Is Your HOA Board Fulfilling Its Responsibilities In Connection With Hiring a Property Management Company

It is commonplace for homeowners associations to retain outside property managers to assist in the management responsibilities of the association. The process of selecting and retaining the right property manager involves many considerations and preliminary steps that are frequently overlooked by an association’s board of directors to the detriment of the association. As the association’s directors have the ultimate responsibility for properly managing the association and have a fiduciary duty to act in the best interests of the association, it is important for them to be aware of the steps that should be followed before they bind their association to a contract with a property manager.

Step #1- Know what the association’s governing documents provide about the retention of property management.