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Myths and Misconceptions
  1. The Manager or Management company works for the developer or builder.

 This is only the case where and when a developer or builder has set up and established a property management office as part of their company or it serves as an affiliate of their construction business.


Most Managers and or Management companies are selected by the developer or builders due to the fact they have no affiliation. The manager and or management company is working on behalf of the entire association. The developer or builder board has a responsibility as the first board to make decisions on hiring a manager or management company. Most wish to select a company “outside” as a means of eliminating any appearance of conflict of interest.


  1. The developer or builders pay the manager or Management Company for services.

 The association pays the Manager or the Management company, just as it does with all its vendors or contractors on behalf of the association. The management contract is written between the Management company and the association and the contract pricing for services and fees is agreed upon with the signed management agreement.


  1. The Management company determines the assessment fee.

 The Manager or Management Company does not determine the assessment fee. They may aid the developer/builder in creation of a projected budget for the association however; the developer or builder board sets and determines the assessment fees and any other fees to be collected.


  1. The developer or builder does not pay assessments.

 In some cases the governing documents are drafted in such a manner that states the developer/builder is exempt from paying assessments. In other governing documents, they may well be required to pay assessments.


The developer/builder has a responsibility to cover any shortfalls of the association and ensure that it can meet its payment responsibilities on bills, contracts, and insurance. The developer or builder may establish a legal “NOTE” for repayment in coverage of any association shortfalls. Some developer/builders do expect repayment while others waive any shortfalls they have paid on behalf of the association. This represents an out-of- pocket expense for the developer/builder and directly impacts their bottom line. When waived, most communities have realized and understood the extra dollar value this has represented to the community.


  1. The Manager works for the developer/builder. 

The Manager serves as the association and homeowner advocate in all association business. The Manager’s absolute objective and goal is to look out for the association and work for the board. The first board is the developer or builder board and again in that role they are the decision makers communicating the decisions to the manager. The Manager does not run the association. The Manager serves at the pleasure of the board. 


  1. The Manager or Management Company chooses or selects the contractors or vendors. 

The Manager or Management Company may make recommendations on vendors or contractors; however the developer or builder selects the contractors through either an already established relationship or through a defined bid review process. The Manager supervises the contractor or vendor as a third party – however it must be understood that the Manager or the Management company has no direct control over the contractor. The Manager reports any concerns or issues related to the performance to the board and the board subsequently makes follow-up or final decisions based on performance or non-performance issues.


  1. The Manager or Management company won’t fix my gutter and I just moved in.  

Most new homes have a set warranty in place through the first year. The developer or homebuilder is responsible for any remedy, repair or replacement that may be constituted subject to and while under warranty on the interior and exterior of the home. This includes the reporting of any noticeable defect in construction of the home, Lot drainage, grading, as well as others that may or may not be the cause. Be sure to check your move in date and if under warranty – contact the builder's warranty department.


If out of warranty and subject to association maintenance responsibility, contact the manager or management company for a work order and/or maintenance service.


Copyright Innovative Property Management, LLC 2007

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Innovative Property Management, LLC,
PO Box 1757
Washington MO 63090
Phone: 314-922-8968

This web site is a service of Innovative Property Management, LLC