►
Description
Many homeowners associations require boards to enlist the services of a property management company to help manage the business of the HOA. The health of your organization is greatly impacted by how well the Board and the property management company co-exists. In this training, we will focus on how to establish and maintain a good relationship with a property management company. We’ll discuss what to consider before selecting a property management company. We’ll explore the roles and responsibilities of a property management company vs the board. We’ll learn how to review a property management contract and how to evaluate the performance of your property management company. Lastly, we’ll discuss how to appropriately end a relationship with a property management company.
A
Good
evening
my
name
is
nichelle
wilson
and
I
am
the
neighborhood
training
and
development
program
manager
with
the
city
of
charlotte
community
engagement
good
evening
good
evening.
Thank
you
all
for
joining
us
tonight.
We
are
joined
by
rocky
kavanaugh,
he's
an
attorney
with
hull
chandler
pa
and
provides
legal
services
to
nonprofits
and
public
charities.
B
B
Well
anyway,
I
obviously,
if
you
are
here
today,
you
are
interested
in
learning
more
about
your
hoa
board
and
either
its
current
relationship
with
a
property
management
company
or
a
future
relationship
with
a
future
property
management
company
or
the
same
property
management
company.
And
so
today's
topic
again
hoa
board
support
how
to
work
with
a
property
management
company.
B
It
is
it's
a
real
important
thing,
and
so
again,
the
purpose
of
this
presentation
is
provide
valuable
information
to
charlotte
area
hoa
residents,
who
are
either
new
to
an
hoa
board
or
a
nice
refresher.
For
those
of
you
who
have
been
on
a
on
on
hoa
board
and
again
the
framework
that
I
used
last
time.
The
useful
way
to
think
of
your
hoa
board
service
in
north
carolina
is
to
think
of
yourself
as
a
city
council,
member
for
a
private
neighborhood
government.
So
again
we
talked
about
it.
B
The
private
neighborhood
government
of
an
hoa,
usually
contracts
with
a
property
management
firm
to
manage
the
hoa.
Now
there
are
some
hoas
that
self-manage
just
like
there
are
many
towns
and
municipalities
in
the
state
of
north
carolina
where
the
mayor
of
that
of
that
town,
actually,
you
know,
does
a
lot
of
the
day-to-day
work
of
that
town,
but
usually
when
you
have
larger
municipalities
or
you
have,
or
in
hoa
many
of
you
have
jobs.
Many
of
you
have
you're
not
getting
paid
to
serve
on
your
hoa
board.
B
So
you're
not
going
to
be
able
to
spend
24
7.
You
know
the
nine
to
five
of
your
working
hours
on
the
business
of
the
hoa
so
typically
contracting
with
a
property
management.
Firm
is
typically
the
most
common
way
that
hoas
manage
the
private
neighborhood
government,
which
is
a
hoa
so
again
similar
to
the
relation
between
your
city
council,
your
city
manager.
B
B
The
hoa
is
the
principal,
so
many
agency
relationship,
employer
employee,
is
a
perfect
example
of
a
of
an
agency
relationship
because
they
are
your
agent
you're,
not
doing
it
yourself.
So
you
are
delegating
you're,
giving
agency
to
this
property
manager
to
do
the
day-to-day
work
of
your
community,
and
so
a
little
bit
about
that.
B
So
the
property
management
company
is
your
agent,
so
once
that
contract
is
signed
and
we're
going
to
go
into
contract
in
a
little
bit,
the
property
management
is
the
agent
for
the
homeowner
association,
so
you're
known
as
the
principal.
So
in
agency
law
you
have
the
principal,
which
is
the
hoa
managed
to
his
hoa
board,
and
you
have
the
agent
so
under
common
law.
So
I
kind
of
want
to
give
you
a
little
background.
There
are
some
basic
principles,
so
north
carolina
law
kind
of
codifies
this.
But
basically
this
is
the
common
law
about
your.
B
Your
relationship
with
your
property
management.
Is
that
that
agent,
that
property
management
company
owes
you
the
hoa
the
board,
a
duty
of
loyalty,
a
duty
of
obedience
and
a
duty
of
reasonable
care.
So
when
there
is
an
agency
relationship,
the
agent
owes
the
principal
these
duties.
So
what
does
loyalty
mean?
B
Loyalty
means
that
the
agent
must
act
in
the
best
interest
of
the
principal
and
must
avoid
secret
profits
and
other
conflicts
of
interest.
So
let's,
let's
pull
back
the
lens
on
that,
so
the
property
management
group
when
they
work
for
you
as
an
agent,
their
loyalty
should
be
to
you.
It
should
not
be
to
any
other
group
out
there,
whether
it's
their
friend,
who
is
a
landscaping
company
or
some
other.
You
know.
Another
party
out
there
under
the
common
law
is
that
their
duty
is
to
act
in
your
best
interest
right.
B
So
if
you
feel
like
they're,
not
acting
in
your
best
interest,
they're,
not
being
loyal
to
you,
that's
a
potential
flag,
we'll
talk
about
some
flags
later
obedience,
so
under
the
common
law,
obedience
means
that
the
agent
must
act
reasonably
within
the
set
of
instructions.
The
principle
provides,
so
there
should
not
be
any
tail
wagging
the
dog,
and
what
I
mean
by
that
is
the
principle
provides
the
instructions
to
the
agent.
B
It's
not
the
other
way
around.
Now
the
agent
can
provide
guidance
about
a
topic
that
the
principal
doesn't
know,
but
ultimately
the
principal
is
the
boss
and
the
agent
must
obey
whatever
the
principle
says,
within
the
set
of
instructions
so
anytime
that
the
agent
disobeys
the
instructions
of
the
principal
that's
an
issue,
and
the
final
duty
is
a
duty
of
reasonable
care.
That
means
that
the
agent
will
act
rationally
under
the
circumstances.
B
So
what
that
basically
mean
it's
it,
it's
basically
the
same
duty.
A
babysitter
has
reasonable
care.
