Community Management Professionals, LLC. - Choosing a Management Company

Choosing a Management Company

Part 1 – General Information

1.	How long has your company been in business?
	The company was formed in 1984.
2.	Who will be the community manager assigned to handle this association?
	To be determined after meeting with the Board and based on other communities managed in the area.
3.	How much experience do your managers have?
	We have four (4) managers with a combined fifty-one (51) years of experience in this industry.
4.	Which licenses or certifications do your managers have?
	CMCA, AMS, PCAM and ongoing training.
5.	Is your management company a member of Community Associations Institute (CAI) and if so, what does CAI do for you?
	Yes. CAI provides extensive training, educational support for our staff. Additionally, it has a legislative action group and keeps our company advised of new laws, regulations or trends affecting community Association’s. This organization also allows us to share information among professional’s nationwide.
6.	What are your company’s office hours?
	8:00 a.m. to 4:00 p.m., Monday through Friday.
7.	What form of after-hours service does your company provide?
	Voice mail forwarded emergency calls to a manager’s cell phone, after office hours, seven (7) days a week. If the first manager is unable to respond, two back up managers will receive the call.

Part 2 – Administrative

Meetings:

1.	Will the assigned manager attend monthly/every other month/quarterly Board meetings?
	This varies with Association needs and the management agreement.
2.	How many hours do you allow for meetings before extra charges are incurred?
	One and one half (1-1½) hours.
3.	How much do you charge per hour after the limit?
	$95 or $125 per hour based upon the experience of the manager.
4.	Do you attend annual meetings?
	Yes. As agents for the Association, our job is to provide service and support to the Board of Directors to make their job as trouble free as possible.
5.	Will you prepare ballots and annual meeting notices?
	Yes, it is a part of the management agreement.
6.	Will you prepare and post agendas for all meetings?
	Yes, it is a part of the management agreement.
7.	Will you record, prepare and distribute the minutes of all meetings?
	No. This is best done by a recording secretary to allow all Board members and management staff to fully participate in the meeting.
8.	Are your company’s manager reports oral or written?
	Both written reports, with oral presentation, at Board of Directors meetings.
9.	Does your company provide Board meeting packages prior to the meeting?
	Yes, board packets are mailed six (6) days prior to the meeting.
10.	If yes, do the meeting packages include the following:
	Agenda – Yes. Previous meeting minutes – Yes, if supplied by the recording secretary. Work orders, service requests and CC & R’s, pending and completed – Yes. Financial statements – Yes. Delinquency Report – Yes. Specifications and bids – Yes. Items requiring board decisions or votes – Yes.

Record Keeping:

11.	Does your company maintain an owner roster?
	Yes.
12.	How about a tenant roster?
	Yes, if requested by the Board of Directors. The roster would be updated monthly.
13.	Do you use files for each unit?
	Yes.
14.	Do you have general files where you store the Association’s records?
	Yes, a complete file system is kept both computerized and hard copy.
15.	Do you charge a storage fee for maintaining old files and records?
	We store five (5) years plus current year records at no charge.
16.	If your answer was yes, how much do you charge?
	Records older than current plus five (5) years may be stored for the Association at a rate of $1.25 per banker’s box, per month.

Correspondence and Mailings:

17.	Does your company charge for any of the following? If yes, how much?
	General letters – postage and copy charges Notices – postage and copy charges Newsletters – postage and copy charges

Resale Coordination:

18.

Are your costs billed to the Association or to the owner?

To the Association, then rebilled to the owner.

19.

How much do you charge for a resale packet?

a. Resale Packet - $150

Includes the 17 certificates required by PA Statute such as By-Laws, prior month’s financial statement and current year’s budget.

b. Rush Fee – Additional $25

20.

How much do you charge for a refinance fee?

a. Refinance Fee – None, copy cost and postage only.

21.

If your company charges for any of the following documents, how much?

