Choosing a management company is a decision your association will live with for years. A good fit may lighten the load on volunteers and add structure, while a poor fit can be frustrating on both sides. Asking questions up front is one way to compare.
Here are some questions boards may want to consider, grouped by topic, along with what to listen for in the answers.
Experience and approach
How long have you managed associations, and what kinds?
Look for experience with communities like yours. A single-family subdivision has different needs than a large condominium building.
How do you see your role with the board?
Many boards look for a balance: a manager who respects that the board sets policy and also raises issues, explains options and offers recommendations.
Services and plans
What exactly does each plan include?
Consider asking for a list of services by plan. Financial, governance and vendor work are often separated. It helps to understand what is included, what costs extra and what stays with the board.
What do you not do?
This question can be useful. A company may explain, for example, that it does not settle neighbor disputes, give legal advice or perform physical repairs.
Can we change plans as our needs change?
Associations grow and change. Flexibility to add or adjust services is worth asking about.
Finances
How are the association’s funds held?
Ask whether funds are kept in accounts in the association’s name, who can approve payments and how the board can see activity.
What financial reports will the board receive, and how often?
Consider asking to see a sample report, so the board can judge whether it is easy to read.
How do owners pay dues?
Modern options, such as online one-time or automatic payments, may be convenient for owners and the board. Ask about any fees owners may pay for certain methods.
How is pricing structured?
Many companies price per door or lot per month. It helps to understand what the fee includes and whether there are setup, transition or other charges.
Communication
How do board members and owners reach you?
Ask which channels are offered, such as a portal or phone. Written communication can create a helpful record.
How do you keep the board informed between meetings?
Listen for how reporting works and how the board hears about items that need a decision.
Who handles owner questions?
Know which questions the manager answers and which come back to the board.
Governance and records
How do you support meetings?
Ask whether the company provides agendas and minutes, and on which plans.
Where are the association’s records kept, and who owns them?
In general, records belong to the association, though documents and law control. Ask how they are stored and how the board can access them.
Transitions and contracts
How do you handle a transition from our current manager or from self-management?
Ask how the company approaches records, bank accounts and owner communication during a transition.
What are the contract terms?
Ask about the length of the agreement, how either side can end it and how fee changes are handled. Many boards have an attorney review the contract before signing.
Questions to ask yourselves
Before interviewing companies, some boards find it helpful to discuss a few things internally:
- Which tasks take the most volunteer time today?
- Where would an experienced guide help most?
- What level of service fits the budget?
- Who will be the board’s main contact with the manager?
Clear answers can make it easier to compare proposals.
Reading a proposal side by side
Once proposals arrive, lay them out next to each other. List the services each plan includes, the monthly fee and any one-time costs. Then note how each company described its approach. Did it explain how it works with boards? Did it answer your questions directly? Did it describe what it does not do?
How a company communicates during the proposal stage may also give the board a sense of its working style.
Some boards also ask for references from associations of a similar size and type. Ask what the working relationship is like, how reporting works in practice and what they would change. Those conversations can add useful context.
Frequently asked questions
How many companies should we interview?
Two or three is often enough to compare approaches without overwhelming the board.
Is the lowest price the best choice?
Not necessarily. Many boards compare what each plan includes alongside price.
Should owners be involved in choosing a manager?
The board usually decides, and some boards share their reasons with owners. Check your governing documents for any requirements.
Do we need an attorney to review the contract?
Many boards choose to. An attorney can explain the terms and how they fit your documents.
Ready to start the conversation?
Ironhorse Management has served Montana associations since 1979, and we’re happy to talk through these questions. Learn more about our HOA management services, or request a proposal.
Please note: This article is for general informational purposes only and is not legal, financial or tax advice. Every association and situation is different. It’s wise to consult an attorney and/or CPA for legal or financial matters, and to review your governing documents and other appropriate resources before making decisions, rather than relying only on this article.
