After selecting a HOA management service type and candidate firm, carefully consider the proposed management contract. The base management fee is the beginning, not the end of a thorough review. One way companies can offset a lower base management fee is to have many extra charges. Fidelity insuranceThe association is required by Civil Code 5806 to carry fidelity (dishonesty) insurance and so should the management company. Make sure the association’s coverage includes the management, and meets or exceeds the minimum amount specified by Civil Code 5806.

Source: Forbes April 23, 2022 14:33 UTC