Condo Association Management Blog

It may depend on what the management contract calls for. It doesn't sound like they are doing anything wrong, and certainly not illegal. 
 
 
 
Since the board knows the fixed amount due to the management company each month, it shouldn't be cause for dispute. Perhaps your management company may have assumed that the board is looking to see all "other" bills before paying.  
 
 
 
It sounds as if there are some communication issues with your management company. A simple "sit-down" might help. 
 
 
 

This depend on your agreement with the management company. One way to control it is to your management company that you want to approve every check they write. This is s a pretty standard procedure where every checks requires two signatures. One would be from your management company and another one from a board member.

The provisions in your bylaws and your state law should be reviewwed. But common sence dictates that two noard members must sign any checks. Any management company who operates as you describe should be replaced. Their ethics are not what they should be. A monthly detailed invoice should be presented to Board along with their payment request. Otherwise how does the noard know what thery did??

Your BOD needs to change their way of operating. They should be in control not the prop. mgr. That doesn't mean the prop. mgr. shouldn't have authority to do certain things w/o going through the board; however when it comes to paying the bills -- including the mgmt co fee, this should be reviewed by the board Treasurer b/4 the check is mailed. Also, the prop. mgr. should not be signing the checks. This should be done by the board treasurer or the Pres.

It is very common for management companies to prepay their fixed fees on the first of the month. Generally it is included in their contract. It would not be illegal for them to pay their fee unless they were not signers on the account and it does not sound like that is the case. 
 
 
 
You mentioned that there is a variable bill. This is most likely for postage\copies\etc that should also be outlined in your contract.  
 
 
 
My suggestion is that you approve your management company to pay their management fee on the 1st of the month however, reserve the right to approve the administration charges on a monthly basis. I have seen this work in many associations that I have managed. 
 
 
 
Please keep in mind that the management company has most likely fronted all the postage and copy expenses for the association so it is only fair to review their bill promptly so they may get payment for the services as outlined in contract. 
 
 
 
Tommy Whitehead, LCAM Florida 
 
tom@tlwmanagement.com 
 

I would like to know if there is a conflict of interest when the Board President is also the owner of the managment company. We have had several complaints about how the proprerty has been maintained. She is also the owner of both commercial units that have recently been built, not the association. She uses our maintainence man to maintain both of her commercial units as well as association employees to clean the units in the other commercial property. We pay $300 a month in assessments. We have a 50 unit condominium which is quite a bit of money. Not sure where all of this money is going since nothing is being maintained on association property. All she is conerned with is her commerical units. I would like to get together all owners but not sure how to approach them. Our Board consists only of her. A few of us would like to vote her out.

Sarah, 
 
 
 
Your board Pres certainly does have a conflict of interest. IMO, she needs to be removed and a 3-5 member board needs to be elected made up of people who have no conflict of interest. How did she get to be the only member of the board? 
 
You can approach your fellow owners with the same info you posted here. If the majority don't feel like there's a problem with just having one board member albeit one who has a definite conflict of interest then the members are getting exactly what they deserve. A recall is definitely in order; check your gov. docs and state law. 
 
Good luck!