HOA contracts with vendors aren’t just formalities. They’re legally binding agreements that determine the exact parameters of the service you can expect—when it will be provided and when it won’t. Thus, it’s imperative that your HOA management board learn how to navigate them.
While that sounds simple in print, the reality of the matter can be a bit more complicated. Since all contracts are, of course, different, there’s no systematic way your board can handle them. There are, however, a few rules of thumb that can make understanding what you’re getting into with a particular vendor a little bit easier.
Understand the Contract’s Basic Points
It’s unreasonable to require board members to memorize each contract word-for-word and term-for-term. That’s why you keep paperwork on file, after all! However, what is required is that your HOA management team familiarise themselves with a few key points, including
● What conditions are required to end the contract
● Applicable penalties to ending the contract
● Conflict resolution procedures
● What payments are due by the HOA and when
● What services the contractor agrees to provide
● Who is liable should the vendor behave carelessly
Sure, you’ll always be able to consult the contract for the nitty-gritty details, but being able to recite the overarching themes makes your job much easier. If needed, make a single sheet at the beginning of each contract with important points listed for quick reference.
Read Them (Yes, Actually Read Them)
HOA vendor contracts can be extensive, but it’s crucial that you read them word-for-word. Some may contain hidden fees or additional costs that aren’t listed in the basic points. Other nefarious ones might even try to put board members personally on the hook for missed payments!
If you’re struggling to wade through all the terms and conditions, consulting an attorney can help. Phoning the contractor with questions is also more than an acceptable course of action. After all, they’re competing for the privilege of serving your HOA.
For Property Management Services That Stand Out From the Rest, Contact Gassen Today
Having trouble in the constant HOA management board juggle? Vendors, community events, budgets… it all can get to be too much when you’ve also got a personal life to run!
Gassen, Eden Prairie providers of online property management, accounting property management, and more, is here to help. When you hand us the reins, we’ll set about untangling your board’s to-do list, giving you your life—and your community’s vitality—back. Give us a call now at 952-922-5575.