changing management companies is an expensive process in money, time, effort and loss of experience. Your contract isn’t necessarily set in stone, and something that worked for your community three years ago may not work now. Talk about those possible areas of improvement and find solutions. If your concerns are not being addressed, then it’s best to communicate that to the current company first so that everyone is on the same page. While this isn’t an easy conversation to have, you can help minimize animosity by letting them know your association’s plan.

You’ll also have to communicate with your fellow board members and owners. Do some research and define what you really want from your management company and manager. What are your expectations? Does your board agree on those expectations? These are important things you need to communicate while preparing your request for proposal (RFP), which is the next step in communication – working with potential management firms. It is important when sending out your RFPs for new management that you are very clear and specific in your expectations. If a certain requirement is not included in the RFP or communicated sufficiently to potential candidates, you run the risk of not receiving that “must have.”

Once you’ve selected your new firm, you’ll need to meet with them to provide as much background information as possible. While they will work with your outgoing management company on collecting documents, owner listings, etc., it is helpful for them to hear directly from you what your priorities are, what goals you have, major projects that are ongoing, meeting issues, specific board/ owner concerns, etc. Your background and information is as important to the process as the information they receive from their predecessor.

Last, but certainly not least, you will need to communicate to your homeowners and residents as they are more likely to have issues with the change. Not to say that they will be opposed to changing companies, but some will, and you have to be prepared for that. What you really need to be prepared for is getting your owners to change their habits – Where do we call with questions? What address do we mail our assessments to? What do you mean we have to fill out a new form for our auto-debit? These are the changes that cause the most aggravation to your owners and residents because it affects their daily life. Be prepared to hold their hands and answer many of the same questions over and over. They will need to be reassured that work orders will still be processed, that they won’t get a late fee if they mailed the assessment to the old management firm, that they can still email someone and get a question answered. Frequent, responsive communication throughout the transition process will help reinforce that the board and new management firm are prepared for the change.

While positive and proactive communication can help ease the pain and lessen the bloodshed during your transition, you still need to do some preparation as you enter this process.

Preparation

Like many events in our life, from running a marathon to fighting a war over your kingdom’s throne, planning and preparation are vital. Even if you’re not looking to change management companies right now, there are a few things you can do in advance to make it easier if you choose to make a change in the future. Reviewing your management contract and making a list of all of the tasks that they perform for you is helpful. Having a checklist handy not only aids you when preparing for a change in management, but it also helps you evaluate current performance so you can adjust your expectations throughout your existing relationship.

Your association should also have an inventory of what governing documents, keys, supplies, etc. your association may have. If you don’t have an inventory, now would be a great time to make one. Does your management company have your full plat of survey? Is the original recorded Declaration or CC&R available and easy to obtain? What about the By-Laws or Articles of Incorporation? All of these are important documents that sometimes get misplaced over the life of an association. Keeping tabs on who has them or who is responsible for maintaining them is important, and can help make a transition from one management company to another less stressful.

Time

The common thread between communication and preparation is time. You need to take the time now to prepare your association for future change. Between preparing and organizing, to bidding, interviewing, and selecting a management firm, the process of changing management companies is time consuming and can go on for many months. Some associations even prepare for it a year in advance! If you’re going to consider a change in management you should also consider the time of year and your current contract’s termination clause or end date and plan accordingly.

If your goal is to change the terms of your contract to run concurrent with your fiscal year, you should look at that timeframe and work backwards. It is helpful to set goal dates for scheduled communication to your owners, awarding the contract, interviews, sending out the RFP, etc. Working backwards from the date of transition can help you determine the amount of time you’ll need. For example, if you want the last date of service with company A to be December 31, you should be sending communication to your owners by December 1. In order

18 | COMMON INTEREST®

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