If
you
entrust
a
a
a
a
a
babysitter
with
your
child,
when
you
go
off
to
what's
all
this
cove
is
over,
you
know
you
go
off
somewhere.
They'd
have
to
use
reasonable
care.
You
know
they
shouldn't
give
them
a.
You
know
a
fifth
of
whiskey
right,
I
mean
that's.
These
are
that
that
your
agent
will
act
rationally
under
the
circumstances.
B
B
So
you
see
here
it's
all
in
the
contract,
so
I
would
say
that
definitely
the
first
thing
that
if
you
don't
already
have
the
contract
sitting
in
front
of
you,
you
need
to
have
the
contract
that
if
you
have
an
existing
relationship
with
a
property
management
group,
now
you
can
have
a
contract
with
no
writing.
I
mean
there
are
people
who
still
just
do
handshake
deals
and
such,
but
you
know
from
a
legal
standpoint:
it's
usually
better
to
have
something
in
writing.
B
That
explains
the
the
important
terms
of
the
agreement
between
you
and
the
property
manager.
So
I
would
say
that
if
you
were
going
to
work
with
any
of
the
major
property
management
firms,
there's
no
way
that's
being
done
in
a
handshake.
There's
going
to
be
some
paper,
there's
going
to
be
some
signatures,
they're
going
to
be
probably
some
initializing
with
initials
on
different
pages,
but
it's
all
in
the
contract.
B
If
you
don't
do
this,
then
that
won't
happen.
Or
you
know
this
isn't
actually
included
in
in
the
this
would
be
an
additional
service.
That
would
be
an
additional
fee,
and
I
think
these
are
you
want
to
have
a
crystal
clear
understanding
and
most
of
the
contracts
that
I
have
seen
that
I've
reviewed
regarding
the
relationship
between
your
the
hoa
and
the
property
are
not
super
long
and
so
they're,
not
like
a
mortgage
agreement
or
something
like
that.
B
B
Private
law
that
you
should
have
counsel
review
that
before
you
sign
it,
but
if
you
have
already
signed
it
would
be
nice
to
have
it
explained
to
you
by
council
as
well
all
right,
so
my
second
disclaimer,
so
I
had
the
first
disclaimer
from
here's,
a
sql
disclaimer.
So
what
we're
about
to
do
is
we're
going
to
review
common
parts
of
a
typical
contract
between
an
hoa
and
a
property
management
company
in
this
presentation.
B
Now
some
of
these
terms
might
not
be
in
your
actual
agreement.
So
if
something
comes
up
and
you're
got
your
contract
you're
looking
and
says,
I
don't
see
anything
about
that.
Some
of
these
terms-
I'm
talking
about,
may
not
actually
be
in
your
agreement
and
there
could
obviously,
by
vice
versa.
There
will
be
things
I'm
talking
about
that
aren't
covered
in
your
agreement,
the
goal,
so
the
goal
is
that
it's
not
so
there's
no
one
uniform
property
management
contract.
So
that's
it's!
There
isn't
something
like
that.
B
So
in
a
typical
hoa
contract,
there
are
some
duties
that
the
property
management
must
fulfill
for
the
hoa.
So
here's
some
things
that
that
are
common
attending
hoa
board
meetings
and
hoa
annual
meetings.
So
obviously
part
of
the
deal
is
that
they
will
be
in
attendance
at
these
very
important
meetings.
Many
property
managements
will
even
assist
you
with
preparing
an
agenda
for
board
and
annual
meetings.
So
that's
kind
of
nice.
B
Another
is
providing
the
hoa
board
with
a
management
report,
informing
the
board
of
management
acts
and
decisions
since
the
prior
board
meetings.
So
this
is
that
again.
This
is
that
part
of
that
agency
right,
because,
if
I'm
the
principal
and
my
and
we
in
the
last
training,
you
know
you
learned
that
it
is
the
hoa
and
hoa's
board
to
manage
those
common
areas
and
take
care
of
the
landscaping
and
to
enforce
the
the
ccrs
and
the
bylaws.
B
But
you
can't
do
that
every
day
in
your
perfect
personal
life,
so
you
have
to
hire
somebody.
So
it
is
important
for
this
agent
to
re
report
to
you
as
principal
about
what
acts
they
have
done
and
decisions
they
have
made.
You
know
in
the
interim
between
your
meetings,
because
again
you
are
a
non-profit
organization,
as
we
learned
in
the
last
training,
and
so
actions
have
to
be
kept
in
a
record.
You
know
a
corporate
body
can't
just
act.
B
It
has
to
act
through
resolutions
through
motions
and
and
seconds
and
votes,
and
I
think
that
we-
and
we
talked
about
that
in
the
last
training.
So
if
you
want
to
go
back
and
see
a
little
bit
about
corporate
formalities
as
far
as
being
operating
as
a
non-profit
check
the
last
training
out-
and
I
think
I
did
see
something
in
the
q
a
just
pop
up-
but
I
don't
know
michelle
if
this
is
a
time
to
kind
of
take
questions.
Or
should
I
wait
till
the
end.
B
All
right:
well,
let's
see
it
seem
contemporaneous
I'll,
let's,
let's
try
popping
opening
so
okay,
so
I
got
a
question
here:
ask
if
you
were
changing
board
members
due
to
the
term
being
up.
Are
you
to
sign
a
new
contract
also
if,
when
the
board
changes,
should
the
contract
be
discussed
and
provided
when
changes
take
place
so
the
first
part
there
it's
very
rare
for
a
contract
to
hinge
upon.
You
know
upon
whether
the
the
board
is
the
same
that
signed
it.
B
It's
very
rare
that
if
somebody
was
different
on
the
board
that
that
would
necessitate
a
new
contract
having
to
be
signed,
the
the
term
that's
going
to
be
more
important
and
we'll
talk
about
that
in
your
contract
is
the
term
of
the
contract
itself,
whether
it's
one
year,
two
year,
three
years
versus
the
term
of
your
board.
