May 15, 2009

Make sure you don't wing it with your management company. Instead, have a written contract that spells out which services your management company will and won't provide, how often it will provide the services, and the fees the company will charge.

"The most common complaint I get is about the management company's failure to provide accurate and timely financial reports," Michael S. Hunter, an attorney and partner at Horack Talley in Charlotte, N.C. To prevent this headache, state in the contract that your condo or homeowners association needs accurate financial reports by specific dates—such as the 10th of every month—and that the failure to meet that requirement will be considered a material breach of the contract.

Also make sure you carefully review the termination provision. "If the association isn't happy with the services provided, make sure you can quickly and inexpensively terminate the contract," Michael advises. "In some cases, the management company will insist on an early termination fee during the first 12 months usually totaling one to three months of its fee."

Best regards,
Matt Humphrey
President