Choosing a condo management company
A checklist for Boston condo boards comparing managers.
What a management company does
It runs the association's business for the board: collecting condo fees, paying bills, keeping the books, arranging repairs, handling vendors and insurance, and preparing budgets and reports. The board still makes the decisions.
What to ask
- How many associations our size do you manage in our neighborhood? Ask for two you can call.
- Who will our manager be, how many buildings do they carry, and who covers when they're out?
- How often will we get financial reports? Massachusetts law (M.G.L. c.183A §10) requires a written report to the board at least quarterly.
- Do you carry fidelity or crime insurance that covers association money?
- Who answers emergencies after hours, and how do you choose and pay vendors?
- What does the handoff look like, and how long does it take?
Comparing proposals
Line them up on the same scope: the monthly fee, what it includes, what costs extra (meetings, resale certificates, project oversight), contract length and termination terms. The lowest base fee is often not the lowest total cost.
Switching companies
- Read the termination clause. Notice periods of 30 to 90 days are common.
- Vote as a board under your bylaws.
- Pick the new company before giving notice.
- Plan the transfer of bank accounts, owner ledgers, records, keys and vendor contracts.
- Tell owners who to call and how to pay from the switch date.
General information, not legal advice. Talk to your association's counsel about your documents.