How to File a Complaint Against an HOA Management Company

Many homeowners associations (HOAs) enlist the help of an HOA management company to keep the community running smoothly and assist with various functions ranging from rule enforcement and dues collections to vendor management and administrative support. The board and management team work together to preserve property values and foster an enjoyable living environment. But what happens when homeowners or the board are dissatisfied and want to file a complaint against the HOA management company or community manager?

There are several ways the association can handle concerns and work toward an agreeable resolution. In some cases, this may involve legal action or switching to a new property management company. As a leading HOA management company in Charlotte NC, Huntersville NC, Wilmington NC, Myrtle Beach SC, and Fort Mill SC, Kuester Management Group is happy to work with associations to resolve disputes and build a more effective partnership.

Handling HOA Complaints

Any complaint against the HOA should be taken seriously. While some may turn out to be baseless, others require prompt attention, and both should be properly addressed. The association may have a complaint form that members can fill out to formally express their concerns. Upon review, board members may find that the issue is with action (or inaction) from the management company. The board itself may also note problems involving its interactions with the company. These grievances may be due to issues such as:

• Violations of the management contract.
• Noncompliance with governing documents.
• Poor communication.
• Failure to maintain common areas or keep up with property maintenance.

Documenting Problems

One of the first things the HOA should do is document any homeowner complaints against the management company. Keep a detailed log of exactly what has occurred, when, why it is a problem or what terms it violates, and what steps have been taken to address the situation. If any written communication has been sent, whether via letter, email, or online submission, keep copies of these as well. The HOA board should have a paper trail to back up its claims.

It is a good idea to review the contract with the property management company to verify that a violation occurred or that the community manager is not meeting expectations. Check the HOA’s governing documents as well to confirm how things should be handled and where there are any discrepancies.

Reach Out to the HOA Management Company

Before the HOA considers any legal action, it should contact the property manager and schedule a meeting. Take the time to address any concerns and discuss what can be done to correct them and prevent future problems. The management team may not have even been aware that unit owners or the board were unhappy or anything was wrong. Give them a chance to make things right.

The HOA bylaws or covenants, conditions, and restrictions (CC&Rs) may dictate what steps should be taken as far as conflict resolution, mediation, or arbitration is concerned. Maintaining regular communication with the community manager can catch problems early on and prevent them from escalating. Coordinate periodic check-ins to make sure both the board and management company are upholding their end of the agreement and to see how they can work together more effectively. 

Consult with a Legal Professional

The HOA board may also want to seek legal advice from a licensed attorney about how to move forward. The attorney can review all documentation, determine if a breach of contract or other violation has occurred, and offer guidance on how to file a formal complaint with the appropriate agency or provide alternative dispute resolution strategies. This can enable the association to rectify the situation without filing a lawsuit or taking more drastic measures.

A legal professional can ensure that the association is following the proper protocol in documenting, submitting, and resolving complaints against the management company. If further action is needed, they can represent the HOA in legal proceedings.

File a Formal Complaint

This can be a bit trickier, as there are no federal laws that regulate HOA management companies, and local or state regulations can vary depending on where you live. It is a good idea to research any laws within your municipality to see what course of action is available. An HOA attorney can also provide some guidance in this regard.

For instance, HOAs in South Carolina may consider filing a complaint with the state’s Department of Consumer Affairs, and those in North Carolina can look toward the state’s Department of Justice for assistance. It depends on the agency as to whether they actually take action against complaints or simply keep a formal record of them. In some cases, the HOA may be able to take its case to small claims court and receive some compensation.

Results will vary on a case-by-case basis depending on which option the HOA pursues, how strong of a claim it has, and the municipality or state’s power in matters regarding HOA management companies. The association may want to consider switching management teams and starting fresh with a new organization that is able to better meet its needs and deliver quality service.

Managing Conflict in the HOA

Issues are bound to arise from time to time, but taking proper steps to manage conflict and resolve problems with the HOA management company can create a more effective and beneficial partnership. Choose the right management team to work with your association and maintain open lines of communication to address concerns before they become more serious.

Frequently Asked Questions