When a condominium association brings on a new
management company, it marks the beginning of a fresh and collaborative partnership, not unlike when two families are joined through marriage. This transition period offers an opportunity to harness the additional knowledge and capabilities of your new management partner and establish a shared vision of your community’s success.
Change, even when positive, can feel uncomfortable at first. Your new in-laws might have some unique traditions that initially seem unusual but end up becoming valuable new traditions for your new blended family. New relationships are exciting but can also be stressful until you get to know and become comfortable with your new partner. By recognizing this period of adjustment and focusing on building a strong relationship, you can set the foundation for a thriving partnership.
Start with a clean slate. You have finalized your “divorce” with your former management company. Let go of past frustrations. Do not go into a new relationship assuming that the new company will do (or not do) things the way the prior company did them. For instance, if your prior manager routinely delivered board packets at the last minute, do not assume the same will happen again. Give your new management company the opportunity to prove themselves capable and reliable.
Let go of “that’s how we always do it.” As difficult as change can be, it often opens the door to improvements. Your new management company may recommend updates to your operating procedures, which could increase efficiency or reduce costs for the association. You do not need to immediately change all your processes, but a fresh perspective might reveal opportunities that could benefit your association.
Review your vows. Board members should familiarize themselves with the terms of the new management contract, and community managers should review the association’s governing documents. Both “families” being familiar with the documents that outline your relationship can get you off to a good start and prevent unnecessary misunderstandings. For example, the management contract outlines what the management company agrees to do for your association for the regular management fee. It should also outline what extra projects or services may incur an additional charge. If there are tasks not included in the basic contract that your board believes are essential for your association, ensure they are negotiated and included in the contract. For example, don’t get upset with your new manager for not making weekly property inspections if your contract only includes two inspections per month.
Similarly, every community association is unique. Your community manager should thoroughly review your governing documents and follow up with the board when there are any uncertainties regarding the operations of your association, such as restrictions on moves or the timeline for assessing late fees.
24 | COMMON INTEREST®
Transfer Essential Data. Make sure that your prior management company transfers all your important data over to the new management company. While this is a fresh start for your community, the association’s historical data is vital for effective management. While your management company likely maintains your books and records, the records themselves belong to your association. Ensure your previous management company transfers all essential records, including financials, meeting minutes, vendor contracts, reserve studies, budgets, insurance policies, and resident contact information. These details enable the new management company to hit the ground running, maintain accurate records, and communicate effectively with the community.
Communicate early and often. Proactive communication between the board, the new management company, and the association members is key. Inform homeowners and residents about the transition, including where to send assessments, who to contact for maintenance issues, and any changes in procedures. Clear communication reduces confusion and ensures a smooth transition. While a considerable amount of communication will occur between the board and management, communication with owners from the new management company will likely occur the month prior to the transition to avoid confusion.
Set goals and priorities. While many of the priorities of the association have likely already been discussed during the interview process, make sure that the board meets with the community manager assigned to your association to clearly review the association’s expectations. Listen to each other. Discuss any capital projects outlined in your reserve study, the funding plans for those projects, and the support needed from the manager. Usually, communities change management companies for a reason, often because their priorities have not been adequately addressed. Review outstanding tasks with your manager and mutually agree to targeted completion dates for these projects. If there is a backlog of deferred projects, set priorities for your new manager of which tasks need to be addressed first.
Transitioning to a new management company is an opportunity to strengthen your community by embracing fresh ideas, improving processes, and building a collaborative relationship. By starting with a clean slate, fostering open communication, and clearly defining goals and expectations, both the board and the management company can work together effectively. Change can be challenging, but with mutual respect and a shared focus on the community’s success, this new “marriage” has the potential to thrive. Approach the transition with openness and a commitment to building a strong foundation, and your association will be well-positioned for a bright and productive future.
• Spring 2025 • A Publication of CAI-Illinois Chapter
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