Guidelines For Hiring A Management Company

• The company and its employees should be members of a trade group that is working to improve industry standards, such as the Community Associations Institute (CAI).

• Visit the company's facilities. Check for yourself and assess the overall organization of the office. Find out how homeowners' funds are handled. What internal checks and balances are in place to safeguard Association funds?
 
• If the company is quoting fees substantially below the competition, find out why. Rates charged by management companies should not vary greatly. The rate will depend on the size of the Association as well as the services being provided.
 
• Make sure the company carries a fidelity bond, general liability and workers compensation insurance. Insist on seeing proof of insurance coverage.
 
• Be attentive. Pay attention to your financial statements at Board meetings. Insist on reviewing original bank statements to ensure against tampering or forgery.

• Establish a good relationship with the bank handling your Association's accounts. Review canceled checks on a regular basis.
 
• Always check references by calling other Association Board members about the performance of the company.