Wednesday August 06, 2025
Why change HOA management companies?
Homeowners associations (HOAs) often change management companies in response to poor communication, delayed financial reporting, or lack of experience with Nevada-specific laws. Some boards also switch when their current management company struggles to handle large-scale projects or resident concerns. A professional HOA management company should help your board make better financial decisions, stay compliant with state requirements, and improve daily operations. If you’re consistently dealing with these issues, it may be time to explore other options.This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
How to change HOA management companies
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Review your existing management contract
Boards should first review their current contract to understand termination terms, notice periods, and any penalties for early termination. Nevada HOAs should also confirm whether their current agreement includes an auto-renewal clause. Check for requirements related to transferring records and financials to the new company.
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Notify your current management company
Once you understand the contract terms, provide written notice according to the required notice period (typically 30, 60, or 90 days). A professional letter should include your termination date and request a timeline for transitioning all association documents, bank accounts, vendor contracts, and digital files.
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Assess your HOA’s needs
Before selecting a new company, evaluate why your current company isn’t meeting your expectations. Are you looking for better financial management? More experienced vendor oversight? Stronger tools for resident communication? Listing these priorities will help you identify companies that fit your HOA’s specific needs.
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Research and interview potential new companies
Boards should request proposals from multiple companies experienced with communities like yours. Look for Nevada HOA management companies with proven track records, strong references, and knowledge of the Nevada Real Estate Division’s regulations. Interviews are an excellent time to ask about their transition processes.
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Select and sign with a new management company
Once you’ve chosen a new partner, review the contract carefully with your association’s attorney before signing. Confirm that the agreement clearly defines services, fees, and transition expectations. A strong contract can prevent misunderstandings during the onboarding phase.
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Coordinate the transition process
The transition process itself is one of the most critical parts of changing HOA management companies. Work closely with both the outgoing and incoming companies to transfer all records, including owner rosters, reserve studies, and financial reports. A reputable management company should provide a detailed onboarding plan that minimizes disruption to homeowners.
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Communicate with homeowners
Boards should notify homeowners of the change as soon as possible. Include the new company’s contact information, how to pay assessments, and any updates to rules or procedures. Clear communication helps build confidence in the board’s decision.
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Evaluate the new management company’s performance
Once the transition is complete, regularly review the new company’s performance. Track financial reporting accuracy, response times, and how well they’re addressing board priorities. Open communication during the first few months is essential to confirm they’re meeting expectations.
What will your new property management company do?
As part of a transition action plan, most community management companies will perform the following:- Obtain and review all legal documents, contracts, and operating agreements
- Review all financials, budgets and reserve funds
- Verify that all legal, compliance and operating safeguards are valid
- Communicate to homeowners, including welcome letters, website information, and events
- Order statements or coupon booklets for assessments
- Review current service contracts and negotiate/renegotiate the scope of services, fees, licensing, and insurance with current and prospective vendors
- Provide continuous status updates to board members
"A thorough transition process is critical for homeowners’ associations and community management companies because starting off on the right foot is what creates a long-lasting relationship. It’s also an opportunity to review and significantly improve the association’s current procedures and sets the expectation of what the board and residents should experience going forward."
Steven Parker, president of FirstService Residential in Nevada
Common mistakes to avoid
One of the most common mistakes boards make when changing HOA management companies is rushing into the process without fully reviewing their existing contract. Overlooking important details like notice periods or auto-renewal clauses can create legal or financial complications that delay the transition. Another issue boards often face is selecting a new company based solely on cost or a quick recommendation, rather than taking time to evaluate their experience with Nevada communities and check references.Some boards also underestimate the importance of legal guidance during the process. Having an attorney review the new management agreement can help prevent misunderstandings and protect the association from unfavorable terms. Finally, delaying communication with homeowners can lead to confusion and frustration.
Why choose FirstService Residential?
Changing HOA management companies is a big decision, and your community deserves a partner with the experience, scale, and resources to make a real difference. With decades of experience managing communities across Nevada and North America, FirstService Residential offers unmatched support to help boards operate efficiently, control costs, and meet their long-term goals.When you partner with us, you gain access to services and programs no other Nevada HOA management company can match:
- Dedicated financial management: Our CPA-supervised accounting team provides monthly financial reports, detailed budgeting support, and secure online access to financial statements 24/7. We help boards plan for capital improvements, manage cash flow, and reduce preparation costs for audits and tax filings.
- Proprietary technology and software: HODA®, our Homeowner Digital Assistant, responds to questions by text or web chat 24/7. HODA is integrated with FirstService Residential Connect and helps deliver detailed information specific to your community, such as account balances, service requests, booking amenities, and more.
- Exclusive banking and insurance programs: Through our affiliate FirstService Financial, we negotiate competitive banking rates and customized cash management plans to help HOAs maximize earnings on reserves. FS Insurance Brokers, an FFI subsidiary, provides proprietary insurance products designed exclusively for our clients, delivering strong coverage and competitive premiums backed by decades of loss data.
- Compliance expertise: We actively monitor Nevada HOA regulations and guide boards on budgeting, policy enforcement, and legal obligations to help reduce risk and avoid costly mistakes.
- FirstService Residential Connect™: A 24/7 portal for residents and boards to view account balances, request maintenance, and receive building updates.
- 24/7 Customer Care Team: Fluent in more than 20 languages, most calls are answered within one minute and 75% of all inquiries are resolved on first contact.
- Board education: We train board members on how to run meetings effectively, handle resident concerns, interpret bylaws, follow state regulations, manage budgets, and enforce policies consistently. Well-informed boards make better decisions, and we give you the tools to feel confident in your role.
- Transition process: Changing management companies can feel overwhelming, but we make it easier by working closely with your current management team and vendors to create a clear action plan with specific goals and timelines. We communicate openly with board members, residents, and staff throughout the process to keep everyone informed and reduce frustration, making the transition as smooth as possible.