Member
now
I
mean
I'm
not
saying
that
you
couldn't
theoretically
contract
that
with
a
property
management
group,
but
most
of
them
would
probably
not
be
interested
or
at
least
push
back
on.
B
I
think
it's
a
good
idea
for
a
board
to
review
its
relationship
with
the
property
management
organization,
because
again
the
city
council
periodically
reviews
its
relation.
It
gives
job
performance
reviews
right.
So
your
city
council,
your
city
manager,
you
know,
performs
all
the
duties
and
you
know
is-
is
michelle's
boss,
you
know
and
and
oversees
you
know
every
different
department
in
the
city.
B
B
You
should
at
least
evaluate
the
relationship
periodically
to
determine
whether
you
know
your
needs
are
being
met
and
if
they
are
as
an
agent
fulfilling
what
you
as
a
board
want
from
your
your
property
management.
So
so
I
do
think
that
that
and
that's
good.
The
one
difference,
obviously,
is
that
and
we'll
talk
about
when
we
talk
about
terminating
a
contract.
Is
that
usually,
when
it's
you
know
like
with
the
city
man,
you
know
the?
While
they
do
have
contract
rights?
B
If
you
wanted
to
terminate
that
agreement,
we'll
talk
a
little
bit
about
that,
because
usually
the
agreement
that
you
get
is
written
by
the
property
management
group
because
they
tend
to
be
the
more
typically
sophisticated
party
because
they're
the
ones
who
have
the
paperwork
and
they're
the
ones
that
hand
it
to
you,
and
usually
you
just
sign
it
based
on
the
terms
that
they
have
put
in
so
and
never
mind
that
that's
a
doorbell.
Sorry
all
right!
B
Let's
continue
here
with
some
of
the
other
typical
duties,
so
I
think
some
of
the
things
you
see
here
assisting
the
board
with
administering
provisions
of
the
ccr
as
we
talked
about
those
in
the
last
training,
bylaws
policies
and
procedures,
the
hoa.
So
that's
a
good
thing
right.
You
know
you
can't
you're
working
it's
good
to
have
this
group
that
does
this.
A
B
Maybe
it's
a
time
to
change
the
pool
policy
or
something
like
that,
so
the
property
management-
some
of
them,
will
do
that
now.
Here's
an
important
one
that
property
management
groups
should
do
is
reporting
to
the
board
any
violations
of
the
hoa
rules,
regulations,
ccr's,
bylaws
and
then
taking
action
per
board
directive.
So
you
see
some
of
those
duties.
B
I
talked
about
between
the
principal
and
the
agent
here
right,
so
one
is
a
duty
of
care
right,
because
what
is
rational
in
the
under
the
circumstances
is
that
if
the
property
manager
notices
that
some
owner-
or
you
know-
maybe
there's
too
many
cars
parked
in
the
thing-
is
clogging
up
traffic
that
that
needs
to
be
reported
to
the
board.
But
then,
if
the
board
says
well,
you
need
to
enforce
it.
They
need
to
do
what
the
board
says.
That's
that
duty
of
obedience
that
is
between
the
agent
and
the
principal.
B
So
so
that's
something
I'm
sure.
Many
people
don't
like
this
particular
duty
that
the
property
management
does.
But
that's
that's,
that's
one
of
the
things,
a
typical
duty
that
can
be
found
in
the
contract.
If
you
find
out
that
your
property
manager
isn't
reporting
things,
and
that
could
be
an
issue
on
here
sure,
okay,
other
duties,
so
here's
an
important
one,
because
I
think
in
the
last
training
we
did
say
that
hoas
do
have
responsibility
to
procure
insurance
under
north
carolina
law.
B
So
one
of
the
things
that
your
property
management
group
should
be
able
to
do
is
assist
you
with
selecting
and
procuring
insurance
policies.
Of
course,
these
are
at
your
at
the
hoas
expense.
They
are
not
going
to
pay
it
to
comply
with
the
north
carolina
hoa
law
when
they
do
this,
the
property
management
group.
If
they
are
providing
some
assistance
in
this
realm,
they
typically
will
disclaim
liability
for
the
adequacy
of
coverage
chosen.
B
What
that
means
is
that
it,
you
know
so
they'll
help
you
but
they're,
not
going
to
say
that
they're
experts
at
picking
insurance,
so
my
tip,
is
it's
really
important
and
usually
it's
your
property
manager,
who's
going
to
go
and
and
do
this
procurement.
But
I
do
think
that
one
of
the
questions
you
should
ask
the
property
manager
about
whoever
they're
selecting
to
get
insurance
is.
B
Who
is
the
insurance
broker
and
do
they
have
experience?
Writing
hoa
policies?
Writing
hoa.
You
know
insurance
policies
because
one
of
the
things
that
and
that
with
with
insurance
is
you
don't
have
time
to
read
every
policy
that's
put
in
front
of
you
and
it
a
lot
of
times
in
the
real
world,
your
relation
with
your
insurance
broker
and
who
your
broker
is
and
how
experienced
that
broker
is,
and
if
they
have
a
lot
of
experience,
writing
policies
into
hoa
space.
B
That's
a
good
thing
because
they
will
have
a
better
idea
based
on
who
they
have
served
and
what
they
have
seen
when
things
have
happened
that
they
will
say.
Well,
I
think
that
you
definitely
need
a
commercial
general
liability
policy.
You
need
some
property
policy
on
the
common
areas.
You
probably
need
some
director
and
officer
insurance
to
protect
you,
the
policy.
B
B
Another
thing
is
typically:
the
property
management
group
will
provide
a
response
service
to
communications
from
homeowner
members
of
the
hoa,
so
obviously
you're,
not
the
only
ones
in
the
hoa
and
if
something
happens,
particularly
with
the
common
areas
or
you
know
just
there
to
kind
of
tell
them
that
this
is
not
something
that
the
hoa
is
responsible
for.
So
if
somebody's
new
in
the
hoa
community-
and
maybe
they
lived
in
apartments
all
their
life
and
somehow
they
move
it
and
they're
saying
hey,
you
know
my
place
is
flooding
it's
like.
