Clarifying Misconceptions About the Manager's Role

Community associations hire managers for two reasons: to carry out the policies of the board of directors and to manage the association's day-to-day business affairs. Frequently, however, residents and even some directors don't understand the manager's role. They see the manager as a referee and information source. They expect the manager to be on call 24 hours a day. They believe the manager works only for them.

That's not how it works. In most communities, the manager meets with the board of directors each month to report on association business. Often the manager gives advice, suggestions, and recommendations. A board typically directs the manager to perform 10 to 20 tasks before the next meeting. This may include writing letters, soliciting bids, preparing policy statements, and negotiating contracts. The manager also must deal with maintenance and rule enforcement problems. The limit on the manager's authority generally is spelled out in the management agreement.

What are the most common misconceptions? Consider the following:

1. The manager is a referee. Homeowners should not expect managers to arbitrate disputes with their neighbors. Unless the dispute involves a violation of association restrictions, the manager does not need to be involved.
2. The manager is the homeowners' advocate. Homeowners should have enough interest in their community to present their concerns to the board--forwarding those concerns is not the manager's job. The manager does not vote on any board issues. Venting frustrations at the manager may make a homeowner feel better, but it's unproductive for everyone involved. Homeowners should direct their attention to the board. Likewise, managers cannot update each owner on association activities. Residents should attend board meetings to learn what's happening in the association. Those who can't attend meetings should read the newsletter or contact board or committee members for updates.
3. The manager is available at all times. With the exception of on-site managers, most community managers have commitments to other associations. They are entitled to a courtesy call to arrange a meeting.
4. The manager is responsible for contractors. The board and the manager try to choose the best contractors for the association. But they do not have direct control over the contractors' actions and they are not responsible for poor performance. The contractors are responsible for supervising their personnel, not the manager. The manager is responsible for monitoring their performance and reporting problems to the board. Homeowners should report any problems with the contractor to the manager, who will forward them to the contractor. The board is responsible for any subsequent actions.
5. The manager anticipates every problem. Managers typically inspect the property on a monthly basis, but even an experienced manager can miss a problem--particularly if there's no evidence on the building's exterior. Owners should not rely solely on the manager to safeguard their investment--their participation is essential in identifying problems.
6. The manager takes orders from each owner. The manager is accountable to the board of directors, not individual owners. Homeowners who disagree with the board's polices--and, in turn, the manager who carries them out--should resolve the conflict with the board of directors.
7. The manager takes orders from individual directors. Managers act under the orders of the entire board of directors, not one individual director or committee member (unless the board grants a particular individual the authority to deal with a specific matter). The management agreement between an association and a management company usually stipulates that the board should identify one person to act as liaison to the manager. Too many bosses creates problems for everyone.
8. The manager is responsible for delinquent accounts. A manager or management company typically has three responsibilities regarding delinquencies:
   1. Send monthly notices to delinquent homeowners
   2. Give the board a monthly delinquency report
   3. Represent the association in small claims court

   The manager's collections efforts do not include phone calls or visits to delinquent owners. Beyond small claims courts, collection activities should be handled by the association attorney.

9. The manager should give advice on everything. Managers have a broad range of expertise, but they are not engineers, architects, attorneys, or accountants. Owners should not expect them to give advice if they are not qualified.
10. The manager responds to all emergency calls. The manager responds to all true emergency calls. Inconveniences, however, are not emergencies. Failing to plan a party around the association's lawn irrigation schedule or getting locked out of the house does not damage or threaten the community--which is how the association classifies an emergency. Understanding this--and understanding the manager's role--will reduce future conflicts.

THE CHAIN OF COMMAND

A community manager carries out association policies established by the board of directors. Each officer of the board has specific responsibilities, including:

• President. The president is the association's chief executive officer. Responsibilities include running board and general membership meetings and setting goals. Some documents give presidents the right to appoint committee members. The president may occasionally negotiate contracts, sign contracts and other documents, and oversee their fulfillment.
• Vice President. The vice president performs the president's duties in his or her absence and often handles special projects.
• Treasurer. The treasurer works with the manager and finance committee to develop the budget. Responsibilities also include monitoring association financial activities, overseeing insurance policies, investing assets, maintaining reserves, and coordinating a year-end audit.
• Secretary. The secretary is responsible for preparing and distributing meeting agendas and minutes. The secretary also maintains the association's official records (or supervises their maintenance).