By Richard Kuziomko, MBA, CMCA, AMS, PCAM Richard is the general manager of The Kenwood Condominium in Bethesda, Maryland and the President of the River Creek Owners Association in Loudoun County, Virginia. He has been an active writer, speaker and lecturer at various WMCCAI forums and member of both the Education and Quorum Committees.
SUCCESSFUL TRANSITIONS: Changing Management Companies
A
lmost all associations inevitably come to a point when they change management companies. Whether it be full service or financial, a change is sometimes a good thing. There are many reasons for doing so, some of the main ones are: • the management company has been there a long time and a board wants to know what other companies can offer.
The current company is another matter. When they lose a contract, interest may wain. But they are being paid so insist on getting every service they are contracted to provide. If you can get the parties together for a transition meeting it will help both sides understand what the other requires. The current management company will have access to bank accounts which have to be changed. This will include signature cards, receipt of
correspondence from government agencies, copies of documentation and other things. Everything the current management company has belongs to the association. Insist on getting it. Because so much of today’s documentation is electronic, getting copies of the general ledger, accounts receivable and accounts payable will be in data format. Insist on
• service has deteriorated over time; the association is taken for granted. • costs have been increasing or seem to be out of line with other associations. • with a fully qualified manager, the need for full service is no longer necessary, financial service may suffice.
Whatever the reason, and however the decision is made, the transition process can be the difference between success or aggravation. Before letting the current management company know of the change, carefully discuss with the new company how they will manage the transition. Well-established companies will have checklists with key events and items needed. For example, they will cover utility payments, general ledger mapping, reports etc. Use the new company to drive the transition, as they have a vested interest in getting the change done successfully and on time. 28 | QUORUM
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