B
You
know,
but
I
my
advice
would
be
to
make
sure
that
they
actually
put
down
something
more
specific,
something
something
more
like
within
24
or
48
hours,
upon
a
a
request
for
service
by
one
of
the
members
of
the
hoa
that
the
property
management
will
will
get
a
turnaround
time.
So
obviously
you
should
have
the
turnaround
time
in
writing,
but
try
to
get
it
specific,
because
if
you
have
something
that
just
says
timely
manner
or
in
a
reasonable
time,
nobody
really
knows
what.
That
means
I
mean.
B
Maybe
a
week
would
probably
or
a
year
would
definitely
be
unreasonable.
But
you
also
want
to
use
this
as
an
opportunity
to
try
to
get
the
best
service
for
not.
You
know
for
the
all
the
members
of
the
hoa
community,
because
ultimately,
that's
who
you're
you're
looking
out
for
that's,
who
you're
trying
to
get
the
best
for
another
duty,
that
the
property
management
group
should
should
typically
do
founding
contract
is
maintain
the
hoa
roster
of
home
owner
members
and
tenants.
If
there
are
any
tenants,
you
know
because
sometimes
you've
got
folks.
B
Who've
moved
out
and
they're
renting
out
the
property
and
making
a
roster
that's
available
to
the
hoa
board,
because
I
think,
that's
always
good
to
know
who's
in
the
neighborhood
and
so
that
that's
something
that
they
should
be
doing
for
you
other
typical
duties
that
property
management
must
fulfill
for
the
hoa
if
you
found
a
contract,
keeping
your
corporate
record
book.
So
in
the
last
training,
I
talk
about
the
importance
of
corporate
formalities.
B
Having
your
minutes
and
all
of
your
important
documents,
usually
in
a
binder
or
a
book,
many
property
management
groups
will
take
on
that
responsibility.
They
will
keep
all
the
corporate
records.
They
will
keep
the
minutes
and
organize
and
they'll
keep
all
the
important
contracts
that
the
hoa
has
entered
into.
They'll
keep
the
financial
reports
because
they
are
handling
the
money
in
chronological
order.
The
one
thing
they
usually
don't
do
is
they
don't
agree
to
take
minutes
of
the
meeting,
and
so
typically
that
falls
upon.
Whoever
is
the
secretary
of
the
board
to
take
minutes.
B
Usually
I
mean
I
think
you
could
technically
contract
for
that,
but
you
know
I
probably
better
off.
You
know
most
of
these
folks
are
probably
not
trained
in
you
know,
taking
you
know,
taking
corporate
minutes
and
probably
better
to
just
keep
that
one
in
house
anyway,
but
but
that's
typically
one
of
the
duties
that
many
property
management
groups
should
do
again
returning
so
returning
the
corporate
book
to
the
hoa
board
upon
request
or
upon
termination
of
the
agreement.
B
B
Another
duty
that
property
management
groups
should
do
is
keeping
the
hoa
board
apprised
of
general
correspondents,
so
any
letters,
whether
good
or
bad
right.
So
if
you
get
some
letter
from
the
city
or
the
county,
or
something
saying
that
there's
some
kind
of
nuisance
or
something
going
on
there,
you
need
to
have
a
copy
of
that.
You
need
to
get
notice
of
that,
so
so
the
hoa.
So
sometimes
they
provide
duties
where
they'll
keep
all
of
the
correspondence
that
is
written
to
the
hoa
board.
B
Letters
with
members,
any
letters
that
they
wrote
to
homeowners,
saying:
hey,
you
know:
you've
got
a
car
on
the
lawn
and
you're
not
supposed
to
have
a
car
on
the
lawn
or
letters
with
vendors
or
contracts
and
providing
any
originals
to
the
hoa
board
upon
request.
So
if
you,
if
your
property
management
group
is
doing,
is,
is
at
least
this
contract
and
they're
doing
the
right
thing.
They'll
have
a
record
of
all
communication.
B
So,
if
you're
on
the
board-
and
you
want
to
do
your
duties
of
care
as
a
fiduciary
of
the
non-profit-
you
should
be
able
to
get
copies
of
any
general
correspondence.
I
mean
I'm
sure
they
probably
chuck
in
junk
mail.
You
know
like
who
gets
another
you're
gonna
sign
up
for
a
new
visa
credit
card
or
something
like
that,
but
you
know
substantive
correspondence.
B
Obviously
you
may
want
to
see
what
did
you
say
to
homeowner
x
or
what
was
the
communication
with
they
say
back,
you
know,
and
it
should
also
include
emails
as
well,
because
again
they
work
for
you.
They
are
your
agent,
so
it
would
be
key
to
know
what
they
are
actually
telling
members
of
the
homeowner's
community
in
your
name.
In
many
respects,
I
think
that's
that's
sort
of
that.
You
know
that's
an
important
thing
and
other
typical
duties
that
property
management
must
fulfill.
B
Maine
is
a
common
area,
so
you
see
the
sort
of
like
excavator
here
and
the
property
manager
typically
contracts
on
behalf
of
the
hoa
with
contractors
to
maintain
the
common
areas
to
do
the
landscaping.
You
know
when
you
see
the
folks
out
there
bowling
and
trimming
and
all
this
other
stuff.
What
I
will
say
is
try
to
is
is
one
thing
you
can
do
to
kind
of
get
a
little
quality
control
is
to
make
sure
to
inquire
how
the
property
manager
seeks
contract.
Now
sometimes
this
is
in
the
contract.
B
Some
contracts
will
the
property
management
will
say
we
create
what
we
call
an
rfp
and
we
put
it
out
to
bid
for
the
work
for
the
landscaping
and
we
will.
We
won't
make
a
decision
until
we
at
least
get
three
bids
and
we'll
compare
the
bids
and
then
we'll
bring
it
to
the
board
and
the
board
will
decide
which
is
the
best
bid,
based
on
what
we've
done
and
usually
when
you
go
out
to
bid
you'll
come
back
with
a
higher
quality,
lower
cost
I
mean
the
city.
