Tuesday, March 19, 2013

Guilt by Association

It may be hard to believe, but on occasion Access Management Group (and any other management company) may come across a community that is mishandled by its Board of Directors - whether on purpose or not.  Examples include:   
  • Directors “rewarding” themselves for their unpaid services; 
  • Directors ignoring HOA educational opportunities; 
  • Directors fixating over a dissentious item to the exclusion of all others; 
  • Directors setting up shell companies to profit from various vendor services (i.e. landscaping, plumbing); 
  • Directors hiring “cheap” vendors who don’t carry proper insurance or credentials;
  • Directors obligating the Association to address repairs that are the homeowners’ responsibility; 
  • Directors refusing to obtain a reserve study or audit or consult expert advice;
And the list goes on!

The old adage “If you lie down with dogs, you get up with fleas” rings true.  Reputation is key for firms in the HOA industry.  Despite a competitive environment, business might be turned away rather than associating our firm’s name with questionable client choices.  If it is discovered that an existing client is taking such actions, we try to counsel and attempt to work through the problem - but if the Board refuses to change, it may be best to part ways.

The same holds true for reputable Boards:   Be cautious in whom you select to provide vendor services for your Association.  Value is measured by more than money.  Who you are and what you stand for attracts like types.  A long-term mutually respectful relationship brings strong continuity to a community, and constantly increases value for both parties involved. 

Choose wisely.

No comments:

Post a Comment