In a perfect world, every HOA would find an amazing property management company, and the union of the two organizations would last forever. Unfortunately, this world can be imperfect sometimes, and there are many reasons why the agreements between property management companies and HOAs may need to be dissolved from time to time. If your HOA is switching property management companies, you might be facing a lot of unknowns. If there’s a change of property management companies looming in your not-too-distant future, here are some things you should keep in mind:
1. Print All of Your Financial Records
Maybe you’ve paid ahead a little, perhaps you’re behind a smidge, or conceivably, you’re all paid up and in good standing with a zero balance. No matter the case, you don’t want any confusion to take place regarding your account. Print or save copies of your ledger balance on the last day in which it’s accessible to you; it’s a good idea to print copies a few days before the expected termination date, too, in case you unexpectedly lose access to your account.
2. Obtain Contact Information of the New Company Immediately
You don’t need to wait until someone gives you the new company’s contact information. As a homeowner, it’s your right to have the contact information of the new property managers. If you’ve been given the name, you should easily be able to find contact information online. If you’ve not been given the name of your new property management firm, talk to your board of directors to clear up any confusion and ensure transparency within the community.
3. Continue Making Payments
Just because you haven’t received an invoice, it doesn’t mean you’re not on the hook for your HOA fees. Just as you’d have to pay your car payment or cell phone bill even if you didn’t receive a statement, your community expects you to make timely payments whether you’re receiving a bill or not. The tricky part when new companies take over management of properties usually boils down to timing: which company is responsible for taking your money and cashing your checks at the time you send it in? If you’re unsure, reach out to your board or the most recent property management company for direction. Again, be sure to keep record of all payments you make in case there’s a discrepancy when management changes hands.
Don’t let the fear of the unknown keep you from protecting your property. There are a lot of moving parts when HOAs switch property management companies, but once you’ve done your homework and have a better understanding of what the process looks like, you’ll be better prepared to put your real estate investment in the best position possible.