B
Doesn't
you
know
if
you
ask
procurement
with
the
city?
They
you
know
you
they
don't
just
I'd
like
so
and
so
down
the
street.
We're
gonna
do
that:
no,
they
they
put
everything
out
the
bid,
and
so
I
think,
if
you're
thinking
of
yourself,
similarly
to
a
city
council,
any
of
your
important
agreements
should
should
go
out
to
bid
to
find
out
the
you
know.
The
cost.
B
I
mean
now
cost
isn't
everything
in
my
experience,
but
I
think
that
you
know
that
it's
it's
easier
to
kind
of
do
a
nice
apples
to
apples
comparison,
but
you
know
if
the
property
manager
is
sort
of
like
well.
We
have
some
preferred
partners
that
we
use
and
we'll
just
go
to
them.
I
mean,
maybe
that's
good,
but
you
know
you
don't
know
if
that's
the
lowest
and
the
most
quality.
B
B
That's
that's
huge,
then
again
many
duties
of
loyalty
and
obedience
and
care
when
it
comes
to
that
and,
of
course,
assisting
with
the
architectural
review
committee
of
the
hoa.
So
you
know
if,
if
your
organizat,
if
your
hoa
does
have
that
sort
of
committee-
and
you
know,
does
need
to
know
what
a
homeowner
wants
to
do
with
their
house,
then
you
know
they
can
assist
with
that
as
well.
So
those
are
so.
Those
are
some
typical
terms
there.
B
So
I'm
saying
here
it's
you
should
not
enter,
or
at
least
try
to
avoid
entering
an
agreement
with
a
property
managed
firm
that
hasn't
bonded
the
employees
working
with
you
and
at
least
in
an
amount-
that's
at
least
three
months
of
assessments,
and
why
is
that?
Because
these
books
are
handling
your
money
right?
You
know
if
the
money
is
coming.
B
You
know
from
all
your
homeowner
members
and
it's
coming
to
this
party
again,
if
the,
if
it's
their
staff,
member
and
somehow
they
steal
the
money,
they
lose
the
money
that
the
bond
will
ensure
that
you
know
you
will
receive
that
money.
You
know
I
mean
I
know,
that's
you
know
you
can
have
I
mean?
Maybe
they
have
a
fat
bank
account,
they
can
pay
you,
but
it's
always
nice
to
know.
B
They've
got
a
bond
and
that
whoever
their
whoever
is
touching,
your
money
is
bonded,
and
so
that's
a
nice
term
to
look
for
if
you've,
if
you
can,
if
it's
in
your
contract,
currently
that's
great
and
in
your
next
contract,
it
may
be
something
you
might
want
to
negotiate
for,
because
you
just
you,
definitely
you
don't
want
to
get
in
a
situation
where
it's
like.
Well,
we'll
get
it
back
to
you.
B
We're
sorry,
we're
sorry
we'll
get
back
to
you
and
then
you
end
up
having
to
maybe
sue
them
in
small
claims
court
or
something
or
something
like
that.
If
they
got
a
bond,
they
can
easily
just
go
and
get
you
that
money.
If
something
you
know
and
again,
it's
like
that's
on
them
to
control
their
people,
but
you
know
you
want
to
you
know
you
want
to
make
sure
that
that
folks,
who
are
touching
your
money,
are
bonded.
B
If
you
can
is
there
might
be
a
liquidated
damages
or
penalties
for
early
termination
by
the
hoa
it's
kind
of
similar.
What
you
might
find
in
a
when?
Maybe
when
you
guys
are
renting,
you
know
there,
some
of
the
landlords
will
property
management
companies
will
have
you
know
if
you
break
your
lease
early,
you
have
to
pay
x
amount
of
dollars
to
exit
your
lease,
so
what
liquidated
damages
is.
Basically,
if
you
have
a
three
year
term
with
your
property
management
company-
and
you
want
to
leave-
I
mean
you
can
leave
with.
B
If
you
have
cause
like
if
they're
stealing
the
money.
Okay,
then
that's
different,
you
know
that's
a
different
thing,
but
if
you
just
wanted
to
leave
for
whatever
reason
and
they're,
not
at
fault
they're,
they
don't
have
anything.
Then
you
probably
have
to
pay
the
the
penalties.
Try
to
avoid
any
kind
of
language.
That
says
that
you
know
that
if
you
do
break
the
contract
early,
that
you
have
to
pay
a
penalty
fee,
an
early
termination
fee,
I
do
think
it's
probably
more
reasonable.
B
If
you
want
to
get
out
of
the
contract
and
of
course
you
know,
you
kind
of
figure
out
what
you're
going
to
do
once
they
leave
and
and
figure
out
a
transition,
because
you
know
once
you
terminate
you
know,
you
need
to
make
sure
you
get
all
your
stuff
back.
Like
a
breakup,
you
want
to
make
sure
that
you
get
all
the
things
that
that
you
are
entitled
to
so
you
kind
of
have
to
if
you
are
thinking
about
breaking
your
agreement.
B
One
thing
to
kind
of
start
thinking
about
is:
what
did
they
have
of
yours?
You
know
asides
from
the
money
or
at
least
access
to
the
money
that
you
need
to
get
back,
so
maybe
that
corporate
minute
book
correspondence
all
you
know
all
of
these
things.
They
need
to
return
that
to
you.
If
you
are
to
terminate
the
other
term,
I
look
for
after
I
look
at
the
term.
B
I
look
at
the
payment
terms
right
so
usually
there's
a
section
that
says
how
much
the
hoa
has
to
pay
many
agreements,
sometimes
it's
monthly.
Sometimes
it's
annually
and
typically
the
hoa
agreement
has
a
base
management
fee
that
corresponds
to
a
list
of
services.
So
all
those
things
I
talked
about
a
few
minutes
ago,
usually
what
you
want
to
make
sure
is
make
sure
to
ask
how
much
the
management
company
charges
for
additional
services
not
listed.
