What happens to our on-site staff if we change management companies?

It depends entirely on who employs them, and a surprising number of Boards do not know the answer for their own community.

Two models. The association employs the staff directly, with the Management Company administering payroll — in that case the people stay and the payroll administration moves. Or the Management Company employs them and bills the association — in which case they are that company's employees, and whether they remain depends on the outgoing firm, the incoming firm, and any non-solicitation clause in your agreement.

That non-solicitation clause is the one to look for early. Some agreements prohibit the association from hiring the company's on-site personnel for a period after termination, which can mean losing a maintenance supervisor who has been on the property for a decade and knows where every shutoff is.

Ask every bidder how they would handle existing staff, whether they would retain them, on what terms, and who would employ them. Then ask what payroll, workers compensation, HR support and unemployment exposure the association carries under their model. That last one has real cost implications Boards rarely price.