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We are having to change HOA Management company for the first time in 30 years. Is it proper for a company you are considering asking for your financials and 2024 fiscal year budget? I am wondering if they set their price on how much money you have. They also asked for our governing documents and I don't see a problem with providing them.
Aug 23, 2023
Litigation
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Bill HenryFounding Partner | 18 years of experience
Profile Picture of Attorney Bill Henry
Profile Picture of Attorney Bill Henry
Bill HenryFounding Partner 18 years of experience

I would not be concerned with disclosing the communities financial documents to the management company. The financial and governing documents are public documents available to the whole community, and any management company considering taking on the responsibilities of managing the HOA would likely need this information to understand the community's needs and obligations fully.

The price the management company sets is typically based on a multitude of factors, such as number of units, age of the community, common areas, community amenities, and other factors that could influence their management approach. The financial health and stability of the HOA may also play a role in determining the price as well. However, this doesn't necessarily mean they set their price solely on how much money the HOA has.

I would start by asking the company about their pricing structure and how they use the information to determine their fees. Transparency and open communication are key to a successful partnership with a management company.

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