8 Steps 2.18.2021 Jeremy spread

8 Steps for Choosing a New
Property Management Company
Considering your options when changing
management doesn’t have to be a maze.
By aligning all board members and determining your needs at the start of the process, your
board will be better prepared to select a new management company that can effectively
meet the unique needs of your property. Here are the steps we suggest taking, along with
sample conversation starters to share with other board members, that will help you be to
fully prepared to embark on the best path forward.
START
IDENTIFY
EXPLORE
CONSIDER
MEET
VISIT
CHECK
SELECT

Step 1:
Identify Your Needs
If your board is dissatisfied with its current
management company, we suggest speaking
with the company’s senior management and
ownership to give them an opportunity to
correct the deficiencies. If they fail to
take the necessary steps to address
the problems, it may be time for a
change.
Consider how your existing company has
not satisfied the day-to-day and unique
needs and requirements of your building.
Recognizing these shortfalls will help your
board identify the service offerings and solutions
required from your future management company.
Start the Conversation:
“Our board is essentially handling our day- to-day property
operations because our current manager lacks the skill set,
support and resources.”
“Since COVID-19, our service has
dropped off considerably and the lack of
notifications and updates is concerning.”
“The board appreciates being involved in
making decisions, but it feels like we’re
missing out on resources and financial
savings.”
“Over the last year our property manager
has become much less proactive in
communicating with our board and
shareholders and our management
company hasn’t addressed our concerns
after we contacted senior management and
ownership. Should we take the next step
and start searching for a new management
company?”
©2021 FirstService Residential. All Rights Reserved.

TOP THREE REASONS BOARDS
CONSIDER NEW MANAGEMENT
The first step is to
understand how your current
management company fails to
serve the needs of your board and
residents. Aligning with the full
board on the issues is critical for a
smooth decision-making process.
Not all board members may agree,
so communicate your opinions
clearly and share what you
believe the ultimate benefits
to your property will be.
1. Quality Management – An unresponsive property
management company, failure to address task lists,
compliance violations and fines, inaccurate financial
reporting, inadequate staff training, or lack of
communication and technology resources are
just a few reasons to consider a change.
2. Cost Savings and Increased Revenue– Is
your current company helping you find
ways to increase revenue (additional
ancillary fees, convert unused spaces)
or reduce costs? Consider your reserve
investments, borrowing costs, supplies and
service providers, insurance, real estate taxes,
contracts and utility rates – if you are spending
too much you may want to look elsewhere.
3. Capital Projects – Your last capital project
was poorly executed, improperly budgeted and/
or creatively financed, and now there is the threat of
litigation because inadequately-insured vendors were
used. With several additional projects slated, you want to
make the change well before they get underway.
©2021 FirstService Residential. All Rights Reserved.

Step 2:
Choose to Explore
Your board is responsible for
making critical decisions,
creating policies, and laying a
cultural foundation for your
owners and their families.
If your board has found
that your management
company is not equipped
to render adequate
guidance and support based
on industry experience, it
may be time to begin to explore
alternative companies that can
provide the level of service and
solutions required for your property.
Start the Conversation:
“It feels like we can’t rely on our
management company to follow through
on our property’s day-to-day tasks, and
we’re getting nervous about how they will
handle our upcoming capital projects.”
“Our friends live in a FirstService
managed property and they receive
frequent updates about the industry and
things that affect us.”
“Does our management company have
the resources to enhance our property
values, reduce operating costs and
improve the lifestyles of our residents?”
A lack of direction and support from
your management company can
frustrate your decision making or
facilitate costly mistakes given the lack
of immediately available resources. In
turn, your residents may lose confidence
in the board’s ability to protect their
interests.
©2021 FirstService Residential. All Rights Reserved.

Step 3:
Consider Your Options
Now that you’ve identified your needs, and the
board is aligned that a change may be needed, the
research process can begin. Narrow down your
findings to a list of three to five companies
that you feel can offer the right mix of
resources and solutions for your property.
Remember, a “one size fits all
approach” to property management is
typically ineffective. Speak with industry
professionals, such as your property’s
attorney and accountant, or board members of
neighboring buildings to get recommendations.
Focus your research on what best practices and
resources will help solve your property’s issues or
take your building operations – and reputation – from
good to great.
©2021 FirstService Residential. All Rights Reserved.

