Being a condo board member isn’t easy. Boards invest hundreds of volunteer hours yearly just to sustain building conditions, operate within budget, and keep homeowners happy. But when staffing doesn’t meet executive support or physical repair requests begin to exceed staff capacity, it may be time to hire a condo management company. Though, finding the wrong vendor can drain your reserves, expose your association to unnecessary liability, and upset homeowners.
Your board has to interview several firms before finding one with a track record of protecting community investments. Asking pointed questions is how you weed out bottom-tier providers from comprehensive management solutions. From administrative procedures and preventive maintenance to budgeting and financial transparency, your condo association management company should, of course, excel at managing condos. Equip your board with these fifteen questions to ask before hiring a condo management company.
Why It’s Important to Choose the Right Condo Management Company
Hiring a professional condo management company helps maintain property values, minimizes legal liability, and can reduce volunteer board member stress. A good firm serves as your on-site operational arm versed in local rules and physical asset care, allowing for seamless community operations day-to-day.
Condo buildings operate under a different set of challenges than single-family neighborhoods. Think centralized mechanical systems, vertical living constraints, elevator maintenance, and enforcing complex governing documents. While your board provides homeowners with local leadership, experienced property managers keep your association’s physical infrastructure and financial records in check.
From decoding Texas Property Code to maintaining building components and offering accessible financial insights, your management partner can alleviate common frustrations faced by volunteer boards. Mismanaged condo associations often deal with inconsistent maintenance, HOA property owner vs. HOA disputes, and board burnout. When you work with a team that prioritizes vendor vetting and preventative maintenance, you remove emotion from enforcing deed restrictions and streamline architectural reviews, late fees, and collection policies.
What Experience Do You Have Managing Condominiums?
Ask about a company’s portfolio concentration, manager retention rate, and familiarity with condo/high-rise or mid-rise buildings. Condo communities are unique because they require horizontal and vertical knowledge of common property care, shared resources, and high-volume resident interactions.
1 – How many condo communities do you manage?
Managing attached multi-family units or vertical buildings is not the same as working in single-family neighborhoods. What experience does the condo association management team have with high-rises or other condominiums?
2 – What is your manager retention rate?
Every community manager has a portfolio. If a firm assigns your condo to a manager who oversees dozens of properties, precious attention will be lost. Annual staff turnover also impacts knowledge continuity; you don’t want to constantly train new faces on how your condo operates.
3 – How do condo association managers stay current on local laws and Texas Property Code updates?
Ignore the Texas Legislature at your own risk. Statewide property laws, municipal housing ordinances, and insurance requirements all influence your association’s legal compliance. How does your management team plan to keep you informed of changes to voting mandates, ARBS guidelines, reserve study requirements, and more?
4 – Can you share previous client references with homeowners who own property in a similar-sized condo?
A reputable company will have happy clients. Ask to speak with board members from associations that are close in size and age to your community. When you interview references, ask about responsiveness, financial accuracy, handling of complex physical repairs, and more.
What Services Are Included? Understanding Condominium Management Services
Expect a breakdown of services that differentiates core contract services from upsell fees. Standardized condo management services include holistic financial management, regular property inspections, vendor coordination, and board meeting support.
1 – What services are included in your base fee? What do you charge extra for?
Some companies charge a low monthly fee but make associations pay for everything else –copies, postage, late notices, board meeting attendance, etc. Every management company should provide you with a schedule of fees. Ask for one upfront to compare costs apples-to-apples.
2 – How are manager workloads distributed?
Avoid firms that overload team members with too many communities. One manager may be fully loaded with seven condo associations. Who will manage your property? Request that your prospective firm assigns a specific team member as your main point of contact. Proper portfolio distribution ensures all communities are evenly distributed among senior staff.
How well is your current management company servicing your condo association?
- Does your manager return non-emergency phone calls or emails within 24 hours?
- Are financial statements delivered a week before board meetings?
- Do you have a current, independent reserve study?
If you answered “No” to any of the above questions, it might be time to request proposals from full-service companies.
How Do You Support Board Members? Improving Condo Board Management
Boards run smoother with thorough meeting packets, transparent financial reporting, and an objective third-party ally. Prevent burnout by hiring a condo management company that prioritizes administration so you have more time to strategize.
1- When do you send monthly board packages, and what information is included?
Board members make decisions based on the information they’re given. Properly managed associations send bank reconciliations, delinquency reports, balance sheets, open work orders, and more to the board a week or more before meeting dates. Quality condo management companies equip your board with the financial data needed to make confident decisions.
2 – What is your company policy on enforcing deed restrictions and handling owner disputes?
