How to Select an HOA Management Company

The following are some important points to cover when interviewing potential HOA management companies for your association.
 

General Information

• How long in business
   
• Oldest accounts
   
• Largest accounts
   
• Clients similar to your association in size and type
   
• Have you inspected properties they manage
   
• Have you talked to other Board Members they represent
   
• Does the company specialize in homeowner’s associations

Cost Containment

• How committed is the company to saving dollars for the association
   
• Where have they realized their biggest savings
   
• Ask for examples of steps taken by the company in which their associations have realized cost reductions and the dollars saved as a result

Financial Information and Risk Concerns

• Track record in collecting delinquencies
   
• Method used for late payment notices
   
• Is financial reporting provided monthly
   
• How often are bills paid
   
• What accounting system do they use
   
• Is there a lockbox system which deposits homeowner assessments daily
   
• Are in-house delinquent collection services provided
   
• Are the company and its principals bonded
   
• Does they carry fidelity insurance

Assessments

• Does the company provide assessment notices, statements, or invoices
   
• Are assessments deposited directly into your association’s account when received by the management company
   
• Are association accounts kept separate

Operational Considerations

• Where is the management office located
   
• Have your Board Members visited the company’s offices
   
• Is the company growing or declining in stature
   
• What is the reputation of the company in the market place
   
• How many employees
   
• How many managers, administrative assistants and accountants
   
• Who is responsible when your Community Manager is out of the office or out of town
   
• What is your policy for returning calls and emails
   
• Do you track calls coming in and provide a call log with the management report
   
• How are weekend and after-hours calls handled
   
• What kind of emergency or disaster preparedness plan does the management company have for its properties
   
• Does the Manager’s supervisor also manage communities
   
• How many associations is a Community Manager responsible for
   
• What type of training is provided to Community Managers
   
• How many times will the property be visited/inspected each week
   
• Frequency of property inspection for CC&R’s and Rules Violations
   
• How well versed is the firm on legislation affecting associations, and is it pro-active in representing your association’s interests in such matters
   
• How do they keep Board members informed of legislative changes

Professional Credentials

• Is the company a member of CAI (Community Associations Institute)
   
• How many managers are PCAMs, AMSs and CMCAs (Professional Community Association Managers, Association Management Specialists, and Certified Manager of Community Associations)
   
• Is the company a member of AACM (Arizona Association of Community Managers)
   
• How many managers are CAAMs (Certified Arizona Association Manager)
   
• Does the company encourage and promote continuing education for their managers

Community Unity

• What is their philosophy of community unity
   
• How do they assist the Board in fostering a spirit of community
   
• How do they give back to the greater community � outside of the communities they manage