WE CAN HELP YOU FIND THE RIGHT MANAGEMENT COMPANY
AND/OR FORM OF MANAGEMENT
Picking a management
company for a community or condominium association is one of the
most important decisions that the board, in behalf of the
membership, will make. Remember, the board still has a fiduciary
duty to use good care and judgment in establishing effective
management. Not all management companies are created equal and
not all management companies can provide the service which the
association desires or deserves.
As practicing attorneys
for over thirty-five (35) years, concentrating in condominium
and community association law, our firm has the insight and
experience to assist your association in picking the right type
of management company and the right form of management.
Often times, the board of directors of the association will be
given a management company chosen by the developer during the
time the developer is in control. Many times that management
company will recommend contractors, accountants and attorneys to
the association because of an affiliation between those service
related persons and the management company. Many times, the
management company will be a source of referral to the newly
elected board of directors of the association for attorneys,
accountants, contractors, and insurance consultants, among
others. The association should maintain independence from the
management company in the sense that it should choose its own
personnel to assist it in the operation of the association. In
making that choice, there should be no conflict of interest
between the management company and the persons whom the
management company recommends to the Association. The
association should choose its attorney, accountant, insurance
consultant, and contractors that do not have any direct
affiliation or financial dependence on with the management
company.
Our
firm can assist the association in asking the proper questions
to determine which management company is best suited to
represent the interests of the association having had the
background to make the proper inquiries as to the management
company’s experience, expertise, and ability to serve the
association. We can particulate either directly or indirectly in
the interview process to help filter out hype from accuracy.
Moreover, not all associations can best be served by
professional management. Some associations choose to have their
own in house management or self management and/or are large
enough to have an administrator on their payroll to assist in
the operation of their association.
The
management contract is the most important contract that the
association will sign. That should be reviewed by independent
legal counsel, not beholden to the management company before it
is signed. Not all management company contracts are the same and
there are certain provisions which need to be negotiated,
including indemnification and liability. We can assist your
association insuring that not only do you pick the best
management company available to serve your needs, but that the
contract that is negotiated will serve the best interests of the
association. The lesson of community associations which we have
represented over the years is not to sign a management contract
or pick a management company without first consulting with
independent legal counsel that can best serve and protect your
interests. |