Do you have issues with your Community Association or HOA management firm?
If your board has decided that your current management isn’t up to the task, you may be wondering what to do next.
Here’s how to switch Community Association Management (CAM) companies.
How to switch your CAM company
Having an HOA management company on your side has numerous advantages. An HOA management company usually assists the board with the day-to-day operations of the community. This can entail things like collecting assessments, interacting with homeowners, and monitoring service requests, among other things. It also ensures that HOA Board members are well-supported in their work and have access to the tools they require to create a thriving community. Ideally, working with an HOA management company should make everyone’s life easier.
But what if you realize that your HOA management company isn’t a suitable match? Or, even worse, that they are incapable of providing the services that you expect from them? In these situations, the HOA board members may want to consider hiring a new management company.
While many organizations succeed at assisting HOA communities with management, others fall short.
If you’ve ever wondered if it’s possible to change your Community Association management (CAM) company, the answer is yes. You certainly can. Once you’ve decided to switch Community Association management companies, you’ll want to make sure the process goes as smoothly as possible.
This article will help you manage just that.
Assess your current management agreement
The first thing you need to do is assess your current management agreements. When the Board of Directors agrees to change the HOA management business, the first thing you should do is get out the contract you have with the present management team and read it thoroughly. Examine the contract’s expiration date and whether it has an auto-renewal clause or not. In other circumstances, the simplest solution is to simply wait out the term; that is, to let the contract end before looking for a new HOA management company.
Provide notice to your present community association management company
Next, you need to provide a notice to your present community association management company.
Keep in mind that if you decide to replace your HOA management team, you may be obligated to give the present business a notice. Your service agreement should include the details, but the industry standard is 60 to 90 days.
If necessary, cancel early.
You may not want to wait until the present management contract expires, of course. If this is the case, you should look for a cancellation policy in the contract. You may still owe notice if you opt to cancel before the management contract expires. You may be required to pay a fee to the present HOA management team as well.
Consult your Community Association’s legal council
More importantly, you must consult your HOA’s legal council.
Before switching management companies, you should speak with your HOA attorney. The lawyer will be able to look over both the existing contract and the new contract you sign to ensure that all legal grounds are covered.
Keep an open line with your current CAM throughout the process
It’s essential to keep the community informed when changing CAM companies. Send out notices regarding the new community manager, including an explanation of why you chose to change CAM company and what homeowners can expect from the next steps. Invite them to come to you with any queries they may have.
Finally, you can start looking for a new community manager
We’ll go over more precise guidelines in a later section, but for now, just know that you won’t want to waste time looking for a new homeowners’ association management firm when switching HOA management companies.
No homeowner association or community association should have to pay their management provider for their sheer incompetence and poor service.
Knowing how to distinguish between high-quality and low-quality community managers and HOA management companies will enable you and your Community Association to make the best decision for your community’s requirements, whether that decision is to keep your existing HOA management company or not.