B
So
some
of
those
and
we'll
talk
about
that
in
a
little
bit,
usually
things
such
as
legal
services
or
the
cost
of
paper
and
mailing
out
like
notices
and
things
you
may
get
a
invoice
for
okay,
so
here's
our
base
fee
and
then
but
you
wanted
us
to
get
a
lawyer.
So
here's
our
fee
for
getting
you,
the
lawyer
and
here's
a
fee
for
all
the
paper
that
we
expended
and
the
postage
and
things
they
may
put
that
back
on
you.
B
Another
term
to
look
for
is
liability
and
indemnification,
so
basically,
sometimes
this
is
called
a
hold
harmless.
You
might
see
that
in
your
agreement,
this
particular
clause,
it
protects
the
management
company,
so
this
is
something
they
usually
push
for.
So
it's
very
rare
that
I
mean
the
property
that
the
hoa
can
get
the
property
managed
to
indemnify
them.
You
know
to
indemnify
the
hoa
it's
usually.
B
The
property
management
will
insist
in
these
agreements
that
the
hoa
indemnifies,
the
property
management
for
any
kind
of
harms
or
accidents
or
something
they
may
cause
that
harm
either
some
member
or
you
know
someone
in
the
or
or
a
third
party.
So
sometimes
you
look
at
these
agreements
and
it
may
say,
we'll
indemnify.
B
You
know
the
hoa
agrees
to
indemnify
the
property
manager,
so
the
property
management
may
what
if
the
property
manager
drives
into
the
neighborhood
and
hit
somebody's
car,
you
know
they'll
say:
oh,
you
said
to
indemnify
it,
so
your
insurance
needs
to
take
care
of
of
us,
and
so
you
want
to
be.
You
know
you
got
to
be
kind
of.
This
is
one
where
this
may
be
something
that
you
may
want
to
try
to
negotiate
out
of
of
the
agreement,
because
you
know
most
of
these
groups
have
their
own
insurance
right.
B
So
you
know
if
the
property
management
company
person
hit
somebody
with
a
car,
you
know
outside
of
your
property,
then
their
insurance
would
cover
it,
but
somehow
magically
when
they
come
on
to
your
premises.
This
contract
is
saying
that
you
will
expend
the
resources
to
defend
them
against.
You
know
the
harm
party,
so
so
I
think
that
this
is
a
clause
that
should
be
reviewed
with
counsel,
to
determine
if
the
property
management
is
shifting
too
much
risk
on
to
the
hoa,
because
again
these
guys
do
have
their
own
commercial
general
liability
insurance.
B
They
have
their
own,
auto
insurance.
So
again
it's
like
that
might
be
something
to
say.
Well
that
might
you
know
you
have
your
own
insurance?
Maybe
we
should
say:
if
there's
a
wreck,
you
go
to
your
insurance
and
you
know
first
and
not
you
don't
try
to
make
us
cover
your
insurance
now,
if
it's
not
negotiable
and
somehow
you're
in
a
situation
that
this
is
the
best
ho
hoa
property
management
group
in
the
history
of
mankind.
B
B
B
They
may
refer
you
to
an
attorney.
They
may
have
some
kind
of
connection
to
an
attorney
that
they
will.
They
will
refer
you
to,
but
ultimately
those
costs
usually
fall
upon
the
hoa
now
many
times
the
property
management
firm
will
have
it
in
the
agreement
that
they
serve
as
a
liaison
and
that
they
should
be
included
as
the
client
for
returning
client
privilege
purposes,
and
this
is
probably
a
good
thing
because
should
there
be,
you
know,
should
there
be
some
sort
of
suit?
B
And
you
know
the
attorney
is
like
talking
to
both
you
and
the
manager.
Those
conversations
should
be
protected
because
all
of
you
are
considered
the
client
to
the
attorney,
because
the
attorney
doesn't
have
to
talk
about
can
keep
everything
confidential.
If
it's
not
confidential,
then
obviously
the
attorney
is
a.
He
could
be
asked
about
it.
B
So
knowing
what
the
hoa
is
responsible
for,
so
the
management
will
not
do
everything
for
the
hoa.
So
in
most
cases
you
will
retain
some
responsibilities
so
just
as
important
of
knowing
what
they
have
to
do.
It's
early
just
important
what
you
must
do
to
have
a
common
understanding
about
expectations
of
your
relationship,
so
so
before
I
go
into
this,
what
the
red
flags
and
how
to
vet
a
new
contract
with
your
new
property
management,
do
you
have
any
questions
about?
What's
going
on?
B
You
know
what,
with
the
type
of
current
type
of
agreement
that
you
have
before
we
go
into
sort
of
when
it's
going
bad
and
then
how
to
get
a
new
anything
right
now
about
any
questions
about
what
we
have
covered
here
so
far,
I'm
looking
at
it
yeah!
I
don't
see
anything
all
right.
Well,
if
you
have
a
question,
we'll
still
have
another
q
a
session.
You
know
after
this
all
right
now.
B
So
here
are
some
signs
that
hoa
board
may
want
to
consider
new
management,
so
poor
communication
between
the
hoa
board
and
the
property
management,
and
that
can
include
you
know
just
disrespect
that
could
include
just
not
telling
you
they're
doing
things
or
at
meetings.
You
know
not
reporting
to
you
things
they
did
in
your
name.
You
know
things
like
that:
inability
to
complete
projects
or
a
lack
of
follow-through,
here's,
a
big
one,
lack
of
financial
accountability
and
transparency,
so
you're
asking
for
the
financials
they're,
not
giving
it
to
you.
B
B
Maybe
they
have
some
strange
administrative
fee,
and
these
are
things
that
you
may
not
have
knew
or
understood,
and
so
the
the
amount
that
they
are
taking
from
the
you
know
from
the
from
the
from
the
assessments
or
something
may
not
be
clear:
another
real
flag,
high
turnover
rate
for
managers,
you
get
a
new
person
almost
every
other
week
or
something
like
that.
You're
working
with
a
new
person,
that's
kind
of
a
sign
that
maybe
they
aren't
treating
their
folks
right.
