How to Select a Management Company

(00:00) Speaker: It’s time for HOA Solutions today. This is where you'll find news, tools, and trends for con-dominium and association leaders.

(00:09) Speaker: There are so many things that are out of our control in the association industry where it's either hard or difficult or sometimes impossible to be able to do the right thing.

(00:21) Speaker: And now here's your host, Paul K.Mengert.

(00:25) Paul K. Mengert: This is the HOA Solutions Today podcast. Our topic for this episode is how to select a management company. I'm pleased to have Joselin Paz, our special guest today. Joselin is the director of client services at AMG. She's primarily located in Greensboro but serves the entire Carolina area. Joselin is a CMCA and her primary goal and job is to help clients find the right fit with a management company. She was one of the youngest members of the AMG Executive Committee chosen as the Triad Business Journal of Rising Stars under the age of 30. Joselin, congratulations.

(01:04) Joselin Paz: Thank you, Paul.

(01:06)Paul K. Mengert: It's so nice to to have you here today to talk a little bit about something that I know is very important to you, which is helping associations find the right fit with a management  company and maybe guiding them a little bit about if you were helping your mom's association or helping your mom as a director of an association, what would you tell her to look for in that company? And I'm just going to ask you a few questions today and share with our audience your perspective. So let's just jump right in. Tell me the three main things you think board members should consider in evaluating a management company.

(01:47) Joselin Paz: What I typically tell our board members looking for a new management company and evaluating those management company, I typically recommend having what I call the three E's, which is experience, evaluations and expertise.

(02:02) Paul K. Mengert: Well that Sounds like a pretty simple formula to remember. Of course, management companies come in all shapes and sizes and a lot of different approaches. And, you know, I always say there's no right way or wrong way to do things. So, Joselin, before we go too much further into this, tell me a little bit about yourself and what's your passion?

(02:24) Joselin Paz: Yes. So I was born in Honduras, came to the United States, about eight years old, lived in Rhode Island, smallest state in the United States. And then we moved to North Carolina, where I have resided here since in Greensboro and went to the University of North Carolina in Greensboro. And I graduated with a bachelor's degree in psychology, which I've always been passionate about since as long as I can remember.

(02:52) Paul K. Mengert: I can certainly see where that would be helpful in the in the association world. But I think a lot of people that get into the association management profession really care about helping people. And I know you've done a lot of volunteer work and also headed up some of the charitable initiatives that AMG's worked on. Just give our audience maybe a quick second or two on some of the charitable things you've been involved in.

(03:20) Joselin Paz: Yeah, definitely. Here in Greensboro, I've been involved with many projects with AMG. Some of those include Roc solid, PTI Run and the Runway, First Family Services, and many different projects that we're giving back to the community constantly.

(03:37)Paul K. Mengert: Of course, I know a little bit about all of these, but particularly highlight Rock Solid, which builds playground sets for children suffering from cancer. And I know AMG and a group of our clients have participated with you in that, and we've got a project coming up again pretty soon. And where is that located?

(03:57) Joselin Paz: We're actually doing it this year in Rock Hill, South Carolina. Last year we were in Winston-Salem, which was a great project that all of our staff and our team and truly enjoyed just giving back to the community. And it was very close to my heart because the family was from Honduras and they spoke Spanish. So I was able to relate and had a great connection with the family and the child. Jennifer that was her name.

(04:25) Paul K. Mengert: Yeah, we've got a great video. If our audience has time to look at that video, maybe they can link it in the podcast information field. Jocelyn As you know, we take some quick news breaks during these podcasts, but when we come back, I'm going to ask you to tell us a little bit more about the Three E's HOA Solutions Newsbreak. Thank you, Jocelyn. We're now going to go to Take an HOA Solutions Today Newsbreak.

(04:51) Speaker:And now it's time for your HOA Solutions Today Newsbreak.

(04:55)Newsbreak: Despite Georgia's law requiring dams to stay safe and up to code, nearly 200 dams were found to be. As high hazards and in poor condition. With over 5400 dams. Georgia is home to the fourth highest number of dams in the country, with statewide upgrades and repair costs to prevent failures in the millions per dam. The dams failing could cause major flooding to occur in HOA's, causing homeowners to investigate other alternatives, including removing their dams altogether, even if it means eliminating the lakes nearby and lowering property values. To read the full story, go to HOASolutionstoday.com.

(05:30) Paul K. Mengert: We’re Back. I'm Paul K.  Mengert and we're here with Joselin Paz discussing how to select a management company. And Joselin, I think you were going to tell me a little bit more about the three E's? What do you look for with experience?

