The to-do list for any homeowners’ association is lengthy on a regular basis, including enforcing policies, collecting dues, maintaining common areas, and more. While the HOA board members have the association’s best interest at heart, it’s not uncommon for these volunteers to be unable to dedicate as much time as they need to accomplish all these tasks. In these cases, an HOA management company is required. In this article, we’ll cover the major factors that need to be considered when looking to hire a credible and efficient HOA management company. Regardless of who oversees your property, a customized LA HOA Insurance policy will mitigate loss and curb financial responsibility.
While most states require property managers to have an active real estate license, no further credentials are legally required. Given the complex nature of many of the tasks performed by HOA managers, you may want to consider only candidates who have attained certification through Community Associations Institute, which offers specific training for association managers, or you may want to at least require candidates to have general property management certification, explains All Property Management.
When determining who would be a great fit for your community, evaluate the potential candidate’s communication and conflict resolution skills. These two factors are critical in resolving issues and ensuring the association is run professionally and smoothly. Find out about their skill sets by asking for examples of how they resolved major issues in the past and how they went about it.
Evaluating the contract.
If the management company isn’t working out, you want to reserve the right to terminate the contract. Contracts are typically valid for one year from the signing date. However, ensure the contract allows you to break it within approximately 30-90 days with a written notice.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.