Must-Ask Questions for Associations Hiring a Management Company

If your Association has reached the point of hiring a management company, you very well know how difficult it can be to run things smoothly. This is why it is vital to ask the right questions when interviewing property managers to ensure your Association is in good hands. To help you prepare for these conversations, we share the following list of questions to help you evaluate your options and, hopefully, choose the right fit.

Our Top 5 Must-Ask Questions:

1.    How are association funds handled and safeguarded? (Including: Are funds held in separate accounts in the association’s name? What internal controls prevent fraud? Who has signing authority?)

Why this matters: Financial mismanagement and fraud are the highest-risk areas for associations. Proper segregation of funds and internal controls is critical.

2.    Who will be our assigned manager, and how many other communities will they handle?  Who is the team around them that works closely with the manager?  Do they handle everything on their own, or do they have teams for maintenance, accounting, and work orders?

Why this matters: Workload directly affects responsiveness, compliance, and enforcement consistency.

3.    What services are included in your standard management agreement, and what costs extra?

Why this matters: Boards often discover later that election administration, late-fee administration, compliance support, meeting attendance, mailings, litigation/hearing attendance, or enforcement tracking are add-on fees. Clarity prevents disputes and budget surprises.

4.    How do you handle delinquencies and coordinate with legal counsel on collections?

Why this matters: Assessment collection affects cash flow, reserves, and fairness among members. A structured, legally compliant collection process is essential.  Collections should be handled timely, no later than when an owner exceeds 90 days past due.

5.    What insurance and fidelity coverage does your company carry?

Why this matters: If the management company mishandles funds or makes an error, the association needs to know there is adequate coverage (E&O, general liability, fidelity bond).

Further Questions:

Background

• How big is your management company?

• How many property managers are there?

• How many properties do you manage?

• How long has your company been in business?

• What is the size range of the communities you manage?

• Have you ever been the subject of pending litigation?

• What types of properties do you specialize in?

• Have you managed communities similar to ours?

  • This can include attributes like size, amenities, age, complexity, or others that are unique to your community.

    
    

Manager and Staffing

• What training and certifications do your managers have?

• What is your coverage plan if our manager is unavailable?

• How are emergencies handled?

  
  

Scope of Services

• What services are included in your standard management agreement?

• Are there any services that cost extra?

• Will you attend our annual meetings?

  • If so, is this an additional fee?

• Do you assist with election administration, annual disclosures, and regulatory compliance?

• How do you support covenant/rule enforcement?

  
  

Financial Management

• How are association funds handled and safeguarded?

• Are association funds held in separate accounts under the association’s name?

• Who has signing authority?

• Do you provide monthly financial reports? If so, what do they include?

• Do you assist with budgeting and reserve planning?

• How do you handle delinquencies?

  • Do you shut off owners’ account access?

• How will you coordinate with our legal counsel on collection matters?

  
  

Maintenance and Vendor Management

• How are maintenance requests submitted and tracked?

• Do you conduct regular property inspections?

• How do you handle emergency repairs?

• How do you vet vendors? Do you negotiate contracts with them on behalf of the association?

Communication and Technology

• What is your turnaround time for board and homeowner inquiries?

• Do you provide an online portal for payments and records?

• How are board communications, decisions, and enforcement actions documented?

• Do you assist with newsletters or community updates, or will that cost extra?

• How do you handle difficult homeowners?

Insurance and Risk Management

• What insurance and fidelity does your company carry?

• What is the contract term and termination process?

• How do you assist with annual insurance reviews?

• How do you assist the board in risk mitigation?

Transition

• What is your onboarding process, and how long does the transition take?

Red-Flag-Raising Questions

• Who owns the association’s data and records?

• Who owns the website?

• How do you prevent conflicts of interest?

• What internal controls do you have to prevent fraud?

• What is your employee turnover rate?

• Do you have any pending lawsuits or insurance claims?

• Why do associations typically leave your company?