1.
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Don't hire a company just because they submitted the lowest price. All the bids should be within 10% of each other.
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2.
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Have the corporation lawyer review and make any necessary changes to the contract.
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3.
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Check court records online to check on any lawsuits the company may have been involved in. |
4.
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Insure that when on site, the
manager is working on your condo's business and not on working for the
other condos that she manages.
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5.
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The board should keep its own
e-mail account and website so they will remain active if the corporation
changes management companies.
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6.
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When hiring a management
company, the directors should ask if there are any extra service fees;
what are the printing and postage costs, fees to attend extra board or
owner meetings and any other hidden costs.
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7.
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Finally, mandate that any management company hired by an HOA certify
that it has insurance against all misfeasance and negligence by
management company's owners, executives or employees. |
8.
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Ask if the company has a manager, presently on the payroll, that will be assigned to your building.
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9.
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After
picking the company, interview the manager that will be assigned to
your corporation to make sure you are comfortable with him or her.
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One manager, that was assigned to an upscale condo in downtown Toronto,
had his house up for sale by the bank six years before the PMC hired
him. A quick look on the Internet brought this up. Two years later, the manager was fired for corruption. |
10.
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The board hires the corporation lawyer and the auditor and keeps them independent from the management company.
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11.
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The corporation has its own separate bank accounts. It does not have its money pooled in the management company's accounts.
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12.
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Ask if the property management company also manages individual rental condo units. If so, this can cause a conflict of interest.
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13.
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Ask
if the company, or its employees, accept finder fees or commissions
from suppliers, energy re-sellers, insurance brokers or contractors
without disclosing this to the boards.
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