Important Questions The HOA Board Needs To Address Before Entering A Management Agreement
As you might expect, this question is the most important for some HOA’s as each management company differs in some regard. The contract should clearly state the duties that the company is in charge of as well as the associated fees and expectations that the HOA has concerning how the duties are fulfilled. If there are any important tasks that the manager isn’t required to handle, such as updating the HOA website, the contract must state it clearly.
If the manager has to respond to urgent matters on the HOA website beyond their normal working hours, will the association incur an additional fee? What if the HOA wants to cancel the contract before it ends? You can avoid paying any hidden fees if you go over the details of the contract and understand how those fees are calculated.
Contracts can be renewed in two ways; either manually or automatically. Most HOA’s find it convenient to have the contract renewed automatically. Though, it’s always good to schedule a meeting with the company before the renewal date to discuss how everything is being handled while negotiating a new fee.
Ultimately, it’s the responsibility of the board to protect and enhance the association. For that reason, take the time to review any contracts thoroughly before signing them to ensure they’re consistent with the needs and goals of the association. The board should also consider having an attorney present when a contract is being reviewed to verify everything is in order.