There comes a time when there is need to switch a property management company. This is usually with a focus to hire another one due to various reasons. In most cases as in townhouse associations, there are always three major reasons to change the property management company. These include:
- lack of commitment,
- low levels of customer satisfaction,
- natural causes where a company deploys a new board and they just decide to replace the property management company.
However, it does not matter what the reason might be, the right protocol must be followed to ensure the best practices at all times. These include:
On deciding that the current management team should leave, proposals must be solicited by the management search committee. In the process, the prospective applicants are supposed to meet with the committee which usually consists of a director, non-director, and a past officer.
Secondly, specifications for the job should be prepared so as to make the bidders aware of the full spectrum. The range of services offered will thereby be determined by the type of association. Therefore, the committee must ensure that funds are used appropriately.
According to the most common practices of many owners association management companies in Dubai, the third step of switching the association managers requires that the committee should make decisions as early as possible. This helps determine various important matters concerning the situation. For instance, they can be able to decide whether to deploy a bigger or a smaller company to the previous one.
The termination process must be done appropriately since it can be a risky move. In that case, the existing contract should be properly reviewed by the fourth legal counsel prior to any decisions. This also determines the requisite timeframes, penalties, and many more.
Finally, in an event where the specifications have been submitted, the UAE company states that the board of directors must be recommended. This is, however, after the specifications have also been properly reviewed by the committee and the possible replacement candidate has been revealed. Thereby, the choice will be determined by two factors: by interviewing the finalists or by the recommendations from the committee.
In summary, changing management companies can be hard but with genuinely written rules, it is very easy. It is recommended that the rules must be reasonable to everyone including the community as a whole. Management companies are, therefore, best if changed towards, or at the end of the contract.