Choosing the Right HOA Manager

The single most leveraged decision a California HOA board makes is its choice of community manager. The right manager keeps the reserves on track, the meetings calm, the insurance renewed, the contractors honest, and the board out of court. The wrong manager creates the opposite of all of that.

This page is for boards that are evaluating a management transition or hiring for the first time.

Manager versus management company

Most California HOAs hire a management company under contract. The company assigns one or more managers to the property, with backup support staff for accounting, after-hours, and administrative work.

Two implications:

1. 1. The contract is with the company. If your assigned manager leaves, the company is obligated to assign someone qualified. The contract terms matter.
2. 2. The manager is the relationship. Companies vary, but the day-to-day experience of being on a board comes from the individual manager. Evaluate both.

What credentials actually mean in California

California has a state-specific credentialing system run by CACM. Board members should know how to read the letters after a manager's name.

• CCAM (Certified Community Association Manager). The baseline credential. Requires coursework in California law, ethics, and the basics of association management, plus an exam, plus continuing education.
• CAFM (Community Association Financial Manager). A specialty credential focused on association finance.
• CAMEx (Executive). A leadership-level credential for senior managers and management company executives.
• MCAM (Master Certified). An advanced credential demonstrating extensive experience and continuing education.

A manager without a CCAM is not necessarily unqualified, but in California the certification signals a baseline understanding of Davis-Stirling, the Open Meeting Act, and reserve requirements. Most quality firms require it.

For more on credentials, see HOA Manager Credentials, Explained.

What to ask in the interview

When your board is interviewing management firms, the boilerplate pitches all sound the same. The questions below cut through that.

Portfolio fit.

• How many associations do you manage?
• How many associations does the assigned manager handle personally?
• What is the average age and unit count of those associations?

A manager handling 15 associations of similar size to yours is in a different position than one handling 35 associations of all sizes.

Reserve and financial chops.

• How do you read a reserve study before a board meeting?
• Walk us through how you would explain a 25 percent insurance increase to the membership.
• How do you handle a delinquency that hits 90 days?

Listen for substance, not slogans.

Communication.

• What is your standard turnaround on owner inquiries?
• How do you handle after-hours emergencies?
• What is your protocol when a board member calls you outside of meetings with a request?

The third question is the most revealing. A good manager has a respectful but firm answer. A weak manager will say whatever you want to hear.

Transitions.

• If we hire you, what does the first 90 days look like?
• How do you handle the document handover from our current manager?
• When does our membership find out about the change?

A clean transition plan is the difference between a smooth start and six months of chaos.

Watch the contract

Contracts vary widely in California. Things to negotiate:

• Term and termination. A long initial term with a high termination fee is a red flag. 12-month terms with 60 to 90 day termination notice are reasonable.
• Scope of services. What is included versus billed extra? Walks, after-hours, special projects, violation enforcement, hearing administration.
• Reimbursable expenses. Caps and reporting.
• Insurance and indemnification. The management company should carry its own E&O.
• Performance metrics. Some boards add a quarterly review with defined criteria.

A useful outside perspective

Todd Greisen wrote a paper for CACM titled Maximizing HOA Manager Effectiveness. It covers the board-manager relationship from the manager's side. Worth reading before you hire.

Where I fit

I am a CACM-trained community management professional and a real estate broker. When boards ask me to help vet management proposals, run a search process, or sit in on candidate interviews, I do that work as a consultant. If you want a second set of eyes that sits outside the management industry but understands it from the inside, that is what I bring.

Contact Hunter Mason.