HOAs Should Not Blindly Enter Into Property Management Agreements
When a homeowners association decides to retain professional management it is typically provided with a standard form management agreement that is utilized by the management company. Because those agreements have been drafted by lawyers who are retained by property management companies or associations comprised of property managers, they are understandably drafted in a manner that is designed to protect the interests of the property manager. As such, there are many terms contained in the document that are not in the best interest of the homeowners association and which should be renegotiated and modified as desired. The extent to which a prospective property manager will agree to modifications in the terms of the property management agreement is typically a function of the size of the property management company and how much they desire to take on the particular homeowners association as a client. Smaller property management companies that are controlled and operated by one or two people will probably be more receptive to modifications than larger more independent companies.