Step 4:
Arrange a Meeting
While your first impulse may be to obtain a price
comparison or initiate a formal RFP process, this
approach will only compare companies on an estimated
base management fee and organizational level that will not
provide any personalized solutions to your property’s specific
challenges.
Once you’ve narrowed down your list of potential management
companies, schedule a virtual discovery session to get an
overview of each company’s experience managing properties
similar in size and scope to yours. An ideal discussion will
illustrate how their team can solve your unique challenges
and meet or exceed your expectations. Be wary if the
managing agent you’re speaking with is only able to
provide an overview of their company. You want a
company that can offer clear and definitive
solutions to your specific issues that will
benefit your board and property.
©2021 FirstService Residential. All Rights Reserved.

Following the discovery meeting,
if the board feels the management
company is a contender, the board
should consider sending the
company the most recent
audited financial statement.
It’s part of the due
diligence process and
will give the company
an opportunity to
understand your
property’s finances
which is an important
supplement to the physical
review conducted during the
property walk-through.
Your building is unique and there
is no such thing as a one size fits
all approach.
Getting Organized Before Your Meeting:
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Get aligned with your board on
what you really need from your
management company.
Take time during a board meeting
to discuss what questions you
need to ask and narrow down these
questions to your top must-haves.
The questions should be tied back
to the problems with your current
management company that you’ve
identified.
Use our Property Management Checklist to
help you evaluate the resources, expertise
and services offered by each management
company under consideration.
©2021 FirstService Residential. All Rights Reserved.

Step 5:
Schedule a Building
Walk-through
Start the Conversation:
“Let’s invite them to visit our property so that we can meet
the team in person, see if we are a good fit for each other, and
discuss some potential solutions.”
Win-Win
The property walk-through is a crucial step in communicating
the unique needs of your building. The conversation may
even uncover new solutions to your challenges or reveal
opportunities for improvement not previously considered.
Whether you go with the company or not, use this visit
to your advantage.
©2021 FirstService Residential. All Rights Reserved.

Step 6:
Review the Proposals
The proposals you receive should, at a minimum, answer
each of these questions:
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How long have they been managing properties like
ours?
Can we assess their financial stability?
Do they employ property managers who are the
right fit for our property?
What types of training and educational programs
are provided for property managers, board
members, and building staff?
What types of communication technologies are
available to the property managers, board and
residents?
©2021 FirstService Residential. All Rights Reserved.

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When it comes to local law
compliance, does the company have
in-house subject matter experts to
support its managers?
Does the company offer support in
legal matters?
What unique solutions and resources
do they offer that will reduce our
operating costs?
Does the company provide
24/7 customer service for both
emergencies and general inquiries?
What is their transition process
when bringing on a new property?
Can they provide references?
Does company leadership hold
prominent positions in industry
leading organizations?
©2021 FirstService Residential. All Rights Reserved.

Step 7:
Schedule a Formal
Presentation
Start the Conversation:
Barring any pandemic-related restrictions,
it’s also important to visit the management
company’s offices. Getting a first-hand look
at how they manage their business will provide
some insight into how they will manage your
property.
“Do they have in-house subject matter
experts and partnerships with service
providers that will really add value to
our property?”
Be wary of a company that offers only
generalizations about their approach
to managing your property. A quality
management company will present
specific solutions to address your
unique challenges, and resources
that match your expectations.
Ask Yourself
“Did the presentation
respond directly to the needs
and vision we communicated?”
“Do they have in-house subject
matter experts and proven solutions
that will really add value to our
property?”
“Are we confident they have the internal
support and resources to meet our property’s
high standards for responsiveness and
service?”
©2021 FirstService Residential. All Rights Reserved.

Step 8:
Consider Your Options
Start the Conversation:
“Is everyone on the board on the same page with this
decision? Let’s all agree to talk through any pros and cons
before we sign.”
Finish Line:
If your board follows these steps closely, the final decisionmaking
process will be the easiest step. Alignment with your
board, research, a building walk-through, and meeting the
team are key to paving the way to a confident choice.
Are you ready to consider new management for your
property? Let’s talk!
Click here to request more information from FirstService
Residential.
©2021 FirstService Residential. All Rights Reserved.

Let’s talk.
Call me today to set up a time:
JEREMY COHEN
Business Development Director
Manhattan Office
212.324.9945
jeremy.cohen@fsresidential.com
Whether during times of crisis or managing everyday
matters, the support you receive from your property
management team is invaluable. To ensure your
board is getting the best service, use this checklist
to evaluate how your management company is
helping your board and property navigate your
unique issues.
Making a Difference. Every Day.
©2021 FirstService Residential. All Rights Reserved.