(05:43) Joselin Paz: Yes. So when board of directors are evaluating management companies, experience is one of the major areas they want to focus on. It demonstrates how successful property management companies can handle the various situations that may arise with associations which can vary by the community, whether they're small, big, townhome, single family condominiums. So definitely looking at that will tell you what kind of management company they are.

(06:10) Paul K. Mengert: And how about evaluations? Where do people look to find out evaluations of management companies.

(06:16) Joselin Paz: When evaluating the management companies, One of the areas that I definitely recommend to someone like my mother or an aunt that lives in an HOA is looking at the Google reviews, Google reviews, the Better Business Bureau. There you can see how clients feel about their management company, whether they're current or older clients. You can always ask for references from the management companies. Usually these will be included in a proposal, a list of communities that will tell you what their experiences are.

(06:49) Paul K. Mengert: When you look at Google reviews. Interesting you mentioned that. What about the people that are angry and have had their car towed or mad because they're been turned over to the attorney because they've done something against the rules? How does a prospective client take that into account in evaluating management company? Well, I think the people serving on the board of directors really understand that not everybody in the community is always going to be happy. But I think what you're looking for is the preponderance of people that are happy. And sure, part of the job involves towing cars and collecting against late payers and board members want the manager to do all these things. So I think a knowledgeable board member knows that not every homeowner can be satisfied. But if you've got 51 star reviews, it certainly tells you something. If you have hundreds of good reviews and a few dozen bad reviews, that's probably how it works.

(07:45) Joselin Paz: Yeah, and if you have a management company that has, you know, a perfect five star, then there's something that is wrong there. You better look into it some more. So definitely those negative reviews can also tell you how that management company is handling those situations.

(08:02) Paul K. Mengert: Oh, that's a great point. So it's not only what the review is, but it's how you respond to the review.

(08:07) Joselin Paz: Correct.

(08:08) Paul K. Mengert: And the final E was expertise. What are some of the measures of expertise? Because of course, everyone tells you they're qualified.

(08:18) Joselin Paz: Definitely. There's a lot of management companies out there. They'll tell you, Yes, we know what we're doing, but in reality they don't have the qualifications. And sometimes some of the qualifications that we have here in North Carolina is through CAI, the Community Association Institute, and they provide the certifications for each of the managers from the beginning, which is the CMCA, which is the certified Manager of Community Association, and it goes all the way up to a PCAM and these are very complex certifications. They go through many classes and many tests that they have to go through to determine if they're qualified to be a community manager. So definitely looking for those whenever selecting your management company. Also you want to make sure that that management company is looking to continue that education, that managers are attending these conferences and are up to date with the legislation in the state and many other educational opportunities.

(09:18) Paul K. Mengert: Tell everyone what the AMC acronym stands for.

(09:21) Joselin Paz: So the AMC acronym stands for Accredited Association Management Company. And this is a credential you want to look for when selecting that management company, I would say is one of the top priorities.

(09:32) Paul K. Mengert: Interesting. And just to put in a little plug for Association Management Group, I believe by virtue of being letter A, when CAI came out with the accreditation many years ago, I believe Association Management Group was the first company in the in the country accredited. So that's quite an accomplishment. But of course over the years there now are quite a few companies, but that's one thing I would agree with you. Good thing to look for. Well, we have another news break, so hold further thoughts for the HOA Solutions Today Newsbreak.

(10:13) Speaker: And here's another HOA Solutions Today newsbreak.

(10:17) Newsbreak: With the hopes of making it more difficult for corporations to buy up units to eventually take full control of the property. An HOA in Skokie, Illinois, has voted to raise the condo deconversion approval threshold from the state's required minimum of 75% to 85%. This makes Skokie, the first Illinois municipality outside of Chicago to increase the percentage of condominium unit owners in a building who must consent to the for sale for individual ownership to an apartment building with a single owner. This process will help keep Skokie affordable for potential renters. Let us know your thoughts on deconversion by leaving a comment at HOASolutionsToday.com.

(10:58)Paul K. Mengert: Welcome back, folks. I'm Paul K. Mengert here discussing how to select a management company with AMG's director of client services, Joselin Paz. Joselin, thanks so much for spending the time with us this afternoon. You mentioned industry designations. Talk to me a little bit about how you believe that drives satisfaction and whether companies who have the designations really can get more satisfaction than maybe someone with less experience.

(11:26) Joselin Paz: Yeah, definitely. I believe that these professional development certifications provide the reassurance that the company has a knowledge and the skills to handle these complex property management tassk.