B
And
you
know
that's
not
a
good
thing,
because
you
know
you
have
a
manager
and
usually
you
build
up.
They
have
a
certain
amount
of
institutional
knowledge
of
your
community
and
it's
kind
of
a
pain
to
kind
of
have
to
talk
to
or
deal
with
a
new
person
every
other
month,
and
so
that's
usually
a
sign
that
the
organization
may
be
somewhat
dysfunctional.
B
If
you
seem
to
have
a
new
liaison
every,
like
I
said
every
other
month
or
so,
and
then
another
flag
is
like
outdated
processes
and
technologies.
You
know
if
they're
sort
of
just
doing
everything
by
paper.
You
know
if
it's,
if
they
don't
have
the
ability
for
homeowners
to
communicate
by
electronic
or
pay
via.
You
know
like
on
online
screen
or
something
like
that.
B
Here's
some
tips
about
what
to
do
and
what
to
ask,
because
I
think
that
the
whole
board
really
should
take
a
real
keen
interest
in
vetting
any
new
hoa
management
and
obviously,
if
it's,
if
you're
going
for
new
management,
you
probably
have
the
experience
of
dealing
with
old
management,
but
some
tips
get
referrals
from
other
hoa.
So
many
of
you
are
in
the
city
can
also
you
know
they
have
a
list
of
folks
who
you
can
you
can
talk
to,
they
can
give
you
emails
about
other
management
firms
and
their
experiences.
B
Here's
some
questions
you
could
ask
so
one
is
to
ask:
does
the
property
management
have
any
affiliation
with
any
other
companies,
because
if
so,
they
might
be
steering
you
to
use
certain
vendors?
They
own
now
that
would
be
a
violation
of
that
duty
of
loyalty.
Remember
the
whole
agent
principle
right,
but
you
also
kind
of
want
to
know
that
they're
they're,
you
know,
because
again
you
can't
really
procure
and
get
three
bids
if
you're
sort
of
steering
the
hoa
to
another
vendor
and
a
lot
of
times,
it's
a
vendor
that
they
own.
B
Now
you
may
see
in
your
contract.
There
might
be
a
disclosure
where
they
state
that
we
may
own
other
companies,
and
we
may
you
know
utilize
them,
and
I
think
that
would
be
something
that
you
may
want
to
ask
some
questions
about
and
say
you
know,
I'm
you
know
I.
I
would
prefer
that
you
go
out
to
bid
on
other
vendors.
I
don't
want
to
go
to
a
vendor
that
you
own,
because
I
mean
I
know
it
makes
it
easier
for
you,
but
that
may
not
necessarily
be
the
best
deal
for
us.
B
Another
question:
what
does
the
property
management
counting
system
look
like
at
bare
minimum?
They
should
at
least
say
we
use
quickbooks
it
better,
not
be
well.
I
just
got
some
cash
and
I
got
a
calculator
and
you
know
then
I
you
know
I
just
write
it
out
on
a
on
a
legal
pad,
and
you
know
you
gotta
have
some.
You
gotta
be
able
to
spit
out
some
reports
and
quickbooks
at
least
does
that.
B
So,
if,
before
you
sign
on,
you
should
ask
for
maybe
a
sample
budget
report
that
they
would
give
a
client
or
give
to
a
a
an
hoa.
So
you
can
kind
of
see.
Is
it
in
a
form
that
makes
sense?
You
know?
What's
your
work
product
look
like,
and
I
think
that
you
know
you
may
be
able
to
get
a
sample
budget
report
from
one
of
the
other
hoas,
that
of
a
group
that
you're
you're
searching
for
as
well.
B
But
you
know
you
can't
that
that
kind
of
goes
into
sort
of
that
antiquated
systems
thing
so
where
you
know
where
I
said
the
flag
is
that
they're
using
automotive
processes,
if
they
don't
have
at
least
something
like
a
quickbooks
system
to
do
to
manage
your
accounting?
Then
that's
you
know
again.
If
they're
just
like
you
know,
I
got
my.
I
got
my
right.
B
B
So
other
questions
that
you
may
want
to
ask
who's
in
charge
of
the
books
with
the
property
management.
So
do
they
use
a
cpa
or
do
they
have
an
accountant?
That's
real
important.
You
know,
because
someone
who's,
a
cpa
obviously
is
is,
is
a
credentialed
accountant,
certified
public
accountant
if
they
have
someone
who
at
least
who
who
is
their
accountant?
Who
is
taking
care
of
those
books?
You
know
if
it's
some
sort
of
fly
by
night
group.
B
You
know
you
could
just
be
like
well,
this
is
so
and
so
and
and
they're
doing
our
books,
and
I
mean
it's
it's
I
I
think
that
the
more
credentialed
they
are
now
they
may
charge
more
because
they
might
be
more
credentialed.
But
you
know
you
do
want
to
know
who's
who's
handling,
the
books
and
it
kind
of
plays
along
with
that
question
of
what
kind
of
system
do
they
have,
because
there
can
be
some
friction
when
you
know
when
you
know
I
put
this
way.
B
You
know
when
you,
when
you're
doing
your
personal
banking
and
you
go
online.
If
you,
you
know
you
go
online
and
you
look
at
your
account.
You
see
what
you
see,
maybe
sometimes
you
don't
like
what
you
see,
but
you
see
what
you
see
right,
it's
in
in
real
time.
You
need
to
at
least
know
that
when
you
want
to
see
what
the
current
status
of
the
finances
of
the
hoa
are,
that
property
management
can
point
to
you
pull
out
a
report,
send
it
to
you,
I
mean
almost
immediately.
So
that's
that's
real
key.
B
Some
other
questions
might
be
what
type
of
preventative
maintenance
programs
that
they
have
in
place.
You
know
if,
if,
if
they're,
just
consistently
fixing
stuff
but
they're,
not
giving
you
tips
on
how
to
avoid
fixing
stuff,
you
know
that's
a
good
property
manager
when
they're
saying
well,
you
know,
if
you
know,
if
you
have
some
common
areas,
here's
some
things
you
can
do
to
make
sure
that
you
get
more
life
out
of
it.
