Case Study

II. History with Management Company

Very quickly it became apparent that the management company did not provide a fraction of what was contracted. Communication was almost nonexistent; violations were handled poorly or not at all; projects needing attention were ignored for years; and even the simplest, most routine tasks were not handled. The company “suggested” the subdivision’s money be placed in a bank far out of state. They took ownership of the subdivision’s official domain name, and redirected it to the problem-ridden website they provided. The company’s address was on every bill and every official piece of paperwork for the subdivision. In short, they essentially took over everything, which is typical. While the HOA boards technically had decision making power, they allowed the management company to insert themselves into every area of the HOA’s operations. With their complete ineptitude and failure to handle things properly, the results were disastrous. The subdivision suffered greatly, and wasted enormous amounts of money, for over a decade. The reasons why this happened here, and in countless other subdivisions, is described on our Why SHOAR? page.

As this situation continued, residents grew increasingly angry with the company and the boards who kept rehiring them every three years. Some pointed out how nearby subdivisions were thriving without a management company, but their voices were dismissed. A verified poll of residents was taken, asking simply whether to keep a management company or go to self-management. A staggering 98% were in favor of self-management, but the company remained.

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