Have You Reviewed Your Management Agreement Recently?

By: Aaron Goodman, PCAM
Goodman Management Group

Have you taken the time to review your management agreements recently? If you are a portfolio manager, you may have several agreements to read. Are they all the same? For on-site managers, these agreements are often tailored to the unique characteristics of each community. It is likely that this contract gets overlooked during annual planning more often than you realize.

If you are a Board Member, when was the last time you sat down and reviewed what your manager is expected to do for your community?

As a Board Member, having the right expectations is essential to maintaining a productive relationship with both your management company and your community manager. You may have assumptions about what the company should be doing for you, but when a report is missed, an insurance policy is not renewed, or a draft budget does not arrive on schedule, you should already understand what your agreement requires.

Just as community managers should review their agreements, Boards should take the time to review the management agreement annually with the entire Board of Directors. You may discover that a special project is approaching and that additional services from your management company will be needed—services that are not currently outlined in the agreement. Addressing those expectations in advance ensures everyone remains aligned.

More often than not, Boards assume the manager will simply take care of additional tasks. However, that may not be the case if the management agreement has been structured to maximize efficiency and manage the manager’s workload appropriately.

Community managers oversee numerous contracts and agreements for their communities, many of which require significant time and attention. However, it is equally important for managers to understand exactly what they have been hired to do. The small nuances that distinguish good service from exceptional service can easily be missed if managers are not familiar with the specific services their company has agreed to provide. Both the company and the client depend on the manager to execute those responsibilities, so take the time to understand not only what you are doing, but also why you are doing it.

While a management company may provide a general overview of its client management approach, the assigned manager was often not present during the interview and negotiation process. As a result, the manager may not have a detailed understanding of the commitments that were made. Do not assume that one contract is transferable to another client.

Whenever your company signs a new community and you are assigned as the manager, connect with the business developer or executive who worked with the client during the sales process. These conversations can help ensure that you understand the client's priorities, expectations, and any unique commitments that were discussed. These internal discussions can set you up for success from the very beginning, and we all want to excel at onboarding a new community. Remember, first impressions should be planned—not assumed.

I have seen management companies move away from sending only business developers to client interviews. Increasingly, they are including community managers, administrative staff, technology managers, and experienced leadership team members in the process. This approach helps ensure that important details from those conversations reach every level of the organization. When teams work together from the start, onboarding becomes smoother, follow-up is more effective, and the first 90 days of a new management contract are far more successful.

At the end of the day, a management agreement is more than just a contract—it is the roadmap that defines expectations, responsibilities, and accountability for everyone involved. Whether you are a Board Member or a Community Manager, taking the time to review and understand this document can prevent misunderstandings, improve communication, and strengthen the partnership between the community and its management company. Success rarely happens by accident; it comes from clear expectations, thoughtful planning, and a shared commitment to delivering on what has been promised. By making your management agreement a regular part of your annual review process, you position your community for greater efficiency, stronger relationships, and long-term success.