Why a Team-Based Transition Approach Benefits Your Community
Transitioning from one property management company to another is a complex and demanding process, even in favorable conditions. Without the right resources and meticulous attention to detail, things can quickly go awry. To avoid serious financial pitfalls during such transitions, homeowners associations (HOAs) should consider engaging a management company that offers a dedicated team of experts to oversee the process.
Relying on the outdated method of assigning the massive responsibility of transition to an overstretched community manager invites disaster. The workload involves too many vital tasks and deadlines for one individual to handle without errors. A poorly managed transition will undoubtedly cause frustration among residents who generally dislike change unless it is smooth and trouble-free. The transitions handled most effectively are carried out by community management companies employing a team approach to take over from previous management.
Essential Tasks During a Management Transition
Board members who have experienced a management transition know that most of the work typically falls on them and a usually overburdened property manager, who might be managing multiple properties. Some boards have been so affected by past transitions that they decide against changing management companies out of fear of repeating the process. As volunteers, board members might not always have the time or skills needed to assist a new property manager with the transition.
Key tasks in a transition include:
- Conducting a comprehensive assessment of every aspect of the property
- Meeting frequently with the board of directors
- Ensuring timely and accurate billing
- Reviewing the HOA budget and making recommendations
- Evaluating contracts with vendors
- Examining insurance coverage
- Meeting, evaluating, and training current staff
- Acquiring and training new staff
- Implementing new software systems and transferring data
- Opening new bank accounts
- Receiving official documents from the former management company
- Implementing a resident communication plan
Potential Pitfalls in a Management Transition
The transition, which usually occurs 30 to 60 days before the new management company's handoff, is a complicated process that must not be rushed. With no room for errors, the process becomes difficult for a lone property manager and the board to handle flawlessly.
Common issues during transitions without a team approach include:
- Missing official documents, as previous management must transfer all records
- Delays in printing or sending statements
- Incorrect billing and assessment fees
- Poor communication with residents, resulting in complaints and rumors
- Anxiety among existing staff about potential terminations
- Inconsistencies and errors due to differing computer software programs
- Financial mistakes
- Oversights in vendor contracts
Imagine the relief when a team of experts in administration, human resources, accounting, and information technology, along with the new community manager, collaborates with the community well in advance of the contract start date. With a team supporting the board, the chances of a seamless and trouble-free transition skyrocket.
The Benefits of a Team Approach in Transitions
The team-based strategy is the most effective way to switch from one property management company to another. Starting up to 60 days before takeover, the client transition team begins its work by analyzing, reviewing, and recommending improvements for every aspect of the community. Typically, this team includes up to six professionals, far surpassing the capacity of a single, overworked property manager.
Key Roles in Transition Teams:
- Transition Lead: Serves as the primary contact for the board and residents, coordinating all team members. This individual frequently engages with the board, reviews the community comprehensively, collaborates with the current management to gather information and documents, communicates with residents via the board, and sets goals and timelines for tasks. This role could be fulfilled by the community association manager, a portfolio manager, or another knowledgeable professional.
- Accounting Specialist: This role involves reviewing the association’s budget, bookkeeping, and financial matters to ensure compliance and accuracy. The specialist identifies opportunities for better returns, optimizes the operating budget, minimizes risks, and protects assets.
- Human Resources Specialist: An HR expert assesses current staff, addressing concerns and explaining the transition process. They provide feedback to the board about which staff members should stay, new hires, and company policies regarding payroll and training.
- Information Technology Specialist: This specialist ensures the community's computers and software are operational with minimal downtime.
- Corporate Support and Resources: The entire transition team benefits from the backing of a corporate staff with comprehensive experience in community management.
Switching from one property management company to another is a complex and labor-intensive journey that every community will eventually take. It doesn't have to be difficult. Hiring a management company with a team of skilled professionals to guide your board through the transition can make all the difference.
