Page 8 - New England Condominium August 2019

8 NEW ENGLAND CONDOMINIUM -AUGUST 2019 NEWENGLANDCONDO.COM C o-op, condo and HOA communi- ties are a property manager’s bread and butter. Ensuring that their cli- ent buildings and associations run smooth- ly everyday provides managers with both purpose and pay. Therefore, it stands to reason that a dedicated manager might bend over backwards in order to satisfy his or her client – even if that client’s requests border on the outlandish. But that very term ‘borderline’ im- plies that there is in fact a line that can be crossed, and that an association can generate enough headaches for its man- agement to make continuing to serve that community feel like a losing proposition. In these instances, it may be prudent for a manager to end that professional rela- tionship and rather focus on clients who aren’t a 24/7 source of anxiety. Keep It Together Before cutting ties with an association, a manager should conduct a thorough cost-benefit analysis. Can the relation- ship be salvaged? Is there someone else in the management company who might be better suited for this client? A lot of time and money is at stake, so any parting of ways must be well worth it. It’s also a matter of corporate culture and philosophy as well. Some manage- ment companies prefer to fight it out un- til the bitter end, rather than terminate a relationship with an association. “We have never given a building back due to board members who could not work to- gether,” says Joe Kanner, Owner of Quan- tum Property Management in Elmsford, New York. “When an issue does arise, we will sit down with the board and try to work out any differences, whether be- tween members, or with us. We would make this an official agenda item for a board meeting so it could be discussed openly, and action taken. I honestly see no reason why we would ever quit work- ing with a client.” Over time, a good manager develops the instincts necessary to read a board, and to tell the difference between a mi- nor breach that can be repaired, versus a sign that things are beyond salvation. “We all work so hard to get clients, that it can be challenging to accept the notion that sometimes it’s best to just let go,” says Thomas Wood, CEO of J A Wood Man- agement in Lexington, Massachusetts. “I used to think that it was a failure on our part for not being able to work through something. But the truth is, if someone is paying for advice \\\\\\\[and\\\\\\\] then disregarding that advice, then things aren’t working.” Most disagreements can be settled through negotiation, communication and compromise, rather than a complete dissolution of the management/board relationship. “I have had a few accounts where board members were disrespect- ful at best, and downright rude at worst instances,” says Hugh Shaffer, General Manager of Harbor Towers Condomin- ium via Barkan Management in Boston. “After numerous attempts to alter that behavior, I’ve had to severe ties. But in other instances, the problem boiled down to a personality conflict where I needed to swap out one manager with another simply because of a misunderstanding. Most of the time, this type of exchange was all that was needed in order to trans- form a bad environment into a healthy one.” “The boards we work for consist of dedicated volunteers. But as with all volunteers, they require leadership and guidance,” Wood adds. “While this can come from our team, we find it works best with a peer leader who can act as an intermediary, thus taking the man- ager out of any personality clashes. But when that doesn’t work, we might have to consider ending the relationship. In the past, we’ve found ourselves sticking with a client even if that client was putting us into a liability situation via bad decision- making – which in hindsight is crazy.” Breaking up with a board is a tough decision, but one that a manager must be equipped to make. “You have to as- sess whether working for an association is profitable enough to warrant any el- evated stress,” says Ellen Kornfeld, Vice President of the Lovett Group of Compa- nies, a real estate management company in New York City. “You’re dealing with individuals with their own issues and their own egos.” Calling It Quits Despite their best efforts, more than a few property managers have experienced relationships with boards that have dete- riorated to a breaking point. Fortunately, all of those surveyed have survived to tell the tale. “We just parted ways with a client that wanted to see ‘more violations,’” says Christopher R. Berg of Independent Association Managers in Naperville, Il- linois. “Personally, I felt that not having unresolved compliance matters was a sign of good management,” Berg contin- ues, but apparently the board president felt differently. “When the president, in an open meeting, took to repeatedly at- tacking and demeaning me personally while simultaneously patting themselves on the back for their record-low delin- quencies, I left with the intention to can- cel the contract. Over the next few days, the sting of the emotional abuse faded, and I looked for new ground from which we could work. But soon thereafter, I was greatly relieved to receive a cancellation notice from them.” Some management/board dynamics implode before things even have a chance to get going. “In the worst case we’ve had to date, we were told by an associa- tion – after being hired only two weeks INSURANCE/BOARD TRAINING ISTOCKPHOTO.COM Why Managers Quit When the Board-Manager Relationship Goes Sour BY MIKE ODENTHAL continued on page 12