THE SELF-MANAGED HOA
Breaking Up is Hard to Do “All good things must come to an end.” “The honeymoon is over.” “Too much water under the bridge.” If there is an absolute certainty in HOA governance, it is that at some point, the board of directors will choose to terminate the current management agreement or manager relationship. The relationship between an association and its management company (operating as an agent of the association) or general manager (operating as an employee of the association) is often adversarial and not complementary. Tensions arising from confusing expectations or ambiguous contracts and service level expectations manifest as collective dissonance and unaligned expectations and objectives. Once 20
ISSUE FOUR 2021 | ECHO journal
board and/or member dissatisfaction with the manager or management company sets in, it’s almost impossible to maintain the relationship and be optimistic about moving forward. Inevitably, the board of directors will determine that it’s best to end the contract or employment agreement and go in a new direction. Managing a breakup successfully is critical for the continuity of the HOA in the areas of finance, compliance, and governance. For boards considering breaking up with their manager or management company, here is a checklist of activities to ensure a smooth breakup and easy transition to a new company.
