Hiring the right property management firm is one of the most important decisions a residential HOA board will make. A good manager protects property values, ensures compliance with governing documents, demonstrates strong fiscal management, reduces board workload and responds to owner needs and interests.
HOA boards often struggle to agree on a property manager, however, because board members bring different experiences and expectations to the selection process. Disagreements may arise over whether to prioritize keeping costs low or enhancing services, experience over personality fit, high-tech versus traditional models and more.
While there is no single best strategy, boards need to agree on and follow a process. Consider these ten best practices for selecting a property management company for your HOA.
Clearly define needs and expectations upfront
Evaluate current management and seek input from owners to instill a sense of involvement in the decision-making process. Identify “must-haves” and prioritize the “nice-to-haves.”
Prepare an RFP outlining the property’s parameters and documented needs
Include required services (e.g., full management, financial only, janitorial and maintenance, vendor/project management, security), community size and amenities, technology and reporting expectations, insurance requirements and HOA budget management. Distribute the RFP to prospective management companies and request detailed proposals to enable apples-to-apples comparisons.
Conduct interviews
Interview the top 2-3 respondents using a consistent set of questions. Assess cultural and personality fit, as well as the management company’s communication style and responsiveness. Discuss governance and board support, financial management (including for reserves), planned capital projects and long-term planning. Ask for and check current references.
Assess experience with like properties
Size, budget and amenities drive HOA service needs. Look for a property manager with experience in communities similar to yours and expertise to support prioritized needs, e.g., fiscal stewardship, policy enforcement, security and capital project planning/management. For smaller communities, assess the level of dedicated support provided and ease of access to senior and executive management. Property management firms with a high manager-to-community ratio or that limit direct access to top leaders may be a red flag that they prioritize larger communities over smaller ones.
Looking for a property manager that’s accessible, experienced, and built to support your community as it evolves?
Consider credentials
Property management companies operating in Illinois must register with the Illinois Department of Financial and Professional Regulation (IDFPR). Check licensure and any disciplinary activity at the IDFPR license look-up page. Beyond licensing, membership in industry groups like the Community Associations Institute and the Institute of Real Estate Management signals a commitment to professionalism.
Look for credentials such as Certified Manager of Community Associations (CMCA®) and Accredited Residential Manager®, which indicate knowledge of governance, finance and HOA law. Ask about licensing and REALTOR® organization membership. A licensed, professional broker can offer added value. Several GNP staff members hold specialty property management designations, including ones specific to HOA management and hold Illinois brokerage licenses. GNP is a member (and acts as property manager) for both the National Association of REALTORS® and the Chicago chapter.
Discuss maintenance services and vendor management
Costs associated with routine maintenance and unplanned maintenance projects can put a big dent in the HOA’s budget. Look for a property manager that offers both in-house services and maintains a pool of external contractors for specialized needs. If your community has an existing vendor relationship you want to retain, ask about the option to transfer current contracts.
Review technology supporting the resident portal
Most communities rely on an online portal to manage work orders, make payments and communicate with owners, reducing board members’ administrative burden and improving transparency. While some management firms use proprietary technology, HOAs risk disruption and the loss of historical information should the board choose to change managers or if the manager opts not to renew a contract.
Discuss board and owner communications
Even a well-managed HOA can experience problems if communication with the board (and owners) falls short. Discuss general expectations (frequency, channels and emergencies) and the process for responding to owner complaints and escalation procedures.
For example, we maintain clear, timely and documented communication through multiple channels, including emails, portal notices, postings and direct correspondence. Our team consistently provides routine updates and critical announcements to keep owners informed.
Select a new manager and finalize the contract
To protect the board and demonstrate transparency, document the selection process. Keep records of RFP responses, interview notes, scoring criteria and the board vote. Ensure responsibilities and expectations are stated clearly in the agreement. Contracts typically run 2 to 5 years with an auto-renewal clause. Ensure any renewal clause includes a termination option.
Plan for transition
With your newly hired property manager, develop a transition plan to ensure continuity of operations with minimal disruptions. The plan should cover transfer of records, institutional knowledge (if current on-site staff will not remain), changes to communication channels and informing residents.
To ensure a successful transition, our team monitors key performance indicators across staff retention, resident satisfaction, service continuity, financial management, process adoption, issue resolution and board reporting. This process helps us identify and address any challenges in the timeliest manner.
GNP prides itself on providing customized approaches to each client and every project as part of its residential property management service. We start with defined HOA goals and work from the inside out to deliver on those goals, property performance and resident satisfaction. Meet our property management team and contact us if your HOA is in the market for a new residential property manager.
