Management Transitions Made Easy-er


Cathy Lemon


Hurray! The management company has a new client! Gaining their business is just the first step in a successful long-term relationship. The next step is to make the transition as easy as possible for all parties concerned – the association, new management as well as prior management.


Association management transitions can occur between several different entities:


self-managed association to management


company (and vice-versa), developer to management company and, of course, management company to management company. The transition basics are the same for the most part; however, there are a few idiosyncrasies for each scenario. For example: in a developer to management company transition, there are not any past owner account ledgers to transfer since assessments don’t generally commence until after the management company has taken over. For ease in reading this article, I will assume we are talking about a management company to management company transfer. The steps are similar for the other types of transfers but the parties involved may differ a little.


After having managed many transitions between management companies, I’ve realized that the most important keys to a smooth transition are: (a) a detailed checklist and (b) communication (with the prior management company, the new management staff and oftentimes the association’s Board).


My transition checklist is five pages long. It can be shorter in a lot of cases, but I like to make sure I have as many pieces of information as possible written down so I don’t have to remember them. It includes separate sections for the various people in the office who will be working with the client – the Bookkeeper, the Association Manager and his/her Assistant as well as the Records Coordinator or Website Administrator (if applicable). Each section lists tasks that need to be performed by that person. The checklist can be kept on paper or in a shared electronic file that everyone can access and update. Either way, the person in charge of the transition must review the list frequently to ensure that everyone is accomplishing their goals in a timely manner and nothing slips through the cracks. Depending on the amount of time left before the actual date of transition, this review can be once a week or every day.


18 Community Associations Journal | June 2017 The “Person in Charge” section should include items such as:


1. A header noting the full legal name of the association, the start date, the type of community and number of units, and the new manager’s name as well as the transition date at the top of the page. When tracking several communities joining the firm on different dates, this information is vitally important to keep everything straight.


2. Primary Tasks to be completed first. (The A through G items are requested from the prior management company.)


a. An owner roster with unit and mailing addresses (renters too, if possible)


b. Federal Tax ID# - so the bookkeeper can open a bank account for the client


c. Recorded Articles of Incorporation – again, so a bank account can be opened


d. Assessment amount(s) and due date(s) e. Late fee & grace period f.


Insurance information


g. Account ledgers for each owner account h. Receive the signed contract with the community i. Process and mail an introduction letter to the Owners j. Process assessment coupons (if necessary)


3. Secondary Tasks to be accomplished as documents are received.


a. This will vary from management company to management company, but generally consist of things like programming the community information into copiers, updating community lists, etc. Basically, all the administrative-type tasks that each association will need.


4. Outgoing Management Company’s contact information - not only for the company, but for their contact person (bookkeeper and prior manager too, if possible). This is extremely helpful as you will be communicating with the contact person throughout the entire process. It’s also handy to be able to contact the bookkeeper and prior manager if questions come up after the transition.


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