What to Expect When You Transition to a New Condominium Management Company
Your condo corporation has made the decision to switch to a new condominium management company. Maybe you just don’t have a good a relationship with your current management company anymore. Or perhaps you want a company that provides better products and services, greater value or experience that is more in line with your community’s needs.
If you have not yet chosen your new management company, read this previously posted article to find out what to consider. However, if you have already made your decision, you may be wondering what actually happens during a transition. Although every condo corporation has unique needs and each condominium management company has its own operating procedures, many aspects of a transition follow a similar process.
- You notify your management company that you won’t be renewing your contract.
The contract with your current condominium management company will specify how much advance notice you need to provide. Usually it will be either 30, 60 or 90 days, so make a point of notifying the company as soon as possible.
- The current management company makes a list of materials it will need to transfer.
The new company will need to obtain documents and other materials pertaining to your property from the outgoing company. Most often, the two companies manage the transfer on their own. If you are apprehensive for any reason, communicate that to both companies.
- The new condo management company develops a plan of action.
The action plan is tailored to your particular community and incorporates a detailed list of operational and management initiatives. Most likely, your new management company will have an established process for making sure that the transition stays on schedule and that every step goes smoothly. Some companies even provide a dedicated launch team to handle the transition.
The new management company collaborates with your board of directors to set long-term goals, create a timeline and establish deadlines. In addition, management companies often employ a checklist to keep activities on track.
The new management company collaborates with your board of directors to set long-term goals, create a timeline and establish deadlines. In addition, management companies often employ a checklist to keep activities on track.
- The new company undertakes each item on the action plan.
Some of the actions that many incoming condo management companies take include:
- Obtaining and reviewing governing documents, contracts and operational agreements
- Verifying the validity of operating, compliance and legal safeguards
- Reviewing budgets, financial statements and reserve funds
- Ensuring that you have appropriate insurance coverage with no lapses in your current contracts
- Assessing your contracts, plans and operating procedures and making needed improvements
- Negotiating or renegotiating rates, service levels, etc., with new and existing vendors
- Communicating with homeowners, including sending out welcome letters and hosting events
- Updating condo board members regularly on status and activities
For example, FirstService Residential introduces homeowners to its proprietary condo management software, which simplifies tasks for board members and residents, and to the company’s Customer Care Center. We also review your staff and policies, revise front desk policies and procedures (if needed), create job descriptions and personnel manuals, and conduct staff training.
Transitioning to a new condo management company can seem like a big task. However, with the right company, it can be a smooth process that ultimately benefits your condo corporation.
Learn more about easing your transition to a new management company. Contact FirstService Residential, Alberta’s largest condominium management company.