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Condominium Association Management Transition: A Plan for Success!
Planning is a must for just about any new or existing condominium association that is transitioning management companies. Once a notice is offered to a management company, planning has stopped being a choice. Management companies vary in their cooperative nature with transitioning services, electronic files, and management relations to a new company. Professional standards would dictate a professional exchange of leadership should occur between your management companies; however, reality is not the same as the ideal professional standard. Often, management companies take the loss in a customer personally. They do not realize that in most business relationships, needs and priorities of clients change. A brand new fresh perspective is what an association should progress. A big change is really a time for reflection for your exiting management company on which modifications in the management concepts have to happen in order to maintain existing business. Change is surely an inevitable a part of business model and should be part of the management process. - Atlanta Condominium Management Transitions when planned well could mean the main difference from a success and failure. The new company should help the Board create a project plan and timeline. The project plan's the main facet of a properly planned transition. The project plan will include the following data sets: Board Vision and Goals- It really is amazing how this easy planning concept remains away from transitions. Not understanding the association vision and goals, the management company cannot perform that vision. The vision and goals are the initial set of questions that the management company must ask. Ideally, this would occur even before an offer emerges. If both sides neglect to ask this question on proposal, how will you understand that you have found the right partner to accomplish the association's vision and goals? Making the incorrect choice here is the hallmark of your failure in the making. Communication Outline- The communication outline should give key times and notice releases to customers, vendors, owners, and other key players to make sure that the transition is on target. Initial notices ought to be ready for release before the Association notifies the present management company of termination. Once the existing management company releases the association, only termination services will often be performed with respect to the association. Financial Plan- Transitions will require funding for notices, mailings, set-up charges with the new company, and continued operations. Before requesting funding from the exiting company, the communication plan's established first to ensure that future payment and bills are received in a timely manner. It's not uncommon for the new management company to pre-fund the mailings and notices for that association until the association money is received in the exiting company. Often, the exiting company will take Thirty days release a funds.
The Board has every to request the immediate relieve reserve funds even though the existing management company closes out operations. Reserves ought to be sent immediate for the Board for deposit with the new company. An established amount needs to be utilized to fund the newest operating account with the new management company. This may ensure that the funding is available to stop interruption of services. Remember, the exiting clients are not there to produce your transition smooth. An easy transition can be the association together with the new management company. - Atlanta Condominium Management Budget Review- Budgets are prepared in several formats and methodologies. A whole report on the income and expenses need to be made with the Board. The transition will never be successful when the budget doesn't fulfill the goals from the Board as well as the Association. Vendor Service Changes- Enough time for transition is the best time to evaluate whether cheaper vendors are available with the new company. It is common the new management company might have better pricing from vendors eager to attract the association's business. We've found that we normally can shave a minimum of $5,000 to $10,000 off the vendor costs during this period. Social Interactive Meeting: Probably the most stressful times for owners is during any major alternation in association management and operations. Our everyday life have become multi-faceted where often change isn't a welcome factor. The poor economic conditions from the recession, family obligations, increased work commitments, and overall pace of our lives can't afford more chaotic changes. The secret is to change the negative concept of plunge to a positive concept; thus, this is actually the perfect time for any social to integrate the city, the Board, and the Management in a friendly and non-stressful environment. Missing this opportunity is really a major negative in ensuring an easy transition. Although more categories might be included with the aforementioned data sets, the truth is that without basic planning and knowning that incorporates the key structures of project management, the transition won't be successful for all the parties. - Atlanta Condominium Management