(11:37)Paul K. Mengert: So when you're talking to a prospective client, are you trying to find out what they need? And do you typically ask them what their top priorities are?

(11:48) Joselin Paz: Yes. One of the major questions that I asked them whenever having those initial conversation is what are you looking for in a management company? What are your needs? That way we can determine if we're a good fit as well as a management company for this client, because not everything is going to be a good fit or perfect fit.

(12:06) Paul K. Mengert: What do you find they are looking for?

(12:08) Joselin Paz: Definitely, I would say the major one that they're looking for is communication. After that, you have experience. They want guidance.

(12:18)Paul K. Mengert: They're looking for people to call them back and to answer emails and to be responsive.

(12:23) Joselin Paz: Definitely responsive, even if it means you may not have the answer at the moment, but they just want to get an email back that says, Hey, I've received your email looking into it right now.

(12:34)Paul K. Mengert: So, number one thing people are looking for is callbacks. Seems pretty basic.

(12:40) Joselin Paz: Yes, Call me back or email me back.

(12:43) Paul K. Mengert: Yeah, hard to imagine that. That's a that's a difficult box to check. But I know over the years we've heard it a lot. What about planning and how many clients are worried about particularly with the building collapse in Florida last year? Do you hear a lot of people talking about worried about deferred maintenance and companies that can help them work through some difficult maintenance situations?

(13:08) Joselin Paz: Certainly, I feel like a lot of board members are looking for that manager that can have that guidance to guide them through situations like that. You're having communities asking for more site visits, preventative maintenance in their community to ensure that a situation like that can be avoided.

(13:26) Paul K. Mengert: You know, think that you take a lot of calls from people coming in hard to understand how a manager might not call people back. I mean, what do you think happens? Why would that be?

(13:39) Joselin Paz: Well, I think a lot of managers get so wrapped up on everything they have to do for the community they feel action item needs to get done before I even respond to this email. But sometimes they just are looking to know that, hey, I received your request. So they get that piece of mind and it's an easy email or I don't have the answer. I'll get back to you once I've looked into it. Simple answers like that. I mean, with technology nowadays, it's so advanced that people want to even quicker response just because everything is just at the palm of their hands. Their phone is right there.

(14:11) Paul K. Mengert: Yeah, I know. One of the things you've been pretty passionate about is to help AMG develop systems that answer the concerns you've heard from prospective clients so that a client doesn't change from one company to another and end up here and have the same kind of dissatisfaction they've you know, they had to begin with.

(14:33) Joselin Paz: Yes, I know. Some of the things working on right now currently actually is our chat bot in our main page where we can satisfy that quick response that people are looking for, being able to predict what these questions will be and giving those answers without having someone there. So I mean just can focus on those bigger tasks that are going on in the community.

(14:56) Paul K. Mengert: Yeah, that's really interesting how technology and automated intelligence and chat bots, I mean, we all kind of roll our eyes, but if it can give me the answer I need, I'm a Happy guy, right?

(15:10) Joselin Paz: There you go. I Mean technology is just advancing. We just got to move forward with it. If not, we stay behind.

(15:16) Paul K . Mengert: We're going to take one Final Solutions newsbreak. Thank you, Jocelyn.

(15:24) Speaker: And now our final HOA Solutions Today Newsbreak.

(15:28) Newsbreak: A Delaware HOA was recently found to be without power after finding a homeowner that built a shed without obtaining board approval. It then came to light in court that the HOA failed to properly transfer control from the developer to the association, meaning it never actually had control over its homeowners. Luckily, the loophole in state law that previously allowed issues like this to happen has since been closed. But this court case is used as a reminder to HOS's to be vigilant on meeting with developers to accurately document the handoff of control. Let us know your thoughts by leaving a comment at HOASolutionsToday.com.

(16:07) Paul K. Mengert: So let me ask you this, you've been client services director at AMG now for several years. About how many clients do you think you've and I know I'm putting you on the spot about how many clients do you think you've onboarded?

(16:22)Joselin Paz: Um, to date, I would say, goodness, I want to say on our list right now, I probably would say it's about 70% of the clients are not lives that probably have worked on to on board.

(16:36)Paul K. Mengert: So, you're talking about out of dozens of clients you've brought on board, nearly all of them have been very satisfied and stayed with AMG.

(16:46)Joselin Paz: Wow. I want to say at least 90% of them are still with AMG. Pretty satisfied. I mean, till this day I hear associations that were changing management companies every year tell me how satisfied they are with their manager and the quick response that AMG has to offer. And you know, once they fall in love with our managers, they fall in love with our company.

