The Importance of the Management Company
The importance that the management company plays in the successful operation of a condominium or homeowners association cannot be overstated. We strongly recommend that community associations seriously entertain the retention of a management company to assist the board of directors in the day-to-day management of the association. However, in so doing, we must emphasize that not all management companies are created equally and sometimes vary widely in both the quality and quantity of services provided.
When looking for a management company, associations must ask several questions. For example, how large is the complex? Does a difference in structure mandate a difference in management companies? Some management companies are better suited to handle certain structures over others. Does a difference in population mandate a difference in management companies? Some management companies may not have the people power to handle larger, more populated and/or mature communities.
Does a difference in location mandate a difference in management companies? Some management companies may serve rural communities better than they serve urban communities and vice versa. Downtown high-rise developments certainly have their differences from suburban townhouse communities. While both developments would require general management skills, the management company of the rural community may need to know more about landscaping and ground maintenance, whereas the management company of the downtown high-rise might need to have extensive knowledge regarding elevator maintenance and a complex HVAC system.
Does the type of association come into play? Can one management company handle the likes of a condominium association, homeowners association as well as a cooperative? Should the association look to hire an on-site manager, or a portfolio manager who is also responsible for other properties?
There are several questions and concerns which must be considered before an association of any style and type chooses a manager or management company to represent their needs and interests. We strongly suggest that the condominium or homeowner association consult with legal counsel who is not beholden to a specific management company in order to make an informed decision.