K.I. from Manatee County, Florida writes:
Dear Mister Condo,
Can an owner start a management company and then be hired by the association as property manager? And keep the business address as the common building?
Mister Condo replies:
K.I., I can see you are concerned that the association may be improperly managed by an owner who decides to become a Property Manager. And to be further concerned that this Property Manager is now operating out of an association-owned building. While it is possible that you may want to keep an eye out on the situation, I haven’t heard anything illegal or untoward from what you have shared here. My first big question is whether or not the owner has become a certified Property Manager (required in Florida to function as a separate business) or is simply an employee of the association (may not require a license, in that case). My second big question is if the owner is the association’s Property Manager, how do they avoid the appearance of impropriety? I am not saying that the Property Manager is going to look out for his/her own interests before the interests of others but if it ever appears to be the case, how will the Board justify hiring an owner from within the association when there may have been many folks who do not own in the association who would do as good a job (or better since this person is brand new). Many associations simply don’t allow for their Property Manager to live or own within the association. In my opinion, that is the best policy but unless your by-laws forbid it, it may perfectly allowable. All the best!
3 thoughts on “Should an HOA Owner Be Hired to Manage the Property?”
Bad idea and here is why. I saw this happen in a Condominium and it went badly. The manager is supposed to take instructions from the board. However, the manager did not like an order she was given. So as a member of the association she starts and successfully does a recall of the board. Right or wrong the board’s authority should not be compromised in that manner. It’s a bad idea and I do not recommend it.
Our association has a property manager that owns a condo in the complex does this allow her to vote on any matters that concern the home owners being that she owns and also is the property manager, also we have been working for over a year to replace the property manager it has been very unsuccessful any information would be greatly appreciated. Thank you
R.G, all owners, regardless of occupation or business relationship to the association, are entitled to vote. However, if this Property Manager is also on the Board, that would be a conflict of interest seeing as the Property Manager reports directly to the Board. Replacing a Property Manager is not an easy task, especially if they are under contract and have not violated the contract. Waiting for the contract to expire and then not renewing it is the easiest way. If the Board feels that the Property Manager has broken the contract, the Board should speak with the association attorney to see if it is wise to terminate the Property Manager because it does open up the association to legal risk is the Property Manager pushes back and does not agree that the contract was broken. Good luck!