As a Board member of your community association, you have fiduciary responsibilities that require that you receive professional and accurate advice. By hiring an Accredited Association Management Company (AAMC) such as Ross Morgan & Company, you can be confident that your management company understands their obligations to your community and is dedicated to their profession – just the kind of people you need to protect your biggest investment. AAMC members represent knowledge, experience and integrity. Ross Morgan & Company is 1 of 170 Accredited Management Companies in the United States.
Below you will find some tips for hiring a Property Management Company or reviewing the performance of your present management company:
- The company and its employees should be members of a trade group that is working to improve industry standards, such as the Community Associations Institute.
- Visit the company’s facilities. Check for yourself and assess the overall organization of the office. Find out how homeowners’ funds are handled. What internal checks and balances are in place to safeguard Association funds?
- If the company is quoting fees substantially below the competition, find out why. Rates charged by management companies should not vary greatly. The rate will depend on the size of the Association as well as the services being provided.
- Make sure the company carries a fidelity bond, errors and omissions, general liability and workers compensation insurance. Insist on seeing proof of insurance coverage.
- Be attentive. Pay attention to your financial statements at Board meetings. Insist on reviewing original bank statements to ensure against tampering or forgery.
- Establish a good relationship with the bank handling your Association’s accounts. Ask for a copy of the signature card to ensure that the correct card is on file with the bank. Review canceled checks on a regular basis.
- Always check references by calling other Association Board members about the performance of the company.
- Meet with your independent CPA at least once per year. Ask him/her whether the records were found to be in order and whether any exceptions were noted during the review process.