Just because an association wants to change the HOA manager doesn’t mean it has to fire the entire management company. If the problem is solely with the individual, board members can usually request a reassignment. To do that, it is important to learn the common reasons behind swaps, what the process entails, and the board’s authority to make this request.
Can the Board Change the HOA Manager Without Terminating the Management Company?
Many HOAs and condo communities rely on professional management to ease the board’s workload and ensure smooth operations. In most cases, associations are assigned an individual manager. But when relationships turn sour or performance dips, the board may find itself wanting a reassignment.
Generally, an HOA or condo can request a different community manager while keeping the same management company. The manager is merely an employee of the management company, and the association’s contract is with the company itself.
That said, the ability to replace the assigned manager depends on a few factors. These include the terms of the management agreement, the company’s internal staffing, and the relationship between the board and the management company.
Most reputable companies accommodate reasonable reassignment requests to preserve the client relationship. Boards can approach their contracted company to explore available options.
Who Has the Authority to Request a New HOA Manager?
The HOA management company does not control the association. It is simply there to provide support to the board, which holds the final decision-making power. In short, the board oversees the management company, not the other way around.
The authority to request a new HOA manager generally lies with the association’s board. Board members, not individual homeowners, communicate the concerns to the company. Sure, owners can lodge complaints, but the authority to ask comes from the board.
Does the HOA Board Need to Vote?
Whether or not the board must take a vote on the change depends on the governing documents and the management contract. In many associations, requesting a different manager falls under an operational or contractual matter that the board handles. That said, if the board wants to terminate or amend the contract itself, it will usually require the management company’s consent, too.
A change in HOA manager must be a unified decision. A single board member can’t just push for the switch — it must be a majority vote from the board. The board must discuss and vote on the matter at a properly noticed meeting, but several states allow consideration in executive session, including Texas.
Can Homeowners Request a Different HOA Manager?
Homeowners can certainly raise concerns and provide feedback to the board, but they generally don’t have the authority to compel the management company to reassign. That said, multiple complaints from owners can prompt the board to evaluate the manager’s performance and consider a change.
Common Reasons to Switch HOA Manager
Not every disagreement warrants replacing a manager. The board should not punish its manager because of a single mistake or a few minor errors. Here are the common situations that would validate a change in HOA manager.
1. Poor Communication
When the manager demonstrates poor communication skills, the board can request a swap. Communication problems manifest in several ways, such as slow or no responses, lack of follow-ups, and failure to keep the board informed.
2. Failure to Address Issues Promptly
It may be time to change HOA managers if they fail to address issues in a timely manner. For example, maintenance requests remain unresolved, vendor work keeps stalling, and violations are ignored.
3. Inaccurate or Poor Advice
Managers provide insights and recommendations to the board. Yet, incorrect guidance and misunderstanding the law can create liability concerns for the association. This can warrant a change in managers.
4. Lack of Organization
Missed deadlines, incomplete meeting packets, poor recordkeeping, and delayed financial reports are all clear signs of disorganization. When a manager fails at this point, the board should consider switching.
5. Inconsistent Rule Enforcement
Selective enforcement can expose the association to legal risks. If the manager handles similar violations differently or fails to document enforcement actions, they might not be a good fit.
6. Weak Vendor Management
Managers help the board coordinate and oversee vendors. When they consistently delay the procurement of bids, miss maintenance schedules, or fail to monitor vendor performance, the board should request a change of HOA managers.
7. Budget and Financial Concerns
Delayed invoice processing, inaccurate budgets, or missed payments are all red flags for a community manager. If these things happen repeatedly, the board should file a formal complaint and request a new manager.
8. Unprofessional Conduct
General unprofessionalism can show in several ways, including a poor attitude toward homeowners and frequent conflicts with the board. If the manager also breaches confidentiality, the management company should replace them.
How to Request a New HOA Manager
Here are the steps for requesting a new HOA manager while retaining the management company.
1. Communicate With the Manager First
Before anything else, the board must make sure it’s not jumping to conclusions or acting too rashly. It must give the current manager a chance to correct their mistakes.
Board members must have reasonable expectations. Managers are not miracle workers, and they should not receive blame for every community problem. Some issues stem from board decisions, budget limitations, or other restrictions. Changing the manager won’t magically solve these concerns.
Managers make mistakes every now and then. They’re only human, after all. Instead of basing the decision on an isolated incident, the board should evaluate the manager’s overall performance.
2. Review the Management Agreement
If the board decides that a swap is warranted, it should check the management contract before proceeding. The contract might address manager assignments or guarantees. Typically, board members must provide notice or communicate in a specific way to file a request.
3. Discuss the Issue During a Board Meeting
At a properly noticed board meeting, directors can review the documented concerns and determine whether the issues justify a reassignment. The board must vote on this issue and reach a consensus.
4. Contact the Management Company’s Leadership
If the vote passes, the board must speak with the management company. An executive, supervisor, or other type of liaison should be the point of contact. When explaining the situation, it is important to adopt a professional tone and focus on the facts.
5. Provide Specific Examples
Concerns must be documented properly. Documenting how the manager falls short of their responsibilities or expectations can serve as evidence. These act as concrete examples and will make it easier to negotiate with the management company.
Examples include:
- Records of missed deadlines
- Emails and correspondence
- Unresolved homeowner complaints
- Meeting minutes
6. Request a Reassignment
After providing evidence, the board can move to ask for a reassignment. Clearly state that the board wants to retain the company but work with a different manager. Ask about available alternatives and, if possible, discuss the timing of the transition.
7. Support the Transition
Once the new manager has been assigned, the board should schedule a time to formally meet them. The outgoing and incoming managers must review ongoing projects, share community priorities, and hand over essential documents.
Additionally, the board must establish expectations with the new manager. This will help them get started on the right track. That said, the board must allow the new manager enough time to learn the community and its processes.
What if the HOA Management Company Refuses?
An HOA or condo board can ask for a new manager, but the management company might refuse the request. This usually happens due to staffing limitations or contractual terms.
The first step is to attempt to resolve the issue through further discussion. Perhaps the current manager can undergo additional training or guidance.
If performance problems persist and the management company can’t accommodate a reassignment, the board may need to consider changing the management company. While drastic, it may be a better long-term solution, especially if the current manager is bringing the association down.
A Careful Move
It is possible for an association to change HOA managers without terminating the management company. That said, the board must understand what warrants a change and how to request one. Reassignment is not always possible, which may push the board to make a difficult decision.
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