Choosing a Management Company

Part 1 – General Information

1. How long has your company been in business?
The company was formed in 1984.

2. Who will be the community manager assigned to handle this association?
To be determined after meeting with the Board and based on other communities managed in the area.

3. How much experience do your managers have?
We have four (4) managers with a combined fifty-one (51) years of experience in this industry.

4. Which licenses or certifications do your managers have?
CMCA, AMS, PCAM, awarded by the Community Associations Institute (CAI), and on-going training.

5. Is your management company a member of Community Associations Institute (CAI) and if so, what does CAI do for you?
Yes. CAI provides extensive training and educational support for our staff. Additionally, it has a Legislative Action Committee that keeps our firm advised of new laws, regulations or trends affecting community associations. This organization also allows us to share information among professionals nationwide.

6. What are your company hours?
8:00 a.m. to 4:00 p.m., Monday through Thursday, 8:00 a.m. to noon on Friday.

7. What form of after-hours service does your company provide?
Emergency calls forwarded to an on-call manager’s cell phone, after office hours, seven (7) days a week.

Part 2 – Administrative
Meetings:

1. Will the assigned manager attend every other month/quarterly Board meetings?
This varies with Association needs and the management agreement.

2. How many hours do you allow for meetings before extra charges are incurred?
One and one half (1-1½) hours.

3. Do you attend annual meetings?
Yes. As agents for the Association, our job is to provide service and support to the Board of Directors.

4. Will you prepare ballots and annual meeting notices?
Yes, it is a part of the management agreement.

5. Will you prepare and post agendas for all meetings?
Yes, it is a part of the management agreement.

6. Will you record, prepare and distribute the minutes of all meetings?
No. This is best done by a recording secretary to allow all Board members and management staff to fully participate in the meeting.

7. Does your company provide Board meeting packages prior to the meeting?
Yes, board packets are mailed five (5) days prior to the meeting.

8. If yes, do the meeting packages include the following:
Agenda – Yes.
Previous meeting minutes – Yes, if supplied by the recording secretary.
Work orders, service requests and CC & R’s, pending and completed – Yes.
Financial statements – Yes.
Delinquency Report – Yes.
Specifications and bids – Yes.
Items requiring board decisions or votes – Yes.

Record Keeping:

9. Does your company maintain an owner roster?
Yes.

10. How about a tenant roster?
Yes, if requested by the Board of Directors.

11. Do you use files for each unit?
Yes (electronic files)

Correspondence and Mailings:

12. Does your company charge for any of the following? If yes, how much?
General letters – postage and copy charges
Notices – postage and copy charges
Newsletters – postage and copy charges, plus $100 per page

Resale Coordination:

13. Are your costs billed to the Association or to the owner?
To the Association, then rebilled to the owner.

14. How much do you charge for a resale packet?
a. Resale Packet – $195 (more for rush orders)
Includes the 17 certificates required by PA Statute plus Governing Documents, prior year’s financial statement and current year’s budget.
All of these documents are provided through an outside service whose prices vary.

Enforcement of Rules and Regulations:

15. Does your company send out violation notification letters?
Yes,it is part of the management agreement.

16. Do you charge a fee for sending them out? If so, how much?
No, except postage and copy costs.

17. Do you help the Board establish a rules violation hearing procedure?
Yes.

Part III – Financial
Bank Accounts:

1. Will you keep all of the Association’s bank accounts in the Association’s name?
Yes. It is a legal requirement.

2. Does your company use trust accounts?
No.

3. Will all of the Association’s accounts be interest bearing?
Yes.

Bookkeeping:

4. Do you do bookkeeping in-house, or is it done by an outside company?
In-house.

5. Are the cash receipts and disbursement statements submitted to the Board on a monthly or quarterly basis?
Monthly or quarterly depending on the management agreement.

6. Does your financial statement show an actual-to budget comparison?
Yes.

7. Does your financial statement show a reserve account reconciliation?
Yes.

8. Does your financial statement show how much is in each of the Association’s accounts?
Yes.

9. How often are the bank statements reconciled?
Monthly. Bank statements are reconciled by the accounting supervisor, not the accounts payable clerk that processes the checks.

Homeowner Dues/Fees:

10. How do you handle billing of members for their monthly dues/fees? Statements? Coupons?
We arrange for financial institutions to receive owner assessment with four options of payment methods to suit each owner’s preference. The payment options are listed below:

  • on-line (e-check) payment via the internet
  • credit card via the internet
  • payment coupons
  • recurring payment from your authorized bank account set up with Alliance Bank.

