More often than not, a Board may come to the conclusion they no longer need the help of a manager because its members are arrogant, there’s “bad blood,” or it just doesn’t want to pay for the services any longer. A Board may decide it would like to change managers, change to a different management company, or it just doesn’t need the services of a manager at all any longer.
Before parting ways the Board should evaluate the HOA manager and ask: are we willing to sacrifice service and take on more responsibility?
When the HOA Board Parts Ways with the Manager
It’s important to keep the process professional. If the reason for letting the manager go is a performance issue, then the Board President should write a letter stating the concerns and what changes the Board would like to see, otherwise the Association won’t be renewing the contract.
If the Board determines there’s no room for improvement, then usually a 30-day written notice is required to cancel the contract.
When the Association parts ways with the HOA manager, the Association’s records are given back. The management company usually sends out letters communicating to vendors of the change. It will also send out letters to the homeowners letting them know of any steps they need to take. For example, changing their banking information used to electronically pay their HOA fees.
When the Management Company Parts Ways with the Association
There are some instances when the management company may decide to break up with a homeowners association. Sometimes, members are just rude and nasty and their actions go against the values of the management company. When a manager is being treated like a slave and talked down to, the management company can’t in good conscience allow its staff to be treated that way and should just walk away. In this case, a meeting with the Board president would be needed, explaining the circumstances.
The HOA Manager-Association Relationship
The California Association of Community Managers (CACM) says that an HOA manager typically only stays in the profession for 3 to 4 years. This is often due to a manager:
- Working in a negative atmosphere
- Frequently attending nightly meetings
- Dealing with a high demand on time
- Being poorly paid
- Always being blamed for problems
- Constantly holding people accountable
- Taking problems home
- Having the wrong skillset
That being said, an HOA manager-Association relationship allows them to work together with great people, solve problems, and be helpful. If there is a personnel matter between the manager and Board members, then the Board should consider the possibility of changing managers before giving up completely.
Breaking up is hard to do, but when it’s necessary it should be done in a professional manner that allows everyone involved to part ways as seamlessly as possible. Ultimately, it’s the responsibility of both the manager and the Board to protect, maintain and enhance the Association. If this can’t happen, it’s best for everyone involved to find a different solution.