Knowing how to navigate the transition of your management company is essential – sometimes the manner in which they end can overshadow the good will that preceded that ending.
In the context of a community’s relationship with their professional management team, the stakes can be high. With so many boards ceding their authority and operations to management companies, management transitions can be difficult as boards are often ill-equipped to successfully manage their own community; which is why clarity is needed when undertaking this process.
One of the most important steps a board should take is to retain a copy of the executed management contract. Many boards are surprised to learn that they have not retained possession of a copy of their management agreement, which can be problematic if issues arise and they have to ask the management company to provide that agreement to them or to their attorney. Most association management companies include a vast array of services now, such as: insurance procurement, collection of delinquent accounts, financial operations for the community, infrastructure maintenance, and interaction with vendors and professionals. Most large management companies also offer technology that streamline operations for communities; however, when it comes to receiving copies of all those records at the end of a relationship, some companies refuse to deliver the records altogether and assert that those records belong to the management company, not to the association.
Florida law requires management companies to turn over the association’s records at the end of a contract, even if a monetary dispute exists. Although management companies might consider leveraging those records and the difficulty their absence would create for the community association – they could put their reputation at risk if they do so.
To avoid treachery, or drawn-out contract negotiations, it is important to have a legal team in place to protect the rights of the condominium and homeowners association. Our community association attorneys are expert in contract review and contract litigation, and can make sure the best interests of the association are prioritized.
Arrange a free, no-obligation consultation, where you can discuss your legal concerns with a partner of our firm. We look forward to answering your questions and seeing how we can meet your legal needs. Call us at 954-476-2680 or contact us online today.
Through a free, no-obligation consultation, you can discuss your legal concerns with a partner of our firm. We look forward to answering your questions and seeing how we can meet your legal needs.
Call 954-476-2680 or contact us online today.