How to Write an HOA Management RFP

An HOA management RFP (request for proposal) is a written document that tells management companies exactly what your association needs and asks each of them to answer the same questions in the same format. Its job is simple: get bids you can compare line by line. Without one, every firm prices a different scope, and the board ends up comparing brochures instead of services.

Why an RFP gets you comparable bids

Management proposals differ in three ways that are hard to see at first glance: what is included in the base fee, what is billed as an extra, and who will actually do the work. One firm may include four board meetings a year and bill hourly after that. Another may include monthly meetings but charge for every violation letter. A written RFP forces every bidder to price the same scope and to list every extra charge in one place.

It also creates a record. When the board votes, the minutes can show that directors defined the need, asked several firms the same questions and scored the answers. That is the kind of informed process directors are expected to follow. If you are still deciding whether you need full management at all, start with our comparison of HOA management options before you write the RFP.

What to put in the RFP

• Community profile. Number of homes or units, type (condominium, planned development, townhomes), year built, amenities, annual budget, reserve balance, number of board meetings a year, current vendors and any open issues such as a construction project, litigation or a high delinquency rate.
• Scope of services. List the tasks you expect: property inspections and how often, violation letters and hearings, architectural applications, vendor bids and oversight, owner communications, records, annual disclosures and election support.
• Meeting expectations. How many board meetings, the annual meeting, evening or daytime, in person or virtual, who prepares the agenda and board packet, and who takes minutes.
• Financial services. Assessment billing and collection, accounts payable, bank reconciliations, monthly financial statements and when they arrive, budget preparation, reserve study coordination, tax return and audit or review coordination, and delinquency handling.
• Staffing. Who the assigned manager will be, how many other associations that person handles, who covers vacations, and what on-site staff (if any) are included.
• Technology. Owner portal, online payments, board access to bank statements and reports, work order tracking, and who owns the data and the website domain.
• Transition plan. How the firm takes over records, bank accounts and vendor contracts from the current manager or from a self-managed board, with dates.
• Insurance, licensing and credentials. Proof of general liability, professional liability (errors and omissions), workers’ compensation, and fidelity or crime coverage. Ask which licenses and professional credentials the firm and the assigned manager hold.
• Fee format. Require one fee sheet: the monthly base fee, exactly what it includes, a full schedule of additional charges (hourly rates, copies, postage, escrow and document fees paid by owners, project oversight fees), setup fees and how fees may increase.
• References. At least three current board clients of similar size and type, plus one association that left the firm in the last two years.

Fee structures vary widely by region and by scope, which is why the fee sheet matters more than any published average. Our article on how much HOA management costs explains the common pricing models and the extras to look for.

Share this infographic: Pinterest · Facebook · LinkedIn · Email · Download

A copy-ready RFP outline

Paste this outline into a document and fill in the details for your community. Keep it to a few pages so firms answer what you asked.

Prefer to fill in a form? Our free HOA Management RFP Builder walks you through each part of this outline, adds California’s required disclosures and a scoring sheet, and produces a Word document you can send to firms.

1. Introduction. Association name, location, a board contact for questions, the proposal due date and how to submit (one PDF by email).
2. About the community. Unit count, property type, age, amenities, annual budget, reserve funding level, staffing and current management arrangement.
3. Services requested. Administrative, financial, site and maintenance, meetings, communications. State frequencies (for example, “site inspection twice a month”).
4. Proposal contents. Company history and ownership, the assigned manager’s resume and portfolio size, the accounting team, sample financial report and sample management report, technology description, transition plan with timeline.
5. Insurance and credentials. Certificates of insurance, licenses and certifications held, any regulatory discipline or litigation with association clients in the last five years.
6. Fees. Completed fee sheet in the board’s format, a list of every charge billed to the association or to owners, and the proposed contract form.
7. Disclosures. Ownership interests in, or referral payments from, any vendor the firm may recommend, and any other potential conflict of interest.
8. References. Names and contact details for current and former board clients.
9. Selection process. How proposals will be scored, interview dates and the expected start date.

Score the proposals the same way

Agree on the scoring weights before the proposals arrive. The weights below are only an example. Adjust them to what your community cares about most, then have each director score independently and compare.

Criterion	Example weight	What to look for
Assigned manager and staffing	25%	Experience with similar communities, portfolio size, backup coverage
Financial services and controls	20%	Sample reports, separation of duties, board access to bank records
Scope match	20%	Every requested service addressed, with frequencies
Total cost	15%	Base fee plus a realistic estimate of extras for a full year
Technology and communication	10%	Portal, response time standards, reporting
References and reputation	10%	What current and former clients say

A realistic timeline

Most boards need about three months from first draft to signed contract. Check your current agreement first, because its notice period sets the earliest start date for a new firm.

