By Beth Mulcahy, Esq.
Is your Association Interviewing Management Companies? If so, here are some great questions to ask during the interview process:
What is the general appearance of the Corporate Office?
What are the hours of operation?
What is the age and experience of the firm?
What is the experience of the managers and staff?
Does the company support continuing education for managers and staff?
Does the company bid vendor services competitively?
Does the company own any service companies/if so how do they solicit competitive bids?
Is there a positive attitude by principles and managers?
Does the staff have good people skills?
What is the philosophy of the management company?
What bank charges will be assessed to the association?
How long does it take to deposit funds into the bank?
Can you track the association’s money?
Is there a lock box?
How are assessments collected and handled after collection?
Whose name will be placed on the bank account?
Who prepares the financial statements and what credentials, experience and education are held?
What is the size of accounting staff with what procedural checks and balances are in place?
What is the process for bill payment?
What experience is held with regard to capital budgets and reserve studies and funding?
Ask for samples of BOD meeting reports, and any other reports the association would need.
What insurances are held by the company and what is their carrier’s financial strength?
Does the manager that would be assigned to the association understand the association’s governing documents?
How often do you want inspections of the association?
The contract should allow either party the ability to terminate the relationship within a thirty day written notice without penalty.
Who answers the phones?
What is the average response time to homeowners?
How are messages conveyed to the manager, homeowner and BOD?
What are the extra charges that would be passed to the association?
Copies, Postage, Faxes, Office supplies, Office materials, Delinquency letters, Violation letters, Demand letters, Compliance letters, Bidding on contracts, Managing contracts, After hour emergencies, Attendance at board meetings, Special assessment collections, Storage of records, Interfacing with an attorney, Record storage, Bank charges, Transfer fees, Demand fees, Lien fees, Meeting minutes.