J.B. from Hartford County writes:
Dear Mister Condo,
I am new to our condominium board. The previous board never reviewed our property management company. I would like to do that on an annual basis – to assess their work and performance for the year. Do you have any suggestions as to how to do that (quantitative, qualitative) and who should do it (Board only, homeowners)? Thank you.
Mister Condo replies:
J.B., reviewing the work and services of every vendor employed by the association is a great idea. The Property Management Company is just that – another vendor. However, unlike other vendors who perform work and leave, the Property Manager is with the association 24/7, 365 days per year. Generally speaking, if the Board is unhappy with the work or the price paid for the service, it is known immediately. Also, Property Managers have contracts, usually for multiple years. These are not easily broken unless clauses have been violated. If you were to review a management company at Year 2 of a 5-year contract and determine you were unhappy, you couldn’t simply break the contract without consequences. That doesn’t mean you shouldn’t review the work, just understand that you have limited options to remedy any dissatisfaction until the contract is up for renewal. The best review I know of is to pull out the management contract and assign a grade system for each of the functions that the Property Management firm is responsible for. Typically, that would include accounting and bookkeeping, customer service, and service to the Board. Additionally, many property management firms also handle interactions with vendors and contractors, and may even provide certain other property management services such as landscaping, snow and trash removal, handyman work, etc. While you may seek feedback from homeowners, the Property Manager works for the Board. The Board would be the appropriate group to review the work. Good luck!