Managing a homeowners’ association can be complex, and sometimes the property manager does not meet expectations. Communication issues, lack of financial transparency, or services not being properly managed can be clear signs that it’s time for a change.
In this comprehensive guide, we explain step-by-step how to change your property manager efficiently and hassle-free. From identifying the most common issues to legal aspects and the documentation that must be transferred, you’ll find everything you need to make the best decision for your community.
If you feel that your community deserves more transparent and efficient management, keep reading to find out how you can transition successfully.
Introduction: The Key Role of a Property Manager
The property manager plays a crucial role in the management of a homeowners’ association, ensuring the proper upkeep of common areas, controlling expenses, and promoting administrative transparency. However, when the manager fails to meet their responsibilities, it can cause dissatisfaction and issues that directly impact residents’ quality of life.
In such cases, changing the property manager may be the best option to ensure that the community is well-managed and homeowners feel reassured.
Identifying Issues: When Is It Time to Change Your Manager?
There are several indicators that suggest it may be time to consider a change in management. Some of the most common include:
- Lack of financial transparency: If clear and updated account reports are not provided, the community could be exposed to mismanagement.
- Poor communication: A manager should be accessible and available to resolve queries and issues. If communication is lacking or non-existent, trust can quickly erode.
- Ineffective service management: Recurring issues with the upkeep of common areas or poor control over service quality can indicate mismanagement.
Steps to Change Your Property Manager
While the process of changing your manager might seem complex, following these steps can make it effective:
a. Reviewing the Current Contract: What You Need to Know
Before making any decision, it’s essential to review the current manager’s contract. This may include clauses about termination periods or specific conditions that the association must meet to avoid breach of contract. Make sure you fully understand these details before proceeding.
b. Convening an Extraordinary Meeting
To change managers, it’s necessary to convene a homeowners’ meeting. This meeting may be extraordinary (to address this issue alone) or part of a regular meeting. The association president or a group of homeowners representing at least 25% of ownership shares can call it.
c. Voting to Dismiss the Manager
A simple majority vote is required to approve the manager’s change. It’s advisable to have proposals for alternative managers before the vote to avoid gaps in management.
Legal and Procedural Aspects
The process of changing a manager is regulated by the Horizontal Property Act. It’s essential to comply with all legal requirements to ensure a smooth transition.
a. Compliance Check
The new manager must meet all legal requirements, including registration as a property manager and compliance with the General Data Protection Regulation (GDPR). Ensuring compliance is crucial for effective and lawful management.
b. Just Cause and Notification to the Manager
When the association decides to terminate the manager’s contract, the decision must be justified by “just cause.” This can include financial mismanagement, lack of transparency, or failure to fulfill the manager’s obligations.
If just cause cannot be proven, the manager may be entitled to compensation for breach of contract. In this case, it’s advisable to review contract termination clauses and seek legal advice to handle the notification properly.
c. Drafting the Meeting Minutes: Essential Elements
Once the decision is made, it’s important to draft the minutes correctly. The minutes should include who called the meeting, the voting result, and the agreements reached. Additionally, it should be signed by the community president and the secretary. This document will serve as official notice to the outgoing manager.
d. Deadline for Document Handover
The outgoing manager has 30 days from notification to hand over all documentation related to community management, including financial statements, supplier contracts, and meeting minutes. If the manager refuses to hand over this documentation, the community may take legal action to enforce compliance.
Documentation the Outgoing Manager Must Transfer
To ensure a smooth transition, the outgoing manager must deliver all relevant documentation. This includes:
- List of homeowners and their contact details.
- Financial documentation: Including account statements, approved budgets, and pending invoices.
- Contracts with suppliers and employees.
- Community meeting minutes book and bylaws.
Bank Accounts and Supplier Transition
One key aspect of the process is to ensure that the community’s bank accounts are properly transferred. This includes changing authorized signatures and managing the transition of supplier contracts to prevent service interruptions.
Recommended Transition Timeline
The transfer of all documentation and management should be completed within 30 days of the vote. Ongoing follow-up is recommended to ensure this timeline is met and to prevent management disruptions.
How to Select a New Property Manager
When choosing a new manager, it’s essential to consider several factors:
- Experience and reputation: Make sure the manager has experience managing similar communities.
- Services offered: Evaluate the services included in the proposal and verify that they meet your community’s needs.
- Cost and transparency: Compare fees, but don’t sacrifice service quality for the lowest price.
Technology Serving the Community: Transparent and Efficient Management
Nowadays, technology is an essential ally in community management. At Ríos Espinosa, we have a digital platform that streamlines administration and improves transparency. Through this app, homeowners can perform several key functions:
- Delegate their vote online: Homeowners can vote remotely without needing to attend meetings in person.
- Report incidents instantly: The app allows homeowners to report problems or incidents, speeding up the solution process.
- Book common areas: Homeowners can reserve areas like pools or sports courts efficiently through the app.
- Stay updated with receipts: Homeowners have access to all receipts and payments made, ensuring greater transparency in financial management.
Integrating Technological Tools with Current Management
It’s important that technological tools are integrated with the community’s existing management systems to ensure a seamless transition and maintain administrative efficiency.
Common Mistakes When Changing Managers
There are several mistakes that associations often make when changing managers, and avoiding them is essential for a smooth process:
- Failing to adequately check the new manager’s references.
- Lack of communication with homeowners during the process.
- Choosing a manager based solely on price rather than service quality.
Handling Confrontation with the Outgoing Manager
Changing managers can lead to confrontation, especially if the current manager does not accept the decision well. It’s important to maintain a professional tone and focus on the facts and contractual obligations. Staying calm and acting legally is key to avoiding major conflicts.
Benefits of a Good Property Manager
Having a good property manager offers multiple benefits:
- Improved quality of life: An efficient manager ensures that maintenance services are carried out on time and with quality.
- Resource optimization: A good manager helps reduce costs without compromising services.
Internal Audit Mechanisms and Expense Control
To ensure transparency and efficiency in management, it’s advisable to implement periodic internal audits and establish expense control mechanisms. This allows for greater oversight of the community’s funds and ensures that financial decisions are optimal.
Conclusion: A Step Toward Better Management for Your Community
Changing the property manager may seem complicated, but with proper planning and the right support, it can be a decision that positively transforms community life. At Ríos Espinosa, we are committed to offering a service based on transparency, efficiency, and professionalism, ensuring that your community is managed by a multidisciplinary team of experts in administration, finance, and legal regulations.
With our technology platform and customer-centric approach, we ensure a smooth transition and significant improvement in your community’s management. If your association is considering a change of manager, trust Ríos Espinosa to lead the process and enhance the quality of life for all homeowners.
