The process of selecting management for your community association is one of the most important decisions facing the Board of Directors. The goal of this process should be to establish a long term partnership with a firm that can help guide you through important decisions, establish solid operations policies, plan for future financial needs, and develop a positive sense of community.
The following four steps will provide you with an easy way to select the right management for your community.
The first step in the selection process should be to determine the companies that you will request to submit proposals. This is where you should gather information about the professionalism, company philosophy, and experience of the firms and the individuals within the firm. This should be done first by speaking with a principal of each firm and then requesting written information about the services they provide.
Evaluate the professionalism and commitment of the firms by asking them about the qualifications and experience of the principal and staff. Do they belong to organizations such as The Community Associations Institute and the California Association of Community Managers? These organizations offer certification and designation programs that test the basic knowledge as well as the advanced management skills of Community Association Managers. For more information on these programs see our Professional Designations page.
The basic philosophy of the firm should be evaluated to determine if it matches that of your community. Questions should include:
To evaluate experience, request information about the firm and the members of the management team.
After determining the firms that meet the criteria for your community, you should provide each with a request for proposal (RFP) that specifies the services desired by your community. The RFP should also include copies of the Association's governing documents (Bylaws, CC&R's, Rules & Regulations, Architectural Standards, Delinquency Policy) and a current financial statement to assist the firms in the preparation of their proposal.
Once the proposals are received you should schedule interviews with each firm that submits a bid containing all the elements in your request for proposal. Focus on services you requested, the firms' operating procedures, review of sample documents and reports, and any questions you have about proposed fees and charges. Following these interviews, the Board has to determine who is the best fit for their community. Don't be afraid to ask anything you have a question about at this time.
Here are a few suggested topics for the final interview:
Following the interviews check their references, which should include current association Board members and vendors that are working with the management firm.
Finally, after evaluating the firms you have interviewed it's time to make a decision. You should carefully evaluate everything you have learned through the literature you have received, interviews you have conducted, and the references you have checked.
All the steps listed above should be discussed during a properly noticed executive session meeting of the Board of Directors.