Articles of Incorporation, CC & R’s, ByLaws, Rules & Regulations
Minutes – 12 months
Financial Statement – Audit/Review
Statement/Demand of owner’s account
Statement of approved assessment increase
Statement of restriction in governing documents limiting the occupancy, residency or use of a separate interest (not all Associations have such limitations).
– Dependent on governing documents of the Association.

All of these documents are provided through an outside service whose prices vary. See website for current pricing.

Enforcement of Rules and Regulations:

22.	Does your company send out violation notification letters?
	Yes,it is part of the management agreement.
23.	Do you charge a fee for sending them out? If so, how much?
	No, except postage and copy costs.
24.	Do you help the Board establish a hearing procedure?
	Yes.
25.	Does your procedure include the right to appeal?
	At the Board’s discretion, but recommended by Community Management Solutions, Inc.

Part III – Financial

Bank Accounts:

1.	Will you keep all of the Association’s bank accounts in the Association’s name?
	Yes. It is a legal requirement.
2.	Does your company use trust accounts?
	No.
3.	Who gets the interest?
	The Association.
4.	Will all of the Association’s accounts be interest bearing?
	Yes.

Bookkeeping:

5.	Do you do bookkeeping in-house, or is it done by an outside company?
	In-house.
6.	Are the cash receipts and disbursement statements submitted to the Board on a monthly or quarterly basis?
	Monthly.
7.	Does your financial statement show an actual-to budget comparison?
	Yes.
8.	Does your financial statement show a reserve account reconciliation?
	Yes.
9.	Does your financial statement show how much is in each of the Association’s accounts?
	Yes.
10.	How often are the bank statements reconciled?
	Monthly. Bank statements are reconciled by the accounting supervisor, not the accounts payable clerk that processes the checks.
11.	Is a copy of the reconciliation submitted to each Board member?
	If requested, otherwise it goes to the Board Treasurer only, with copies of the Bank Statements.

Homeowner Assessment:

12.

How do you handle billing of members for their monthly assessments? Statements? Coupons?

We arrange for financial institutions to receive owner assessment with four options of payment methods to suit each owners preference. The payment options are listed below:

a. Direct Debit of the authorized bank account on the 6th day of each month, is free to both the Association and each Homeowner.

b. Payment Coupons is at a cost to the Association of approximately $15 for each owner using this method. The cost of this method is passed on to each owner who chooses the coupon system.

c. Electronic Payment is at no cost to unit owners.

d. Credit Card at a fee of $9.95 which is charged by the financial institution.

13.

Do you use “Direct Deposit” to the bank?

Yes, to a lock box system.

14.

If the occasional funds are received at your office, how often are deposits sent to the bank?

Daily.

Accounts Payable:

15.	Who approves payment of the service/product invoices made out to the Association?
	The Manager can authorize payments in line with a written Board policy.
16.	Who prepares the checks?
	The accounts payable clerk.
17.	Who signs the checks? How many signatures do you recommend?
	The accounting supervisor as per a written policy of the Board of Directors.
18.	After the disbursements have been made, how do you file the paid invoices? By month? By account?
	Invoices are filed by vendor and tracked by date and account.

Delinquency Collection:

19.	Do you send out a statement describing the Association’s delinquency collection policy?
	Yes, upon purchase of the home or upon revision.
20.	Is the delinquency collection process handled in-house or by an outside company?
	The first ninety (90) days are processed in house. If the delinquency progresses beyond ninety (90 days), a District Justice hearing is requested. After receiving a judgment at the hearing, it is then turned over to the Association’s Attorney for collection.
21.	Are there any additional costs for the delinquency collection? If yes, how much are they?
	Yes, $15 for a late notice, $45 for a thirty (30) day letter, $95 to file a magistrates action, and $45 if constable service must be secured are billed to the Association then rebilled to the owner as per State Statute.
22.	Do you provide a delinquency report on a monthly or quarterly basis?
	Monthly.
23.	Is the report written or oral?
	Written and may also be reviewed orally at the Board meeting.

