It is a fair question to ask. According to a recent survey conducted by a leading association management software company, 67% of boards would not recommend their current management company. Understanding why boards are dissatisfied is the first step toward finding a company that actually delivers.
What Are the Most Common Complaints About HOA Management Companies?
The survey pointed to seven recurring issues:
1. Poor communication with the board and owners
It is common to hear that a manager did not respond to an owner or board inquiry for days or even weeks. This may be because the manager is carrying too many accounts, or the company is understaffed. It may also be that the manager deprioritizes owner responses, since they answer directly to the board and owners often contact them about matters that require board approval first. What tends to happen is this: if someone does not receive a response within a reasonable window of one to two days, they keep reaching out, creating a cascade of follow-up calls, emails, and texts that is harder to manage than a prompt reply would have been.
2. Incompetent back office operations
Effective management has three components: the working relationship between the Community Manager and the board; keeping the association in compliance with state statutes; and efficient company operations. That third piece includes delivering timely and accurate financials, paying vendor bills promptly, collecting dues accurately, penalizing owners who fall behind on assessments, and processing escrow transactions when owners sell. A weak back office means vendors may stop wanting to work with the community, and the board is left making decisions based on unreliable financial data.
3. Ineffective vendor oversight and poor vendor selection
While the board ultimately decides which vendors perform work at the association, the management company typically sources two or three options to choose from. It is best that those vendors have no ownership ties to the management company, as that could be considered a conflict of interest. A good management company finds vendors who do quality work at a reasonable price and withholds payment until the work has been inspected for completeness and competence.
4. Inability to keep the association in compliance with state statutes
If a board falls out of compliance with the Davis-Stirling Common Interest Development Act that governs California HOAs, the decisions it makes may not be enforceable. For example, a board cannot decide at a meeting to increase monthly dues by 25% without posting it on the agenda or notifying owners in advance. If the board is not familiar with the statutes, the management company should be there to guide them, flag limitations, and keep them on the right side of the law.
5. Charging too much and billing for unexpected costs
Management companies typically charge a monthly base fee determined by the anticipated workload for that community. Some companies attract boards with a low base fee and then charge separately for services not included in it. Before signing with any company, boards should ask what a normal monthly billing statement looks like. For example, when an owner sells, a management company is permitted to charge a fee to send a demand to escrow and to transfer the property. Some companies charge $400 for this service, while others charge $1,500. Knowing the difference upfront matters.
6. Overpromising at the interview and underperforming once hired
Every management company will promise superior service, quick communication, and an overall better experience at the interview stage. Once the contract is signed, those commitments can quickly fade. Companies know that switching management firms is an arduous and disruptive process. Some even include significant financial penalties in their contracts if a board chooses to terminate early.
7. Being reactive instead of proactive
Most board members already have full-time jobs. They want to make the important decisions for their community without taking on the day-to-day operational burden. They expect the management company and their assigned manager to anticipate problems, flag issues early, and give accurate guidance before things escalate. A reactive company that only responds to problems after they occur is not serving the board well.
So, How Do You Actually Find a Reliable Management Company?
Now that you know what to watch out for, here is how to find a company worth hiring.
Ask other boards.
The most reliable recommendation comes from a board that is currently using the company. This is not always easy to arrange since boards do not typically socialize together, but it is worth the effort to seek out a direct referral.
Check Google and Yelp reviews.
Past performance is the best indicator of future results. That said, be thoughtful when reading reviews. A company managing 200 associations and 15,000 owners will inevitably have some negative feedback. An owner whose car was towed for illegal parking is unlikely to leave a glowing review. What matters more is whether the company responds to those reviews. A company that engages with feedback, positive or negative, is one that takes its reputation seriously.
Interview at least three companies.
Listen carefully to how they describe their services and business model. Ask specifically how many communities each manager carries. Review the contract in detail and ask for a breakdown of all fees, including those not covered by the base monthly rate.
Visit their office.
Does the office look organized and well-run? Do the employees seem engaged? First impressions of the operation itself can be telling.
Ask about their growth and retention.
Find out how many associations they add each year and how many they lose. A company that dropped from 250 to 200 associations under management in a single year is a company worth questioning.
Is It Worth Switching If Your Current Company Is Not Performing?
Yes. Even if the process of switching is uncomfortable or complicated, do not settle for poor management. There are quality companies out there that offer reliable, responsive service. The effort to find one is worth it for the long-term health of your community.
