Is it Time to Fire Your Property Manager?

Case Study:

Our firm was retained to take over management for a residential common interest development in Orange County for one reason: Their then current management company was not performing to the standards that the Board of Directors required. Additionally, the management company was not conducting business and maintaining the property in such a manner that attempted to limit the association's liability. Our firm has three goals when managing any project:

1.       Limit the association's liability to as close to zero as possible.

2.       Engage, communicate, and build unity with our boards and members.

3.       Educate, advise, recommend, and take action.

It has been my experience that many management companies tend to "sit" at a meeting, tell the owners the problems associated with the project, and hold their arms up and ask what they should do. Or, some management companies don't do any of that and surprise the board with issues at hand at a meeting. True, it is up to the board/members to make the decisions that affect the association, but it is our job as your association/property management firm to educate, advise, and recommend action to the membership based on our expertise and knowledge. An informed membership is better suited to make decisions that benefit the association as a whole. That information and those recommendations should come from the management company, or a collaborative effort between management and the membership. That's what we're paid to do!

So, when do you fire your management company? You fire your management company when they neglect to act in the best interests of the association and its members. If your management company is not communicating with the board and membership, failing to maintain accurate financial records, failing to maintain the property as directed, failing to stay in compliance with California State Law, or creating mistrust or angst within membership, it's time to move on. The longer an association waits to take action on firing a management firm that is not following our three goals above, the more the association opens itself to liability and disarray.

It's our belief that your business or home should be promoted and protected as much as possible in your association. But just as important, it should be enjoyed. That's why you purchase a home or a commercial building, correct? If you have experienced a poorly managed community, you can understand that it drastically affects your outlook on your investment. A poorly managed association becomes an unnecessary headache and creates an un-enjoyable environment for its members. A poorly managed association needs to fire its management company.