The right property management team can make or break a building. While basic day-to-day maintenance and financial oversight often take priority when managing a multifamily property, comprehensive property management also includes building security, legal compliance, and resident satisfaction. Blaine Tobin, senior media relations manager for the Community Associations Institute (CAI), says, “A successful partnership between board and management is the key to a well-managed building.” A policy of collaboration, clear communication, and transparency provides accountability and trust, and should the need arise, can help a building make a smooth transition to new management. 

Goals & Roles

According to Tobin, it’s important for boards to set standards and establish clear expectations for their management professionals early on to avoid confusion and acrimony later on. “Boards should clearly define their goals, priorities, and responsibilities from the outset,” he says, “including agreeing on providing services, communication protocols, and performance standards. Clear, written agreements—like a management contract—should outline the manager’s specific duties and timelines. Regular meetings should be scheduled to make sure there is a  mutual understanding and alignment. Open communication will help prevent misunderstandings.”

Marc H. Schneider, Esq., CEO of Schneider Buchel LLP, a Manhattan-based law firm focusing on co-ops, condominiums, and HOAs, agrees and adds that boards should “make sure expectations are clearly outlined in a written management contract. So many boards don’t pay attention to the details of the contract, but it’s critical. Don’t sign a contract without reading it thoroughly and having your board’s attorney review it.”

He also stresses that boards should take the time to set clear expectations for communication with their manager and/or management firm. “You are essentially handing over your business for someone else to run,” he says. “Let them know how you want to handle communication. Do you want weekly email updates? How many board meetings would you like to have the assigned property manager attend? What are your expectations for annual or special meetings? Put it in writing in your management contract.”

Schneider adds that “the board/property manager relationship is a relationship like any other. Make sure you communicate your goals and messages for working together. Your goals should be aligned—you don’t want a ‘gotcha’ moment.” 

Tobin says establishing clear goals, fostering open communication, and conducting regular evaluations are all essential for maintaining a productive relationship with a manager or management firm. “Transparency and regular performance reviews are crucial in consistently meeting expectations. Transparency helps both parties maintain trust, while performance reviews allow you to assess progress, address challenges, and make necessary adjustments.”

Keeping Things on Track 

According to David Unger, senior vice president of national property management firm AKAM, “Honest conversations are key—communication is critical. Transparency should be at the foundation of the relationship, especially when managing people’s homes. The stakes are high, and every action must be aligned with the agreed-upon plan. The board needs to work openly with their management company. If you see something not going well, it’s better to take the time to address it early on.”

He adds that “if regular updates and check-ins are in place, signs that something is going off track—such as missed deadlines or unresponsiveness—should be evident. Regularly scheduled meetings allow everyone to course-correct before small issues escalate into bigger problems.”

Holding scheduled meetings with your management professionals and getting feedback can help board members monitor performance. Tobin states, “Boards can track performance through regular meetings with their management firm, clear reporting systems, and key performance indicators. Boards should solicit feedback from residents regularly and use surveys or questionnaires to measure satisfaction.”

Regularity can also help in terms of financial oversight. “Boards run on a balanced budget,” says Unger. “They’re not operating for profit, so precise money management is crucial. Monthly bank reconciliations and financial reports should show how you’re tracking against the budget. Maintaining a healthy reserve is critical.” 

Schneider concurs. “Regular financial reporting to the board is important so the board can see how they are doing compared to the amounts budgeted. Boards run on a balanced budget. They are not for profit, so they need to be sure they are managing money properly. Proper budgeting and staying on top of the current expenses by receiving regular reports will help boards be prepared when there are unexpected increases, such as the recent insurance increases virtually every association has faced. “

When Things Go Wrong 

Slow response time—or worse, no response at all—from management is a chief complaint among residents. Few things raise the ire of condo and co-op owners and shareholders like asking a question or needing help and getting silence from the professionals hired to provide them with information and assistance. 

“The pandemic really changed the environment,” says Unger. “People are in their homes much more than before, as working from home has become more common. They are noticing things more around their homes and expect quicker response times. The volume of interactions—emails, phone calls—to management is at an all-time high.”

Schneider adds that “residents do want fast response times, but you also have to look at whether the complaint is really an issue of non-responsiveness, or one of the managers just not giving an answer that people like.”

According to Unger, “When you pair up the number of residents to the number of managers and assistants available at any given time, it is easy to see why responsiveness has become an issue. As technologies progress however, we can address the increased need for communication and faster response times.” Automated tools, resident portals and apps, remote services, and data analytics all help improve response time.

When there are performance issues, Tobin says, “Boards can proactively address these issues, establishing strong communication channels and ensuring regular updates. When addressing underperformance, boards should remain calm, objective, and focused on the facts. They should communicate the issues, set measurable goals for improvement, and provide time for corrective actions. Avoid being confrontational or punitive; instead, collaborate to find solutions.”

When It’s Time to Part Ways

“Boards should consider parting ways when there are repeated performance issues or when the relationship no longer aligns with the community’s needs,” says Tobin. “Boards need to have proper notice periods, a clear handover plan, and communication with residents to explain the change.”

Schneider emphasizes the legal considerations. “The process for terminating a management contract typically involves reviewing the contract terms, providing formal notice, and ensuring compliance with legal or contractual obligations. To avoid financial or legal liability, boards should consult with their legal counsel to ensure they follow proper procedures. 

“Get counsel involved in drafting your management contracts to make sure everything is very clear,” he continues. “This will also protect you in the event of a contract breach. It is oftentimes significantly cheaper to have the board’s attorney draft and review the initial contract than to deal with the lawsuit after a poorly drafted or one-sided contract is terminated.”

According to Unger, “Every manager has a supervisor, and there is an escalation chain if needed. A successful board and management company relationship should be collaborative and based on mutually agreeable ideas. This ensures everyone stays on the same page. Adjustments will inevitably be needed, but making those changes thoughtfully can lead to positive outcomes.”

Schneider adds, “It’s difficult to terminate a contract mid-term unless that right is built into it. I’ve seen boards try to hire a new company when it turns out that doing so would have put them in breach of their existing contract and exposed them to litigation. You should always communicate with counsel before terminating a contract or signing with a new company.”

“Effective management is all about relationships,” says Schneider. “Sit down with your management company, address issues head-on, and ensure there are no surprises. A good partnership between the board and the management company can prevent misunderstandings and improve outcomes for everyone.”

A great property management team will be able to listen, communicate, be transparent, and encourage collaboration as they partner with the Board and residents. From handling day-to-day tasks to resolving conflicts, the manager connects everyone in the building with grace and professionalism. By balancing the needs of the residents and the board, a skilled property manager helps residents stay informed and engaged, and makes the building run smoothly and efficiently. 

Kate Mattiace is Associate Editor of CooperatorNews.