B
So
I
think
I
see
a
question
here
in
the
chat.
Let
me
see
if
I
oh
I
see
so
where
can
you
find
the
rating
when
searching
for
a
new
hoa
management
company?
So
I
don't
know
if
there
I
mean.
I
know
that
there's
stuff
like
yelp
and,
like
other
you
know,
there's
some
internet
rating
things.
I
know
google
will
have
a
business
rating.
My
advice
would
be
talk
to
other
hoas.
B
I
think
that's
a
rating
is
a
good
thing
that
that
that's
quick
shorthand
but
treat
it
like
you're
the
employer,
and
you
want
to
hire
somebody.
You
know
nobody
walks
around
this
way
with
a
rating,
but
you
always
want
to
ask
who's
employed
them
before
and
what
kind
of
employee
they
were,
and
I
think
the
same
perspective
that
talking
to
other
hoa
so
get
a
list
of
references
right
when
you
apply
for
a
job,
you
gotta
write
down
three
people
that
know
you
now.
B
Usually
you
put
down
three
people
who,
like
you,
but
you
know
you
know.
I
think
that
at
least
at
some
level
you're
doing
your
due
diligence
to
try
to
find
out
more
about
the
person
and
again
you
know
if
you're
having
a
more
informal
network
and
again
the
city
can
help.
You
know,
give
you
a
list
of
other
hoas.
B
What
didn't
work-
and
some
of
them
may
still
may
already
be
working
with
that
group
and
they
may
love
that
property
management
company,
that's
kind
of
what
you
want
to
find
out
and
then
another
good
question
is
hold
on.
I
think
I
see
another
question
here,
good
question
here:
how
many
properties
should
an
account
manager
be
assigned?
We
are
a
coa,
so
we
require
okay,
condos,
okay
require
more
than
an
inch
away.
That's
a
good
question.
B
I
I
that
that
I
don't
necessarily
have
a
have
an
answer
for,
but
I
think
that
asking
a
question
how
many
properties
will
be
assigned
man
assigned
manager,
be
assigned
at
one
time
and
will
be
notified
if
that
number
increases,
I
mean
I'm
thinking
about
just
I
would
say
like
in
in
law.
You
know
you're
gonna
have
x
amount
of
clients
at
at
one
time.
B
I
you
know
and
don't
hold
me
to
this,
but
my
my
suspicion
would
be
if
it's
in
the
single
digits,
that's
great
and
if
it's
beyond
single
digits,
not
so
great
now,
maybe
that
this
is
an
imperfect
marker
but
less
you
know
the
less
properties
that
they're
assigned
in
theory.
That
means
that's
more
time
that
they
can
devote
to
you.
So
I
think
that's
that
that
would
be
something
to
ask.
As
you
start
to
ask
around
some
say:
well,
we
don't
let
our
property
manage
run
with
more
than
20..
Okay
right.
B
B
Property
management
groups,
but
my
suspicion
is
that
they
would
want
to
assign
as
many
properties
to
any
manager
that
they
could
get
away
with
both
with
the
manager,
because,
maybe
that's
why
there's
high
turnover,
because
they
got
too
many
properties
to
manage
and
they're
going
crazy
with
it
and
what
a
hoa
thinks
is
appropriate.
Because,
again,
you
know
it's
like
when
you're
in
a
restaurant
you
can
kind
of
tell
when
the
the,
when
the
wait
staff's
got
way
too
many
people
because
you're,
you
know
you're
waiting
for
something
in
there.
B
You
know
trying
to
make
eye
contact
and
they're
they're
trying
to
not
make
eye
contact
because
they've
got.
You
know,
20
other
people
in
their
sections.
So
I
would
say
that
you
know
trying
to
get
finding
out
less,
but
I
think
you
know
talking
to
other
hoas
and
what
their
experiences
are
is
is
a
real
is.
This
is
a
real
good
thing:
okay
and
then
another
question:
will
our
hoa
manager
have
set
office
hours
or
on
site
hours
yeah?
B
How
many
people
does
your
property
management
firm
have
on
staff?
You
know
that
just
because
you
know
if
it's
just
it's
just
me
and
my
cousin,
that
could
be
good,
but
if
they
have
25
other
properties,
that
could
be
bad,
so
it
kind
of
the
the
sort
of
the.
How
many
do
you
have
at
any
one
time
and
how
many
staff
that
you
have
is
is
also
it's
kind
of
connected
and
then
what
is
the
total
number
of
buildings
and
properties
that
you
manage?
B
And
again
you
know
that
it's
adult
it's
sort
of
a
you
know
it's
sort
of
a
thing
if
they
have
a
lot
of
properties.
That
means
probably
have
a
lot
of
experience
and
that's
always
a
good
thing.
But
again
you
just
don't
want
to
you
want
to
try
to
get
as
much
quality
as
you
can
and
and
get
as
much.
You
know
attention
that
you
need,
because
you
saw
all
the
things
that
they're
supposed
to
do
for
you
and
that's
a
lot.
They
should
take
a
lot
of
time.
B
You
know
to
to
do
you
write
and
so
hopefully,
they've
got
systems
built
in
that
you
know
in
divisions
and
and
and
team
leaders
and
folks
that
you
can
you
you
can
you
can
go
to
to
get
your
questions
answered
and
hold
on
here
and
I
think
that's
it.
So
I
was
a
bit
that's
about
roughly
an
hour,
so
I
think
that
was
that's
about
about.
B
That's
a
flag
that,
because
you
are,
you
know
they
are
doing
your
work.
You
know
they
are
in
charge
of
doing
what
you,
what
the
law
says
that
you
have
to
do
right.
So
in
the
last
training
you
know
we
told
you
exactly
what
you
have
to
do
and
so
what
you
hire
the
property
manager
to
be
your
agent,
and
so
I
think
that
that's
a
that's.
That's
the
that's
the
key
distinction.