohesive aesthetics and upkeep, master-planned communities often have a master association managing the common areas. However, within these communities, several sub-associations may exist, each with unique dues, policies, and governing documents crafted by developers. Owning a home in one of these sub-associations requires paying additional dues to maintain common areas and amenities specific to that neighborhood. Residents must adhere to the CC&Rs, architectural guidelines, and other rules of both the sub-association and the master association.
The Appeal and Challenge of Multiple Management Companies
Choosing an association management company is no small feat. Each master association and its corresponding sub-associations have distinct boards of directors responsible for deciding on professional management and selecting suitable property management firms. Hence, it's not uncommon for distinct management companies to serve different associations within a single master-planned community.
In certain cases, having separate management companies proves advantageous, especially when particular expertise is required. However, this arrangement can also lead to confusion among homeowners regarding maintenance issues, due payments, or architectural approvals. To foster harmony and augment lifestyle value, master associations and their subs should collaborate and align their policies with the overarching community goals. This alignment demands transparency, cooperation, and clear communication.
Having multiple management companies with conflicting agendas is less beneficial and can be surprisingly common. If discrepancies arise, communities have the option to replace their management company with a more capable and aligned one. A more streamlined approach is for all associations to select a single management company.
Advantages of a Unified Management Company
When a single management company oversees all associations within a master-planned community, it mitigates conflicts and reduces homeowner confusion. Sub-associations no longer need to compete, and homeowners have one dependable point of contact for solutions and services. This setup enhances customer service, loyalty, and engagement while supporting the community's overall vision and improving quality of life.
Steps to Transition to One Management Company
If you're part of your homeowners association board and considering consolidating management under one company, here are some steps:
1. Review Your Management Contract:
Consult your management contract and legal counsel. Your contract outlines how to change property management companies, and if it's nearing expiration, it's time to explore new options. Ensure timely cancellation to prevent unwanted renewals.
2. Engage with Sub-Associations:
Garner support from other association boards to unify the community under one management company. Aligning on process ensures a smooth transition.
3. Evaluate Proposals:
Once you commence the search for a new management company, assess your community’s specific needs. This evaluation will guide you in reviewing bids and selecting the company that aligns best with your association's unique requirements.