Remember when we talked about removing emotion from day-to-day operations? This question is where that advice becomes crucial. Enforcing community rules can be difficult. Will the vendor send warning letters internally, or do they have a recommended attorney on retainer? Once again, it’s about setting clear expectations and defining your community’s policies ahead of time.
What Technology Do You Provide Residents? Modern Condo Property Management
Reputable condo property management companies offer secure online portals. Property portals allow residents to pay dues online, submit maintenance requests, view community documents, and help board members easily review financial trends and open work orders.
1 – What technology/apps can residents and board members access?
Dues payments should be convenient. As a homeowner, you should be able to log into an online portal to pay association fees, file maintenance requests, view board meeting minutes, and access your account history. Partners that integrate financial transparency and streamline maintenance operations will improve communications between your homeowners and community staff.
2 – How do you manage online payments and protect our financial data?
Texas Associations are prime targets for cyber attacks due to stored resident information and association account funds. Make sure management companies use encrypted databases, payment gateways, and member-level permissions to protect against cyber threats.
How Do You Handle Maintenance and Vendor Management?
Top firms screen all vendors, track bid requests, and monitor physical job completion. They verify trade contractors hold proper licensing and insurance before scheduling repairs or maintenance for shared amenities.
1 – How do you screen prospective vendors, and do you take any referral fees on vendor work?
Regardless of what a manager might say about “trusted” vendors; confirm that the companies you’ll be working with provide proof of general liability insurance and workers compensation insurance before starting any physical work. Manage your risk by choosing a firm that does not accept kickback fees from contractors.
2 – Who do I call if I have an emergency after hours? Our building has a leak. What do we do now?
Property emergencies do, in fact, take place after 5 p.m. and on weekends. Ask about their emergency escalation process. If an urgent issue arises, you should never be routed to voicemail or an answering service. Members of your management team should answer those late-night calls.
How Do You Manage Budgets and Financial Reporting? Protecting Association Funds
1 – How do you support daily bank account reconciliations and reserve studies?
Managing association funds is the Board’s fiduciary duty. Does the management company offer daily account reconciliations? Are your reserves being held in a separate account earning interest?
2 – What internal controls are in place to prevent fraud?
Require dual-signature on all checks, annual third-party audits, and fidelity insurance are just some of the ways to protect your association from dishonest employees. Verify that the management company you hire has strict protocols in place to prevent embezzlement.
What Are Your Communication Standards?
1 – What response time can we expect from managers when we call or email?
Nothing makes homeowners angrier than voicemails. Set the expectation for phone and email response times up front with management and board members. You should also hold your management company to the same communication standards your community expects from your board.
2 – How will I know if there is a water pipe break or urgent bulletin to share with homeowners?
Think your manager notifies you about everything? Guess again. When emergencies happen, speed is critical. How will you be updated? Do they provide residents with text message alerts or customization options through the community portal? You deserve a partner that proactively surfaces problems.
Common Red Flags When Interviewing Potential Management Companies
Some firms may try to gloss over deadlines, hide fees in contract line items, or downplay staff turnover. Below are several advisories to consider when meeting with condo management companies.
- Management companies should never have common bank accounts. Both operating accounts and reserve funds should be held in their own respective bank accounts.
- Your manager should have direct access to your financial records. Be skeptical of managers who only provide monthly financial summaries or packaged software reports.
- Managers should prioritize continuing education to keep your association compliant. Look for specialized designations or industry designations from agencies like the Community Associations Institute (CAI).
- Trust your gut. Does the company make you feel like just another community, or are they eager to get to know you?
Hiring a professional condo management company can elevate an average condo association to an exemplary one. By asking the right questions about property portfolio density, financial safeguards, physical property care, and customer service standards, you can hand-select a vendor committed to your community’s success.
Call Us Today To Learn How SBB Management Company Can Help
Running a condo association is only as difficult as you make it. From local Texas Property Code quirks to vertical property maintenance and transparent financial reporting, SBB Community Management Company has your condo covered. Since 1968, we’ve helped Texas community associations scale heights others didn’t think were possible. Specializing in highly-trafficked properties, we assign your condo to our most knowledgeable team members so you’ll always work with the same management staff.
Frequently Asked Questions
What is the difference between condo management and HOA management?
HOA vs. Condo management. Condo management services take vertical system maintenance, high-density shared elements, and multi-family staffing into account. HOA management is a more generic term that can apply to condominium associations as well.
How much does condo management cost?
Across our serviced regions, the average condo management company charges between $35-$55 per unit/month. Some companies operate with a flat administrative fee. We recommend asking what out-of-pocket expenses will look like before signing a contract.
What services should every condo management company provide?
Budgeting, vendor management, open communication, preventative maintenance, and financial transparency are traits of every quality management company.
