Making the Switch

🏡 How HOA Boards Can Transition to a New Property Management Company — A Nationwide Guide

Understanding the Role of Management, How to Evaluate Providers, and What to Expect in a Smooth Transition

⚖️ Understanding the Role of Property Management

An HOA management company supports the board—not replaces it. Their core responsibilities typically include:

• Financial services: budget prep, dues collection, reserve tracking

• Maintenance coordination: vendor scheduling, inspections, work order follow-ups

• Communication: resident inquiries, community updates

• Recordkeeping: governing docs, contracts, violations, meeting minutes

• Support: enforcement of board policies, not creation of policy

Important: A property manager should never act independently of the board’s authority. Their role is advisory and administrative—not executive.

“After hours of venting to our Collections Attorney, he provided our Board with a few compatible candidates. Getting a referral from a trusted and knowledgeable partner who is familiar with the style and professionalism of other property management companies was the key move to our success”— HOA Board President, Philadelphia

❌ When It’s Time to Reevaluate Your Management Partner

Across high-rises, townhomes, and suburban developments, HOA boards often encounter:

• Poor communication and long response times

• Inconsistent accounting or financial discrepancies

• Missed maintenance schedules or inadequate vendor oversight

• No digital portal or outdated technology

• Overstepping board authority

If you’ve experienced any of the above, it may be time to consider a change.

✅ What to Look for in a New Property Management Partner

Before making a switch, consider the following essentials when evaluating companies:

• Transparent financial systems

• Reliable digital platforms for residents and board members

• Experience with your property type (high-rise, townhomes, master-planned communities)

• A strong referral base from other HOAs

• Knowledge of local/state compliance regulations

📍 Pro Tip: Ask for referrals from legal counsel, realtors, insurance brokers, and board members in neighboring communities.

Once you've vetted all possible candidates, cover your bases and make expectations clear.

🔄 The Transition Process — Simplified

A smooth transition protects your HOA from disruption. Here's what a typical changeover looks like:

1. Review your current management contract

2. Issue a formal notice of termination

3. Notify homeowners early and clearly

4. Hire and onboard the new management company

5. Transfer documents and financials, including:

   • Governing documents (bylaws, CC&Rs)

   • Budgets and bank records

   • Past board meeting minutes

   • Service contracts, warranties, insurance policies

6. Request essential compliance materials from the new company:

   • 🛡️ Fidelity bond

   • 📝 Business license

   • 📋 Proof of general liability & E&O insurance

7. Launch resident access to the new portal and communication system

8. Update banks, vendors, and legal counsel with new contact info

🧱 Rebuilding Trust & Setting a Stronger Foundation

Changing management isn't just about solving problems—it's about setting your community up for future success. A new partnership allows your board to:

• Reestablish proper boundaries

• Clarify governance and communication standards

• Launch modern tools (virtual portals, real-time reporting)

• Build a forward-looking plan with community goals in mind

“We didn’t realize how toxic our old setup had become until we made the change. The board is more confident, and the community is more engaged.”— HOA Board Member, Colorado

🚧 What If the Outgoing Company Won’t Cooperate?

Some companies may delay or complicate the handoff. If this happens:

• Document all communications

• Lean on your new management company and legal counsel

• Preserve what records you can access

• Keep residents informed every step of the way

📣 Transparency Is Key — Keep Your Community Informed

Use regular updates, emails, and Q&As to help homeowners understand:

• Why the change is happening

• What improvements they can expect

• How to access new systems and support

A transparent process builds trust and reinforces the board’s commitment to the community.

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