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is it normal for a manager to hire their own company for services?


This question is submitted by R. Hayes out of Salem, MA. 

I was recently elected to our board and was astounded to learn that the property manager is writing checks from our HOA account to a service company he owns -- without the board ever reviewing his company's invoices.

Other board members claim this is a common setup for a large complex and they believe we are receiving work at a discount. Shouldn't this kind of work go out for bids?

I guess the question here is, Is it a common arrangement for a property manager to hire his own company to perform work at a complex, such as landscaping, cleaning, etc.?


Answers (8)

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