Many HOAs choose to hire professional management companies and HOA managers to conduct operations. However, while hiring a professional may help, it’s still important to reassess and re-evaluate the manager’s work periodically to ensure they’re a good fit. Is the property manager doing a good job? When is it time to replace them?
Is the Property Manager Doing a Good Job? 12 Signs
What are the signs of an HOA manager doing well? Here are some tell-tale signs they’re a right fit for the community.
1. Good Leadership
Is the property manager doing a good job? One of the ways you can tell is by assessing their leadership skills. Are they able to lead meetings and the community residents? Do the people listen to them or ignore their input?
Property managers should be able to voice their opinions without being easily influenced. On the flip side, while a good leader must be firm, they should also be understanding and diplomatic. The property manager should be able to listen to others’ opinions and respond constructively.
2. Effective Conflict Resolution
Good property managers must be calm and professional during conflict. Some residents will resort to screaming, taunting, and name-calling. Good property managers will not show they’re frustrated or hurt by the people’s words. Otherwise, they might only intensify the conflict.
Instead, they must remain calm and professional even when the conversations are getting heated. A good property manager can handle tense circumstances with ease and de-escalate the situation.
3. Open Communication
A good property manager is quick to respond and easily reachable. After all, board members should be able to contact them in an emergency situation. The manager can then provide valuable insight to the board and help them overcome challenges.
Good property managers also facilitate open communication within the HOA. They should be able to hear out resident concerns and relay them to the board. On the flip side, they should also be able to communicate the board’s actions, decisions, and announcements to the community. This eliminates conflict and confusion arising from miscommunication.
4. Smooth Vendor Relationship Management
Working with vendors is a big part of community management. An efficient property manager will be able to effectively collaborate with vendors without much trouble. They should be able to execute contracts and fulfill projects on time.
The property manager should also be able to handle unforeseen circumstances and obstacles. They should be able to negotiate with vendors regarding the price, timeframe, and scope of work. Good project managers have general contractor knowledge and know what’s involved in various HOA projects.
5. Regular Maintenance
One of the most important jobs of an HOA is maintaining the common areas. If the common elements are well-kept and repairs are completed in a timely manner, then it’s a sign the property manager is doing well.
In addition, a good property manager will plan ahead for long-term maintenance issues. They should be able to advise the board when an upcoming major repair is about to happen. Plus, they should help the board plan how to use the reserves to keep the HOA financially stable while fulfilling its maintenance obligations.
6. Legal Compliance
Federal and state laws related to homeowners associations and community management are complex. Effective property managers will help the board remain legally compliant and update them on all the new regulations.
For instance, the new Corporate Transparency Act recently became effective beginning 2024. It requires HOAs to file beneficial ownership information with FinCEN. The HOA manger should be aware of the new law. They should guide the board on what, when, and how to file the information.
7. Proper Rule Enforcement
While a property manager may not be able to eliminate violations entirely, they can help the board enforce the rules more efficiently. A good property manager helps the board send violation notices, inspect the community for breaches, and coordinate with homeowners regarding fines and penalties.
In addition, they should be able to help the board create new policies and fine schedules. This allows the board to stay consistently enforce the rules. It allows them to remain fair and protects them from liability.
8. Effective Board Meetings
HOA board meetings are where the board members get things done. A good property manager will help the board schedule and facilitate meetings. They should help them create an agenda, stay on track during meetings, and even provide insight should they ever hit a roadblock.
In addition, the meetings should always be well-organized. A good manager will help with meeting notices, recording the minutes, and carrying out actions after the meeting.
9. Transparent and Efficient Financial Management
Financial management is one of the biggest reasons why HOAs hire community managers. Hence, it’s a good test to see whether the property manager is doing their job properly. If so, the community’s financial statements and accounting records should be well-organized and accurate.
They should also be able to help the board create a budget that’s fairly precise. This way, the board will not have to deal as much with overspending the funds. Moreover, the property manager should have decent accounting experience or knowledge, allowing them to spot inconsistencies, fund mismanagement, and fraud.
10. Keeps Things Confidential
HOA managers should be communicative. However, this does not mean they should tell all the community members about everything that happens behind the scenes. Good property managers should be able to keep certain things confidential.
For example, they should keep quiet when there’s an incident involving the HOA’s staff. They should also refrain from talking about delinquent accounts, resident health conditions, and anything under attorney-client privilege.
11. Streamlined Operations
An effective HOA manager should be able to streamline the HOA’s operations. They should introduce helpful software that can speed up a lot of the board’s tasks. Furthermore, they should be able to implement systems that allow the staff to get things done more efficiently.
12. Long-Term Planning
A property manager should help the board plan the community’s long-term goals. For example, if the HOA wants to build a new facility, the manager should help the board address obstacles and concerns such as funding, vendor bids, and timeline projections.
In addition, they should help the board conduct reserve studies and plan future assessment increases. They should also be able to directly tell the board whether or not they think the new project will benefit or harm the community — and what alternatives are available.
When is it Time to Replace the Property Manager?
Is the property manager doing a good job? If the answer is no, then it may be time for a replacement. But how can you tell between an honest mistake and a sign of incompetence or negligence? Here are some signs to watch out for that might signal it’s time to replace the property manager.
1. Lack of Communication
Communication is key in HOA management. If the manager is unresponsive and replies late, they may not be able to handle community matters or emergencies well.
2. Financial Mismanagement
Poor or inaccurate budgets can compromise the community’s financial stability and ultimately lead to debt. If the HOA constantly misses its budgetary or financial targets, it may be a sign to switch HOA managers. The board should also watch out for other signs of mismanagement, such as delayed vendor payments, late financial statements, financial discrepancies, lack of reserves, or unclear financial reporting.
3. Neglected Maintenance
Bad HOA managers might neglect maintenance. When you notice the landscaping, common areas, or amenities are unclean and poorly maintained, then it might be a sign the HOA manager needs to go.
4. Ineffective Enforcement
Signs of inconsistent enforcement or failure to enforce the rules should be red flags. The board should consider replacing the manager to avoid breaching their fiduciary duty or being held liable for selective enforcement.
5. Frequent Vendor Mishaps
The HOA manager should be able to handle vendor relationships well. If projects are delayed or yield substandard work, then the HOA manager may not be doing their job well. Another sign of mismanagement is when the HOA pays too much for unsatisfactory work.
6. Failure to Comply With Regulations
HOA managers should keep the board updated on new laws and regulations. If the community fails to comply, the HOA manager may be at fault for not informing the board. This puts the community at risk of penalties, fines, and even lawsuits.
7. Poor Resident Relationships
No matter how good a property manager is at their job, they might not be worth keeping if they have poor relationships with the residents. Keeping them on board might only cause conflict, compromising the community’s peace and harmony.
Prioritize Good Management
The HOA board hires professional managers and management companies for a reason. If it turns out that the property manager isn’t doing their job well, then the HOA might just be wasting its money. Make sure to watch out for inefficiencies or mismanagement so you can replace the property manager before they cause more problems.
Personalized Property Management offers premier management services to Southern California communities. Call us now at 760-325-9500 or contact us online to learn more!
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