The process of selecting a new management company.

Selecting a new management company is a significant decision for any Owners’ Management Company (OMC) and should be done carefully and transparently. Here’s how the process typically works:

1. Identify the Need for Change
   The OMC board or residents may initiate the process due to poor service, lack of communication, high costs, or a desire for improved management. Feedback from residents is usually gathered first.
2. Review the Current Contract
   Check the terms of the existing management agreement, including notice periods and termination clauses. Legal advice may be needed to ensure proper and lawful termination.
3. Form a Selection Committee
   The OMC board or a dedicated group of owners may form a committee to oversee the process, define requirements, and ensure transparency.
4. Define Requirements
   Set clear expectations regarding services, costs, reporting, communication, and legal compliance. This forms the basis for evaluating potential companies.
5. Request Proposals (RFP)
   Invite multiple licensed property management companies to submit detailed proposals. These should include pricing, service offerings, references, and relevant experience.
6. Evaluate Candidates
   Assess proposals based on value for money, experience, reputation, and how well they understand the specific needs of the development. Interviews or presentations may be arranged.
7. Make a Recommendation
   The committee or board selects the preferred candidate and presents the recommendation to the members of the OMC.
8. Member Approval (if required)
   Depending on the OMC’s constitution or the level of change, a vote may be needed at an AGM or EGM. Proper notice must be given for any formal decision.
9. Appoint the New Company
   Once approved, a formal contract is signed, and a transition plan is agreed upon. The outgoing company is notified in accordance with the termination clause.
10. Manage the Handover
    Ensure a smooth transition by coordinating handover of documents, financial records, keys, and any ongoing maintenance issues between the old and new management companies.