1. Weeks 1 to 2. Board agrees on scope and weights, approves the RFP and picks three to five firms to invite.
2. Weeks 3 to 5. Firms tour the property, ask questions and submit proposals. Send every firm the same answers.
3. Weeks 6 to 7. Directors score proposals and shortlist two or three.
4. Weeks 8 to 9. Interviews and reference calls.
5. Weeks 10 to 12. Contract review (ideally by the association’s attorney), board vote, notice to the current manager and a transition plan.

For the handoff itself, see how to switch HOA management companies.

Interview questions that reveal the most

• Who will be our manager, and can we meet that person today? You are hiring the manager as much as the firm.
• How many associations and how many total doors does that manager handle now?
• Walk us through how an invoice gets paid. Listen for who approves, who signs and who reconciles the account.
• Where is our money held, and in whose name?
• What did your last three clients who left say was the reason?
• Which charges on your fee schedule surprise boards most often?
• Do you or your owners have any financial interest in vendors you recommend?
• What happens to our records and data if we end the contract?

In California: disclosures, fidelity coverage and manager certification

California law does several things that belong in your RFP. The items below are legal requirements. Building them into the RFP is good practice, because it gets the required disclosures in front of the board early.

• Written disclosure before the contract. Under Civil Code section 5375, a prospective managing agent must give the board a written statement as soon as practicable, and no more than 90 days before entering into a management agreement. It covers the names and business addresses of the owners or general partners, relevant licenses, relevant professional certifications or designations, any business in which the firm has an ownership interest, profit-sharing arrangement or other monetary incentive, and whether the firm receives a referral fee or other monetary benefit from a third-party document provider.
• Conflicts disclosed with the bid. Civil Code section 5375.5 requires a manager or management firm to disclose any potential conflict of interest in writing when presenting a bid for service to the board. That includes referral fees from businesses serving the association and ownership or profit-sharing arrangements with recommended service providers.
• How your funds are held. Civil Code section 5380 requires a managing agent to keep association funds in trust accounts, separate from its own money and from other clients’ money. It also requires prior written board approval for transfers out of reserve or operating accounts above dollar thresholds set in the statute.
• Fidelity coverage that includes the manager. Civil Code section 5806 requires the association to carry crime insurance, employee dishonesty coverage or a fidelity bond for its directors, officers and employees in an amount at least equal to reserves plus three months of assessments, including computer fraud and funds transfer fraud. If the association uses a managing agent or management company, the association’s coverage must also cover dishonest acts by that firm and its employees. Ask each bidder how its clients meet this, and have your insurance agent confirm the endorsement.
• Managers are not licensed, and certification is voluntary. California does not issue a license for HOA managers. Business and Professions Code section 11502 sets the education and examination requirements a person must meet to use the title “certified common interest development manager,” and section 11505 makes it an unfair business practice to use that title without meeting them. A manager can lawfully work without being certified, so ask.
• Annual manager disclosures. Business and Professions Code section 11504 requires a person providing or proposing to provide manager services to tell the board each year whether the manager is certified, the certifying organization, the location of the primary office and whether the manager holds an active real estate license. Before entering into or renewing a contract, the manager must also disclose whether fidelity insurance covers the association’s current year operating and reserve funds.

A practical way to handle all of this: add one line to the RFP asking each firm to include its section 5375 statement, its conflict disclosure and its section 11504 disclosures with the proposal.

Mistakes to avoid

• Choosing on base fee alone. The lowest monthly fee often carries the longest list of extras. Estimate a full year of total cost for each bidder.
• Sending the RFP to too many firms. Three to five well-chosen invitations get better responses than fifteen.
• Interviewing the sales team only. Insist that the proposed manager attend.
• Skipping the contract review. Term, termination notice, automatic renewal, indemnity and records ownership matter as much as price. See what to look for in HOA management contracts.
• Letting one director run the process alone. Use a small committee and bring the decision to the full board.
• Ignoring your current notice period. Give notice too late and you may pay two firms at once.

For more on working with a management company, visit the How2HOA HOA management hub.

The Law Behind This Article

Every legal point in this article comes from the official text. Each link below opens it in a new tab.

Civil Code sections: 5375 · 5375.5 · 5380 · 5806

Business and Professions Code sections: 11502 · 11504 · 11505

This article is general educational information, not legal or financial advice. Laws vary by state and your association’s governing documents control many of these questions, so check with your association’s attorney or another qualified professional about your situation.