Factors to Consider When Hiring a Management Company

Let me offer several reasons why you may want to think twice before hiring a management co. that also provides services that compete with other vendors that you may need to properly operate your property. Many management companies have divisions that may provide some or all of these types of services: in-ground sprinkler system maintenance, pool maintenance services, snow removal, roof repairs, painting, carpentry services etc.

Consider this example, if your management company is collecting three bids to repaint your clubhouse, and it provides bids from company A, company B and submits its own bid, which bid do you think might be the lowest bid? Because the management company is collecting the bids, how can it be objective when preparing its own bid? How can it avoid a conflict of interest, or the appearance of a conflict of interest? It has the unfair advantage of seeing the prices of the competition, which its competitors cannot see, before submitting the bids for your review.

If your management company is selected to paint the clubhouse in the scenario described above, and the paint job is poor, who does the management company complain to? Who does it withhold payment from until the problems are corrected? It would be very hard for this company to be fair and objective with its for-profit painting department. How can it provide the same arms-length objectivity that it would with an independent third party who may need to cure similar problems.

The only way that you can avoid this conflict of interest is to hire a company that does not also have for-profit departments. Meridian Management has no for-profit departments. Its goal is to make sure that your property gets the best possible service from the vendors serving your property, at the best possible value. If something does go wrong, we are here to work on your behalf to get the issues cured and to make sure that you receive the top quality service you expected to receive.

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