HOA Transitions: What to Expect
Making the decision to change HOA management companies isn’t always easy, but it can be one of the most important choices your board makes. Whether it’s due to poor service, communication breakdowns, or just a need for fresh perspective, knowing what to expect during when a HOA transitions to a new firm can help ensure everything goes smoothly. For board members, it’s also a chance to take a fresh look at your community’s needs and align with a partner who truly understands your goals.
Here’s what you can expect when your HOA transitions to a new management company and why choosing a local management company can make all the difference.
Step 1: Reviewing the Current Contract
Before making any changes, the board should review the existing management contract. Look for termination clauses, notice periods, and any fees associated with early termination. Some contracts require 30 or even 60 days’ notice, so timing is key.
Work with your HOA attorney if needed to ensure the transition complies with the terms of your agreement. Clear communication with the outgoing management company also helps avoid unnecessary conflict or delays.
Step 2: Selecting the Right HOA Management Partner
If you haven’t already chosen a new company, this is your opportunity to interview potential partners. Don’t just focus on marketing material or pricing, ask questions that help you understand how each company will serve your community:
- How responsive is their team? Where is the team located?
- What experience do they have with communities like yours?
- How do they handle financial reporting and homeowner communication?
- Can they provide references from other local boards?
Local management companies often bring added value here. They know Arizona laws and have strong relationships with trusted vendors. They’re also more available for on-site visits and in-person meetings, which is especially helpful during the transition.
Step 3: Communication with Homeowners
One of the most important parts of a successful transition is clear communication with homeowners. Once the board finalizes the change, it’s essential to notify residents with a friendly and informative notifcation.
This communication should include clear action items for owners and other relevant info:
- The name of the new management company
- The effective date of the change
- Contact information for the new manager or support team
- Instructions for paying assessments
Being proactive with this communication helps minimize confusion and builds trust with homeowners.
Step 4: Transferring Records and Financials
A smooth transition depends on accurate and complete transfer of records. This includes:
- Financial statements and association funds
- Governing documents (CC&Rs, bylaws, rules and other policies)
- Vendor contracts
- Maintenance records
- Resident contact and account data, lot files, architectural records, etc.
The outgoing management company is usually responsible for handing over these materials, but the new company will coordinate the process. Your board should remain involved to confirm that all necessary information is received and nothing falls through the cracks.
Step 5: Onboarding with the New Company
Once the new management company takes over, expect a period of onboarding and orientation. This includes:
- Setting up bank accounts
- Working with the association vendors
- Introducing software or communication tools
- Meeting with the board to review community priorities
A strong management company will take time to understand your community’s specific challenges and goals. They should also establish a clear plan for service delivery, including timelines for inspections and financial reporting. Local firms often have a faster ramp-up time. Because they’re familiar with the region, vendors, and typical community structures, they can hit the ground running with fewer delays.
Step 6: Evaluating and Adjusting
The first few months of a new partnership are critical. During this time, the board should stay especially engaged with the new management team to establish a seamless working relationship. Hold regular check-ins to:
- Monitor service performance
- Review financial reports
- Discuss homeowner feedback
- Address any needed adjustments early
This is also the perfect time to establish shared expectations. A good company will welcome your feedback and adjust services to better fit your needs.
The Local Advantage
Choosing a management company that’s based right here in Arizona offers several distinct benefits:
- Knowledge of local laws – Arizona’s HOA regulations are unique. A local company may be more likely to stay on top of legal updates.
- Stronger vendor networks – Local companies have built trusted relationships with landscapers, maintenance providers, and other contractors.
- Personal relationships – It’s easier to build a working relationship when your manager is part of the community too.
When you work with a company that’s familiar with the neighborhoods you live in, it shows—in the service, in the attention to detail, and in the way they anticipate your needs.
Looking to Make A Change?
Switching HOA management companies can feel like a big step, but it doesn’t have to be overwhelming. With good planning, clear communication, and the right partner, the transition can be a fresh start that leads to better service and stronger community outcomes.
If your board is considering a change, Arizona Community First is here to help. As a local firm with deep roots in Arizona HOA management, we understand what it takes to support your board with clarity, responsiveness, and care. Let’s talk about what’s next for your community, contact us today.