Budget:

24.	Will your company prepare a pro forma budget?
	Yes.
25.	Does your company bill an individual homeowner for a copy of the budget?
	Every Association member receives a copy of the budget. Additional copies may be charged to the homeowner at a reasonable rate.
26.	Do you coordinate the budget preparation with a committee:
	The Board of Directors
27.	Does your company do the entire reserve study?
	No. An independent reserve study is recommended at least every three (3) to five (5) years. Those numbers are incorporated into the Association’s budget. Our company will update the budget information with current year-to-date numbers.
28.	Do you oversee the preparation of the reserve study by an outside party?
	Yes.
29.	How often is the reserve study conducted?
	very three (3) to five (5) years.

Audit/Review and Taxes:

30.	Do you coordinate the activities involved in audit/review preparation?
	Yes, and actively assist whenever questions arise.
31.	When do you send out the review/audit?
	Within thirty (30) days of completion or it is placed on the Association’s website.
32.	Do you charge an individual homeowner for a copy of the review/audit?
	No.
33.	Do you make sure that an Association’s taxes are paid on a timely basis?
	Yes, it is part of the management agreement.

Vendor 1099’s:

34.	Does your company prepare 1099’s for all of the Association’s unincorporated vendors?
	Yes, it is part of the management agreement.

Part IV – Maintenance

1.	What information does your company request from a contractor before awarding a contract for major work?
	Contractor’s license – Yes. Certificate of Insurance – Yes. Eligibility for bonding – If requested by the Board. List of references – Yes. Professional certificates – Yes.
2.	Do you file and retain the information requested above?
	Yes.
3.	How many bids do you obtain for major jobs like roofing or painting?
	A minimum of three (3).
4.	At what monetary level do you consider a job to be major?
	$3000 plus. However, this amount may vary, it is really dependent upon what the specific job is and the Board’s discretion.
5.	How many site inspections does your bid include?
	A minimum of one (1) per month. Usually two (2) or more if a large project is ongoing.
6.	Do you handle service requests?
	Yes, it is part of the management agreement.
7.	Will the Association’s vendors be supervised by your company?
	Our company will assist in the supervision of contracts as approved by the Board of Directors, and will monitor the Association’s regular vendors.
8.	Do you provide a list of the Association’s vendors to the Board members on a regular basis?
	Yes, with phone numbers and contact names.
9.	Does your company provide any in-house maintenance services for the Association’s you manage? If yes, what kind and what are the rates?
	No, we believe this is a conflict of interest in securing the best prices for the Association.

Part V – Extra Services

1.	Are any of the following provided to the Association at an extra cost? If yes, what is the cost?
	Participation in legal matters/lawsuits - $125 per hour Insurance claims facilitation – Ten percent (10%) of any claim over $5000. Participation in revision of legal documents – Hourly or agreed upon rate. Negotiating contracts greater than $5000 – No extra cost. All charges are identified on Addendums A & B to our management contract.

Part VI – Expenses

How much does your company charge for the following management expenses?

Copies – 10 cents per copy for items needed to maintain permanent records for the Association or mailings to owners, no charge for Board copies.
Printing – 10 cents per copy for newsletter, audits, budgets, annual meeting information, special mailings as directed by the Board of Directors.
Coupons/Statements - $9.00 per year per coupon book.
Stationary/Envelopes/Check Stock/Faxes/Office Supplies – All charges identified and included in the year end stationary charges on Addendums A & B to the management contract.
Mileage – Company absorbs.
Postage – Actual cost.
Direct depositing of homeowner assessments – No extra cost.

Part VII – Management Fees

1.	Will there be a start up or close out fee?
	Start up fee to establish your records in our office to be negotiated. There is no close out fee.
2.	What will be your monthly fee?
	Fee to be specified in the management agreement.
3.	What hourly rates do you charge for the following staff members?
	Principals - $125 per hour Managers - $95 or $125 per hour Assistant Managers - $45 per hour Accounting Personnel/Bookkeepers - $95 or $45 per hour Delinquency Collection Personnel – per action stated previously and then rebilled to the owner. The above staff rate is included in the management fee for all contracted services. These rates are for outside management agreement services.