Running the day-to-day business of a condo development or an HOA of any size—be it a sprawling, multi-building community, or a single self-contained building—requires not just a functional board but a team of competent outside professionals. These professionals keep things running smoothly and efficiently for residents and boards—from the legal counsel who advises board members on their responsibilities under the law to the accountant who balances the books and keeps tabs on the building’s assets to the property manager who juggles board, resident and municipal concerns.

Since the professionals working for your building community are so essential, it’s critical that you as a board collectively choose the best people to work for you, whether as an attorney, accountant or manager. Figuring out how to choose those people is the difficult part however, as there are hundreds of professionals in each market, all clamoring for your community's dollar.

The Decision-Makers

While just about everyone in your association or building will have an opinion on who should be hired to do a particular job for the community, ultimately that's a decision made by the elected board. Board members get to figure out which management company to select, along with which accountants, attorneys and other professionals to hire, says Andrew Fortin, senior vice president of external affairs at Associa, an association management company that is North America’s largest property manager.

“The board should give special thought to how each professional level service provider is hired, and should engage in due diligence to confirm professional licenses, uncover any ethics complaints or other potential red flags,” Fortin says. “Some management companies offer pre-screened vendors that the association may choose to use if they wish. This can be a benefit to the board, as many of these vendors are pre-screened to ensure they are fully licensed and insured.”

In some jurisdictions, state law requires that any service to a community above a certain dollar threshold—say, $5,000 or above—must be obtained through a competitive, sealed bid process, Fortin says. Once the condo board decides on its management company, the management can look for the other professionals via bids or via their own recommendations.

“As property managers, we assist and give contact information for professionals,” says John Thiboutot, CMCA, the vice president and portfolio manager of The Niles Company Inc., in Canton, Massachusetts. “Boards should meet with and choose their own attorneys and CPAs. The CPA is the most important professional that the board can choose, as they are responsible for the independent review or audit of the financials of an association.”

“We never recommend accountants to boards because that would be recommending someone who is going to audit us. In Massachusetts, any association with more than 50 units needs to have a review done by an accountant. So we don’t get involved in that selection process,” says Richard E. Stern, CAM, the president of Sutton Management Company Inc., in North Andover, Massachusetts. “We let the board pick their own accountant and oversee our work. As far as attorneys go, we work with a lot of different attorneys. We may recommend several attorneys that they can choose from. We do the vetting process and provide them with qualified proposals and bids and in most cases the board selects from those bidders.”

Typically, before any decisions are made, the board must take a vote—and each board member’s vote typically has equal weight, regardless of their position within the board.

“In self-managed communities, I would hope that hiring decisions are done by the board in a similar fashion, meeting with and hiring an independent firm,” says Thiboutot. “A self-managed board should never get involved with nepotism as this is the easiest way to get into trouble.”

Any important decisions and policies, such as which professionals should manage the building, are made and set by a vote of the board of directors, and unless a long-term contract exists with the manager or other professionals, all professionals serve at the pleasure of the board of directors.

Community Input

Non-board members rarely get involved in the process,” says Thiboutot. “Occasionally a non-board member resident will make a suggestion on a firm, or an ad-hoc committee is formed to interview potential firms,” he says. “But more often than not, the board is the one interviewing and making the final decision.”

“Residents who are not on the board rarely get involved in the hiring process,” adds Stern. “Over the last 20 or 30 years they may have provided some vendor’s names to us and we got pricing from them, but that’s about the extent of it.”

Non-board members do have some say, however. While the board has 100 percent decision-making power when it comes to the vote, residents have the right to speak at the meetings so they can make their feelings known.

References, Please!

When boards or associations choose a professional, the board—or the search committee appointed—shouldn’t simply do a Google search and select the least expensive company. They should check licenses with the state, and, most importantly, check references from other properties.

“A board should look into each company as best they can by doing research on the companies, determining what the associations needs are and seeking which firm is the best fit, interviewing the firm and the manager that will be assigned to the association and reviewing sample documents such as monthly financial statements,” says Thiboutot. “Each board is different in the process. Some are extremely formal while others are loose. Interviews are the best way a board can determine if the business relationship is a fit.”

“Checking if they are licensed and insured is the absolute minimum,” adds Stern. “After that, it’s looking at the work and their reputation in the community. In 20 or 30 years you’ve certainly come across the good vendors and weeded out the bad ones.”

Most professionals should be licensed or credentialed—and this includes community managers, attorneys and accountants—but you should also check to see whether their licenses are current, and also to see if any complaints have been filed against them, Fortin says. Most licensing agencies or bar associations can provide this information.

Licensed and Bonded

Fortin goes on to say that it's critical that the board ensure that vendors have the appropriate bonding and workers compensation insurance in place to protect the association from mishaps.

“I have seen instances where a community hires a local handyman to help with the landscaping, and the person does not have insurance or proper bonding,” he says. “The vendor is injured on the property or damages a home, and the association is on the hook for the damages.

Professionals also caution that word of mouth is where you can start, but research is essential. Angie’s List may work for small companies, but larger companies generally get referred through word of mouth or industry professionals.

A Good Fit

The professional dealing with your building or HOA must also click socially and professionally with the board, because you'll be working together closely on personal and business matters.

“Anyone who deals with residential matters should have an outgoing demeanor, be pleasant, and look professional,” Fortin advises. “Professional association memberships are a good sign that the professional or his business support the industry as a whole, and educational credentials provide evidence of an investment in their skill set and also can provide recourse should the professional not live up to their obligations.”

For example, if you aren’t satisfied with the work done by a professional working for your community, a resident or board member can file a complaint against the individual or company with a professional designation issued by a trade group.

However, says Fortin, “The bottom line is that the evaluation process should look at the totality of factors available that included professional designations, word of mouth, and references.”

“Interviewing firms and checking references is a start but making sure they are familiar with how condominium and HOA associations operate and the laws that they are governed by is the most important,” says Thiboutot. “There are many good attorneys and accounting firms, but not all of them are familiar with the nuances of condominiums and HOAs.”

“In the state of Florida there is a vetting process and you have to be licensed; here in Massachusetts there isn’t that process. I wish there was. You can have convicted felons who are property managers, which is unfortunate,” says Stern. “I would do some background research on the individual who is going to be managing the property, but first I would get referrals from other associations.”

According to experts, once the board selects a company for any job, they should sign a contract with that company, though the cancellation terms will vary. A good company will generally give you a 30- or a 60-day cancellation clause, though some companies will prefer to lock associations or communities into longer-term performance-based contracts.

You’re Fired

Contracts can be cancelled, but you do have to be wary of contract provisions already in place before doing so, Fortin says. Even if there is dissatisfaction, it’s hard to break the terms of the contract unless extreme measures are taken.

“The professional contract usually spells out the terms by which the contract should be terminated, and these terms should get close review prior to signing the contract,” Fortin says.

“The role of the board is to set the direction for the property,” says Stern, “Then it’s the property managers’ job to carry out that direction. We work for them and take their direction.”

Certain types of repairs and services are prone to contract disputes. You just have to trust that your board and management team have made a good decision, and shut the door on the subject.                            

Danielle Braff is a freelance writer and a frequent contributor to New England Condominium. Staff writer Christy Smith-Sloman also contributed to this article.