Condominium and HOA communities all have Boards with the fiduciary responsibility for oversight of community facilities, grounds, finances and governance. Most Boards engage a 3
rd
party management team to support their community and take care of the tactical and operating details of the day-to-day operation of the association. From that fairly common starting point, understanding the most effective relationship between a Board and their management team can be elusive. The effectiveness of the relationship depends on the expectations and constructs from both the management team as well as the Board.
As our office assumes management responsibilities for a wide range of communities, it’s interesting to note how expectations shape effectiveness and, ultimately, the satisfaction of the Board with the management team…and vice versa. For new communities, or communities that transition from self-management to 3
rd
party management, sometimes there is a fear that the management company will be making “lots of decisions”, changing preferred vendors and driving up dues. Anyone familiar with the role of management knows that it is the Board that makes the key and strategic decisions affecting the community and the management company’s role is to implement policy and execute projects approved by the Board.
To optimize effectiveness and the potential strength of the Board/Management Team relationship, the operative word is “collaboration”. Board members have the best view of the interests and objectives of the community. Your management team typically has the experience and background from years of work with dozens of communities to help develop options and recommendations the Board can utilize in their decision process. It is not unusual that a challenge emerges which may be the first experience for a specific Board; but the management team can pull the experience of other communities, vendors or legal engagements that may quickly clarify the most effective path forward for the community.
As a point of clarification, although your management team should be able to draw on a wide range of community management experience, remember the proverbial context that property managers have experience and background often a “couple inches deep and miles wide”. However, as experienced as your team might be, they typically are not “experts” in any one particular field or trade. We are not qualified lawyers, insurance agents, irrigation experts, etc. While your management team has worked with all the specialties, your team should be able to recognize when greater “depth” is needed and recommend to their Boards engagement with experts such as condo lawyers, mold mitigators and the like. Your management team is more akin to a “generalist” that can help the Board identify when specialists really should be brought in.
At the end of the day, the Board, makes policy and strategic decisions. The effectiveness of the Board becomes magnified when it taps the experience and expertise of its consulting partner as both collaborate together to deliver the best in service and support to the community.
