How to Create a Championship Team for a Community Association

Football season might be over, but the work isn’t done.  Whether your team had a great year or a terrible one, a good coach is always looking ahead to the next season.  One of the biggest concerns in preparation for the next year is to draft players that will shore up weaknesses or compliment strengths.  The same is true for a community association.  A strong board of directors relies on a host of service providers to thrive each season.  Property managers, insurance brokers, landscapers, contractors and more all contribute to a community association’s continued success.  It is important for directors to ensure that each service provider is a good fit for the team and performing as it should.

The first step towards a deep bench is to take stock of the association’s current roster.  Have current contracts been reviewed to ensure terms are still fair?  Have prices for services increased?  Are the contracted services being provided?  Are there issues that have been raised over the preceding year that should be addressed with a particular provider?  It is important to remember that this is not the same as “cleaning house” and picking all new vendors, which could lead to chaos and dropped balls.  Better to look at this review as an opportunity to strengthen existing relationships where possible.  

Next, the Board should consider what to do about weaknesses identified during its review.  Remember that service providers have businesses to run and, generally, want to do right by their clients.  Sometimes all it takes to resolve a problem is for the board or property manager to bring the issue to the service provider for resolution.  While phone calls can be a great way to quickly resolve minor issues, written notice is usually a good idea so the underlying issues are documented in a way that is easy to track (and, if necessary, provide as evidence in the future).  Good faith attempts at settling issues will not only save the association the money and time required to find a new provider, but it could result in a strengthened relationship with its current one.  A good coach lets players know when expectations aren’t being met and helps them get back on track – the same can be true when an association works with its providers.

That said, at some point a board will encounter a service provider that cannot or will not provide the level of service the association needs.  This can be because of excessive turnover, a company not growing as fast as its client base, or a simple difference in expectations that cannot be resolved.  Boards should understand that getting out of a contract can be a difficult process.  Georgia law generally upholds provisions that have specific notice or timing requirements for termination of a contract.  In reviewing existing contracts, or entering into new ones, a board should pay particular attention to language that provides the requirements for terminating the contract.  It is not uncommon to have automatically renewing contracts, but the board should ensure that there is a way to exit the contract mid-term and understand what is required for that process.  Attempting to end a contract outside of the explicit termination provision often requires a lawsuit that can cost thousands of dollars and take months to resolve.

The final step in securing a winning team for the next season is to bring in the talent.  When looking for new service providers there are a few rules of thumb to follow.  Ask for references so the board can speak to a few of a provider’s other clients about the services offered.  An association’s property manager is also a good source of information as they may manage other associations that use the same company.  A board should make sure it receives enough bids for a particular service to determine reasonable costs and contractual terms.  Multiple bids also protect the board from accusations of “sweetheart deals” or lack of due diligence from owners.  Always read the contract!  I know they are long, boring and full of legalese, but they also contain all the relevant information about the relationship.  Understanding what the contract says – especially as it relates to services provided and contract termination – will save the board a lot of potential grief in the future.  It is not uncommon for a contract to be referred to an association attorney for review when there are questions about it or just to ensure it is even-handed.  

Taking the steps above will not guarantee success, but it will put the association in the best position possible to face another season.