As a property manager, I talk to a lot of condominium associations that are struggling with working with their management teams. Condo boards cannot put management on auto-pilot just because they have a management company doing most of the work, you have to stay on top of them to ensure there is effective management taking place.
Condo boards and property management companies must work together to ensure the smooth operation of a condominium community. Without it, the condominium will suffer, and the value for all residents will drop. Here are key ways they can effectively collaborate:
1. Clear Roles and Responsibilities
- Condo Board: Represents the interests of owners, sets policies, and makes major financial decisions.
- Property Management: Handles day-to-day operations, maintenance, and administration based on the board’s directives.
- Collaboration Tip: Create a written agreement or contract outlining responsibilities to avoid overlaps and confusion.
2. Open Communication
- Regular Meetings: Schedule regular meetings between the condo board and the property manager to review ongoing issues, budgets, and future plans.
- Reporting: The property manager should provide clear, regular reports on maintenance, finances, and projects.
- Collaboration Tip: Use communication platforms or software to document all conversations and decisions.
3. Financial Oversight
- Board Oversight: While the property management company handles day-to-day finances, the condo board should maintain oversight of the budget and approve major expenses.
- Transparency: Financial reports should be shared regularly, detailing income, expenses, and reserve fund status.
- Collaboration Tip: Consider a third-party audit of financial records periodically to ensure accuracy.
4. Problem Resolution
- Delegation: For routine issues like maintenance or complaints, the board should delegate to the property manager.
- Escalation: Major concerns or unresolved problems should be escalated to the board for decision-making.
- Collaboration Tip: Establish protocols for resolving common problems, like noise complaints or maintenance requests.
5. Compliance with Regulations
- Legal Advice: Property managers should stay updated on legal changes affecting condos (e.g., building codes, landlord-tenant laws) and advise the board accordingly.
- Enforcement: The property management company should enforce rules and policies as decided by the board, ensuring compliance with condo bylaws and state regulations.
- Collaboration Tip: Keep legal experts on hand for situations where interpretation of laws or policies is needed.
6. Long-Term Planning
- Maintenance Planning: Property managers can provide expert advice on maintenance schedules and reserve fund planning.
- Strategic Initiatives: The condo board and property management company should collaborate on long-term improvements and investments in the property.
- Collaboration Tip: Create a 5- to 10-year maintenance and capital improvement plan, with input from both parties.
7. Vendor Management
- Selecting Vendors: While the property management company may handle vendor relationships, the board should have input on selecting key vendors for major projects.
- Performance Reviews: Both the board and property manager should regularly assess vendor performance.
- Collaboration Tip: Include vendor selection and review in the regular meeting agenda.
8. Conflict Resolution
- Mediation: Disagreements between the board and property management company should be handled professionally, with a focus on finding common ground.
- Collaboration Tip: Use mediation or a neutral third party to resolve conflicts if needed.
Successful collaboration ensures that both the condo board and the property management company fulfill their duties efficiently, benefiting the condo owners and the property overall. Remember, it takes two to tango, and likewise both parties need to put in their part to make this a fruitful partnership.
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