The online payment systems are free to both the owners and the Association.  Owners choosing to pay by credit card will be charged a 3% per transaction fee by the bank.

11. Do you use “Direct Deposit” to the bank?
Yes, to a lock box system.

Accounts Payable:

12. Who approves payment of the service/product invoices made out to the Association?
The Manager can authorize payments in line with a written Board policy.

13. Who prepares the checks?
The accounts payable clerk.

14. Who signs the checks?
The accounting supervisor as per a written policy of the Board of Directors.

15. After the disbursements have been made, how do you file the paid invoices? By month? By account?
Invoices are filed by vendor and tracked by date and account.

Delinquency Collection:

16. Is the delinquency collection process handled in-house or by an outside company?
The first ninety (90) days are processed in house. If the delinquency progresses beyond ninety (90 days), a collection Attorney requests a hearing. After receiving a judgment at the hearing, further collection action commences.

17. Are there any additional costs for the delinquency collection? If yes, how much are they?
Yes, $20 for a late notice, $45 for a thirty (30) day letter, $75 to file a court action, and $50 if constable service must be secured are billed to the Association then rebilled to the owner as per State Statute.

18. Do you provide a delinquency report?
Yes.

19. Is the report written or oral?
Written.

Budget:

20. Will your company prepare a pro-forma budget?
Yes.

21. Does your company bill an individual homeowner for a copy of the budget?
Every Association member receives a complimentary copy of the budget or it will be made available on the Association’s website.

22. Does your company do a reserve study?
No. An independent reserve study is recommended at least every three (3) to five (5) years. Those numbers are incorporated into the Association’s budget. Our company will update the budget information with current year-to-date numbers at an additional charge.

23. Do you oversee the preparation of the reserve study by an outside party?
Yes.

24. How often is the reserve study conducted?
every three (3) to five (5) years.

Audit/Review and Taxes:

25. Do you coordinate the activities involved in audit/review preparation?
Yes, and actively assist whenever questions arise.

26. When do you send out the review/audit?
Within thirty (30) days of completion or it is placed on the Association’s website.

27. Do you charge an individual homeowner for a copy of the review/audit?
No.

28. Do you make sure that an Association’s taxes are paid on a timely basis?
Yes, it is part of the management agreement.

Part IV – Maintenance

1. What information does your company request from a contractor before awarding a contract for major work?
Contractor’s PA license # – Yes.
Certificate of Insurance – Yes.
List of references – Yes.

2. Do you file and retain the information requested above?
Yes.

3. How many bids do you obtain for major jobs like roofing or painting?
A minimum of three (3).

4. At what monetary level do you consider a job to be major?
$5000 plus. However, this amount may vary, it is really dependent upon what the specific job is and the Board’s discretion.

5. How many site inspections does your bid include?
A minimum of one (1) per month. Usually two (2) or more during the growing season.

6. Do you handle service requests?
Yes, it is part of the management agreement.

7. Will the Association’s vendors be supervised by your company?
Our company will assist in the supervision of contracts as approved by the Board of Directors, and will monitor the Association’s regular vendors.

8. Does your company provide any in-house maintenance services for the Association’s you manage? If yes, what kind and what are the rates?
No, we believe this is a conflict of interest in securing the best prices for the Association.

Part V – Extra Services

1. Are any of the following provided to the Association at an extra cost? If yes, what is the cost?
All charges are identified on Addendums A & B to our management agreement.

Part VI – Expenses

1. How much does your company charge for the following management expenses?
Copies – 10 cents per page for black & white, 50 cents per page for color for items needed to maintain permanent records for the Association or mailings to owners.
Printing – 10 cents per copy for newsletter, audits, budgets, annual meeting information, special mailings as directed by the Board of Directors.
Scanning – 5 cents per page.  Bulk scanning pricing will be quoted.
Coupons/Statements – $15.00 per year per coupon book.
Stationery/Envelopes/Check Stock/Faxes/Office Supplies – All charges identified and included in the year end stationery charges on Addendums A & B to the management agreement.
Mileage – Company absorbs.
Postage – Actual cost.
Direct depositing of homeowner dues/fees – No extra cost.

Part VII – Management Fees

1. Will there be a star- up or close-out fee?
Start up fee to establish your records in our office to be negotiated. There is no close-out fee.

2. What would be your monthly fee?
Fee to be specified in the management agreement.

3. What hourly rates do you charge for the following staff members?
Principals – $150 per hour
Managers – $100 per hour
Assistant Managers – $50 per hour
Delinquency Collection Personnel – per action stated previously and then rebilled to the owner.

The above staff rate is included in the management fee for all contracted services. These rates are for outside management agreement services.