(17:07) Paul K. Mengert: And AMG doesn't just take every client mean of the ones that call up or email you, what percentage do you think we or AMG has to say We don't think you're a good fit for us.

(17:19) Joselin Paz: So, we have a very Strict qualification, I guess you can say, where we evaluate the client to see if they're a good fit for us as well, which is why we have a rigorous process of asking certain questions to the client. And I want to say we probably bring on 10% of the clients that we actually speak to because we're very specific on who we want And we want to know also that they're a good fit with our managers. So both the client in our staff are happy.

(17:52)Paul K. Mengert: I'm really glad we've gotten to talk about this because I think this is somewhat the heart of where your passion lies is it's not just trying to get everybody to sign up. You're really looking for people who are going to be a good fit. And so that we can really genuinely help people. Because I know at AMG we we kind of preach this, but we're doing what we're doing because we want to help people have a better place to live. And we know we're not going to be the right fit for everybody. Somebody some do not want the kind of services and the boutique type of services that AMG offers. And, you know, frankly, part of your job is, you know, figuring out who doesn't want or need or appreciate the kind of services we want and letting them know that maybe is not the best fit for them.

(18:40)Joselin Paz: That's right. Yeah. Not everyone is your soulmate, right?

(18:44)Paul K. Mengert: Yeah. Well, Jocelyn, you're a you're doing terrific in your in your work. I know our industry is proud to have young, qualified folks like you in the association management business. And, you know, genuinely out there every day, not just trying to help one company, but really trying to help community associations across the board find the right fit for them and the right services for their community members.

(19:16) Joselin Paz: Yes, I agree 100%. It's one of our biggest passion. It's one of my passions. I love helping people, making sure that they're proud of where they live, and that's what we strive for.

(19:26)Paul K. Mengert: As you know. To close out our podcast, I usually like to come up with three points that people can really have as takeaways to remember what we were talking about today. And Jocelyn, thank you very much for helping us with this topic and the three E's of choosing an association management company. Jocelyn, do you have a final thought?

(19:52) Joselin Paz: All I can say is I agree with everything you just said. Remember the three E's experience years in business evaluations? Look at those Google reviews expertise. Look for the designations.

(20:03)Paul K. Mengert: This is the Solutions Today podcast for more news tools and trends, please visit  Www.HOASolutions today.com and subscribe to our series. I'm Paul K . Mengert and until next time we'll see you on the podcast. Jocelyn Thank you very much.

(20:24) Joselin Paz: Thank you.

(20:26)Speaker: Thanks for listening to HOA Solutions today. Find more information on today's topic online at HOASolutionstoday.com.

(20:36) Promotional: This podcast is a production of BG Ad Group. Darren Sutherland Executive Producer. Doug Hardin, Creative Director. Jacob Sutherland, director producers Jason General and Matt Golden and Jen Rae Jang video producer. All rights reserved.

Hundreds Of Aging Georgia Dams Sit Upstream of Homes and Major Roads—and Are in Urgent Need Of Upgrade And Repair

Despite Georgia’s law requiring dams to stay safe and up to code, nearly two hundred dams were found to be as “high hazards and in poor condition.” With over 5,400 dams, Georgia is home to the fourth-highest number of dams in the country, with statewide upgrades and repairs costs to prevent failures in the millions per dam. The dams failing could cause major flooding to occur in HOAs, causing homeowners to investigate other alternatives, including removing their dams all together, even if it means eliminating the lakes nearby and lowering property values.

New deconversion threshold to combat corporate investors

With the hopes of making it more difficult for corporations to buy up units to eventually take full control of the property, an HOA in Skokie, IL has voted to raise the condo deconversion approval threshold from the state’s required minimum of 75% to 85%. This makes Skokie the first Illinois municipality outside of Chicago to increase the percentage of condominium unit owners in a building who must consent to the forced sale from individual ownership to an apartment building with a single owner. This process will help keep Skokie affordable for potential renters. Let us know your thoughts on deconversion, by leaving a comment.

HOA Found to Have No Control Due to Developer's Oversight

A Delaware HOA was recently found to be without powers after fining a homeowner that build a shed without obtaining board approval. It then came to light in court that the HOA failed to properly transfer control from the developer to the Association, meaning it never actually had control over its homeowners. Luckily, the loophole in state law that previously allowed issues like this to happen has since been closed, but this court case is used as a reminder to HOAs to be vigilante on meeting with developers to accurately document the handoff of control. Let us know your thoughts by leaving a comment.