What to Expect During the Management Transition
A practical timeline and guide for transitioning from self-management or another company to professional management, including what happens in each phase.
You've signed the contract with your new management company. Now what? The transition period between signing and full operations can feel uncertain, but it follows a predictable path.
A typical transition takes 30-60 days, depending on complexity and cooperation from any outgoing manager. During this time, your new management company is working behind the scenes to set up systems, gather documents, and prepare for a smooth handoff.
This guide walks through what happens at each stage so you know what to expect.
Transition Timeline Overview
Here's a typical timeline from contract signing to full operations:
Week 1: Kickoff and document collection
- Kickoff meeting with board to confirm priorities
- Document request sent to outgoing manager or board
- Banking information gathered for account setup
- Initial system configuration begun
Weeks 2-3: Setup and transfer
- Governing documents reviewed
- Homeowner database built or imported
- Financial records transferred and reviewed
- Vendor contacts established
- Bank accounts transitioned or established
Week 4: Communication and go-live preparation
- Welcome communication drafted and sent to homeowners
- Online portal access set up
- Payment instructions distributed
- Emergency contacts confirmed
Day 1 of management: Operational handoff
- Full responsibility transfers to new management
- Homeowner inquiries now go to new company
- Vendor relationships formally transitioned
This timeline assumes reasonable cooperation from the outgoing manager. Delays in receiving documents can extend the process.
Document Transfer: What You Need to Gather
Complete documentation is essential for a smooth transition. Your new manager will request a comprehensive set of records.
Governing documents:
- Declaration (CC&Rs) and all amendments
- Bylaws and amendments
- Articles of Incorporation
- Rules and Regulations
- Architectural guidelines
Financial records:
- Current year and prior year financial statements
- Current budget and prior year actuals
- Reserve study and funding schedule
- Bank statements and reconciliations
- Accounts receivable aging report
- Tax returns (last 3 years)
Operational records:
- Vendor contracts with contact information
- Insurance policies and certificates
- Pending violation matters
- Architectural applications in process
- Board and membership meeting minutes
- Owner database with contact information
If transitioning from self-management, gather what you have. Your new manager can help identify gaps and work around missing documents.
Communicating with Homeowners
Homeowners need to know about the change and what it means for them. Clear communication prevents confusion and builds confidence.
What homeowners need to know:
- Effective date of new management
- New company name and contact information
- How to access the online portal
- Where to send assessment payments
- How to reach someone for emergencies
- Any changes to payment methods or due dates
Communication methods:
- Mailed letter to all owners of record
- Email blast to owners with email addresses
- Posting on community website or portal
- Signage at community entrances (if applicable)
Timing:
- Initial announcement: 2-3 weeks before effective date
- Detailed instructions: 1 week before
- Reminder: Week of transition
- Follow-up for any payment processing changes
Your new management company should draft these communications for board approval. This is part of the transition service.
Banking and Payment Transition
Financial transitions require careful handling to ensure no payments are lost and funds are properly secured.
Options for bank accounts:
- New accounts with new manager: Cleanest approach, ensures proper controls, may require signature changes
- Keep existing accounts, change signers: Less disruption but requires coordination with outgoing manager
- Keep existing accounts, add new manager as signer: Temporary approach during transition
Payment transition considerations:
- Homeowners with automatic payments need time to update payment destinations
- Consider allowing both old and new payment methods for 30-60 days
- Lockbox or payment processing may need reconfiguration
- Outstanding checks to vendors need to clear old accounts
Reserve account handling:
- Reserve funds should be in separate accounts from operations
- Verify reserve balance matches financial records
- Investment positions may need to be transferred or liquidated
Vendor Relationships
Existing vendor contracts need to be transitioned or reviewed.
For each vendor:
- Review current contract terms and expiration
- Notify vendor of management change and new contact
- Update billing and payment instructions
- Verify insurance and licensing is current
Common transition issues:
- Contracts with automatic renewal may need notice to change
- Some vendors may have loyalties to outgoing manager
- Payment terms may need renegotiation
- Service quality should be evaluated, not just assumed to continue
New manager's role:
- Review all vendor relationships for value and performance
- Recommend changes where appropriate
- Introduce their vendor network as alternatives
- Negotiate better terms where possible
Don't feel obligated to keep every existing vendor. Transition is an opportunity to evaluate and improve.
The First 90 Days of Management
The first 90 days set the foundation for the ongoing relationship. Here's what good management looks like during this period.
Month 1:
- All systems operational and processing payments
- Homeowner portal accessible
- First month's financial reports generated
- Initial property inspection completed
- Urgent issues identified and addressed
Month 2:
- Regular board reporting established
- Delinquent accounts identified and collection process begun
- Violation backlog assessed
- Vendor performance evaluated
- Recommendations for improvements presented
Month 3:
- Full operational rhythm established
- Next year's budget preparation may begin
- Long-term issues identified and prioritized
- Board relationships comfortable and productive
- Homeowner inquiries handled smoothly
Expect some bumps early on. Questions about past decisions, learning the community's quirks, and establishing relationships all take time. By 90 days, things should feel settled.
Key Takeaways
- 1Typical transition takes 30-60 days from contract to full operations
- 2Complete document transfer is critical for smooth handoff
- 3Communicate clearly with homeowners about changes and new contact information
- 4Banking transitions need careful coordination to avoid payment issues
- 5Evaluate existing vendors during transition, not just transfer them
- 6Full operational rhythm should be established within 90 days
Frequently Asked Questions
- How long does it take to transition to new HOA management?
- Typical transitions take 30-60 days from contract signing to full operations. Complex transitions or delays in receiving documents from outgoing managers can take longer. Rush transitions are possible but not recommended.
- What happens to our current management contract?
- Review your current contract's termination clause. Most require 30-90 days written notice. Provide proper notice as soon as you've signed with the new company. Your new manager can help coordinate the timing.
- Will homeowners notice a disruption during transition?
- With proper planning, disruption is minimal. There may be a brief period where payment processing takes longer than usual. Good communication prevents confusion. Most homeowners experience improved service after transition.
- What if our previous manager won't return records?
- Association records belong to the association. If an outgoing manager refuses to return them, you may need legal assistance. Most managers cooperate, especially when final payment is conditioned on complete record transfer.
- Should we pay off outstanding vendor invoices before transition?
- Generally yes. Having the outgoing manager clear all payables simplifies the financial transfer. Your new manager can take over paying ongoing invoices after a clean cutoff date.
- How involved does the board need to be during transition?
- The board should be available for questions and decisions but shouldn't have to manage the process. Good management companies handle the heavy lifting. Expect a few meetings and ongoing communication during the transition period.
Disclaimer
This content is provided for general informational purposes only. Transition timelines and processes may vary based on your specific situation and existing contracts. Review your current management agreement carefully before giving notice.