Navigating Property Management Change
Lessons from Habitat Magazine’s Problem Solved! Podcast
Making a change in property management is one of the most significant decisions a co-op or condo board can face. In a recent episode of Habitat Magazine’s Problem Solved! podcast, Tina Larsson, co-founder and CEO of The Folson Group, shared a success story about a Westchester co-op board that found itself in a difficult situation and needed help with a property management search.
This particular board, overseeing a 150-unit co-op, had recently been elected and was eager to improve building operations. However, they quickly encountered serious challenges: financial records were inaccessible, a critical boiler replacement project was stalled, and communication with their management company had broken down. Realizing they needed new leadership, they reached out to The Folson Group to guide them through a property management search and transition process.
Determining the Need for a Property Management Change
The first step in any property management transition is assessing whether a change is truly necessary. In this case, the board had lost confidence in their existing property manager and recognized the urgent need for a better fit. The Folson Group worked closely with them to evaluate their situation, clarify priorities, and determine exactly what they required from a new management firm.
The board’s must-haves included:
A property manager on-site two days per week instead of the inconsistent, infrequent visits they had before.
A dedicated assistant to ensure better responsiveness and communication.
A more proactive, hands-on approach to move stalled projects forward.
Conducting a Strategic Property Management Search
With a clear set of priorities, The Folson Group led the board through a property management search designed to find a firm that met their specific needs and budget. This involved:
Crafting a tailored request for proposals (RFP).
Pre-screening firms and checking references.
Narrowing the search to three top candidates.
Organizing structured, back-to-back interviews to help the board make an informed decision efficiently.
When the board found itself torn between two strong finalists, The Folson Group provided expert guidance to help them weigh the pros and cons of each option.
Negotiating the Contract & Managing the Transition
Once the board selected a new firm, The Folson Group helped negotiate the management contract to ensure their key priorities—such as increased on-site presence and improved communication—were explicitly outlined.
The property management transition started within 60 days, a critical period that can often be turbulent for buildings. The Folson Group remained involved throughout, ensuring a seamless handover of financial records, maintenance responsibilities, and ongoing projects. Within weeks, the board experienced significant improvements:
Monthly financial statements were being delivered on time.
The stalled boiler project was restarted and scheduled for completion before winter.
The new property manager provided the hands-on support the board had been missing.
Key Takeaways for Boards Considering a Property Management Change
From this experience, Tina Larsson shared valuable insights for any co-op or condo board embarking on a property management search or transition:
Evaluate the situation first – Determine whether the problems can be fixed internally or require a management change.
Define key priorities – Identifying must-have services helps ensure the new firm is a better fit.
Seek expert guidance – Since existing management cannot assist in the transition, working with an independent expert streamlines the process.
Use a structured search process – A well-organized interview and selection approach makes decision-making easier.
Negotiate contract terms upfront – Boards should ensure their needs are clearly outlined in the management agreement before signing.
For any board struggling with management challenges, The Folson Group provides the expertise and support to simplify the property management search and transition to ensure long-term success.