Why do so many associations change management companies? There’s no singular answer. Sometimes it’s just one bad experience; sometimes managers are just walking through work life without dedication to their communities; sometimes it’s the additional costs of the management contract. What definitely shouldn’t be the reason is the concept we must change management companies every 3-5 years - just to change!
Most management companies are above board and professional; timely with work and answers to questions; empathetic and competent in helping the homeowners. After all, managers are in this line of work to make the community association experience better; more simple and less complicated. Sometimes the almighty dollar is more important than the quality of management, whether that’s for the association or the manager. We don’t want management companies looking for revenue streams instead of addressing the needs of the community, but we also don’t want associations negatively impacting the success of the community by going with the cheapest management option to save a few bucks. The ultimate goal is for the management company to perform in such a manner that considering a change in management is never even a question to consider.
What nobody wants? Sometimes there are new board members who run for the board because they had the experience of being told “no” by management. So one person might get offended and have this personal need to somehow exact payback for that perceived slight. Somebody runs for the board with one agenda, and that is changing the manager or management company. So what happens then?
Changing companies often leads to bad transitions, new systems that mean homeowners must now change bank account payments, change familiar procedures, and also adapt to new managers or personnel working with the association. Then it takes up to (or at least!) one year for things to function without glitches. The adage of “if it isn’t broken don’t fix it” likely applies. If the board of directors buys into a relationship that’s about the “gotcha” mentality instead of working together for the common good, there will be distress for the community instead of greater success. Proper planning to prevent poor performance is the best way to allow these relationships to succeed. Change for the sake of change never works. You often end up with no consistency, no communication or even no board members.
If board members were perhaps more involved in volunteering and perhaps took advantage of CAI educational opportunities, they might learn that changing management companies is generally not in the best interest of the community. Most of the time, whether in condominiums, co-op buildings or common interest communities, the management company and the individual agents are doing their best to serve their clients. Those client community associations work with the management companies and managing agents to ensure that the association runs
16 | COMMON INTEREST®
smoothly. However, from time to time for one reason or another, the partnership, or marriage if you will, may break down.
The relationship between the association and management company is usually one with deep roots and a long history. As in any long-term relationship, there are bound to be bumps in the road. Furthermore, the longer a working relationship lasts the better the two sides understand one another - warts and all. Switching management companies is not as simple as switching landscapers or painters. Never make change only for the sake of change; never because someone is having a bad day; never because someone was told “no” by the management company, especially when the management company is protecting the association and its members from violation of their declarations and by-laws.
As I was thinking about the past even further, I reminisced about managing five associations for more than 25 years, and two associations for over 10 years. I have been fortunate enough to have strong relationships, and walk in kindness, integrity and professionalism. Have I made mistakes? Of course. What you do about any mistakes and how you ultimately handle them makes all the difference. Be honest, apologize, ask forgiveness, and move on to the next thing.
One commonality may be the longevity of some board members. Their willingness to serve the community for many, many years whether by their own choice or because nobody else in the community will step up to volunteer their time and effort. The real trick here is to get involved in continuing education for homeowner board members as well as managers, and even work to educate the members of the community. Learn, learn and learn some more. Get involved with mentorships for managers in your firms or in the industry, mentor the board members in your community, and help board members find mentors of their own.
The real goal here is to make all communities better, greater and stronger. There are so many things to consider within our circle of influence. Working together to create a sense of community; one with strong ties which enables the growth of community unity and the more tangible growth of property values, leading us to a greater sense of accomplishment for the betterment of all the communities we serve.
Things to avoid? Over time, management may become complacent. Boards and management may fall into a rut. Management companies may not visit the property as much or as often as they should. Maybe it takes longer to get answers or respond to calls or it’s slower to dispatch vendors. The major motivator to change management is also the major motivator for success or failure. If you are able to get to know all the homeowners, show them respect. Remember that anyone who calls is your boss and the treatment of those community members is of the utmost importance. There may be legitimate reasons to change management companies, but we should be striving to find ways to maintain the relationship year after year after year.
• Spring 2025 • A Publication of CAI-Illinois Chapter
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