HOA 101: A Complete Guide to RFPs
One of the hardest decisions a homeowners’ association (HOA) board of directors will have to make is who to hire for their management company. It can be daunting and take time and effort to find the management company that best suits your needs, but by first writing and distributing a request for proposal (RFP), you’re simplifying the process from the onset. Read on to learn about RFPs, why they’re important, how to draft one, and more.
What is a Request for Proposal?
Typically drafted by the board of directors or an appointed committee, an RFP is a formal document that requests a bid for management services. The document should include essential information about your community and its needs, expectations, and requirements. Taking the RFP details into consideration, management companies will then submit proposals explaining what they can offer your community and why you should hire them.
Why should your association use an RFP?
Creating a thorough, well-written RFP that clearly outlines your community’s desires streamlines the selection process. Vendors can craft personalized proposals addressing your community’s specific needs, minimizing back-and-forth and saving all parties time, resources, and energy. In most cases, the better the RFP, the better the proposal, and the easier it is to compare, evaluate, and select a management company.
Using an RFP also allows you to set expectations from the very beginning, ensuring a pleasant and productive partnership that will benefit your community for years to come.
How do you submit an RFP?
Often, a management company's website will include a link to request a proposal, and the process starts from there. Otherwise, it's best practice to send a professional email with your RFP attached and your direct contact information clearly listed.
How to Write a Request for Proposal
To get the most out of your RFP, be as detailed as possible and include:
- The basics. Association history, distinguishing features, number of homes and members, and type of community (townhome, condo, single-family)
- List of amenities. Pool, clubhouse, gates, deeded parking, etc.
- Board information. Number of board members, available internal resources, communication strategy and volume, and vendor and service provider management.
- Meeting information. Meeting frequency, types of business conducted, etc.
- Financial information. Current financial state, assessment frequency, and anticipated increases or special assessments.
- The board’s expectations. Management philosophy, recent challenges, and goals.
What happens after you submit an RFP?
After you’ve submitted an RFP, management companies will respond by sending their proposals, providing thorough information about their company and a pricing bid for their services. Once you’ve had a chance to carefully review, evaluate, and compare your list of proposals, you should be well informed and confident enough to move forward and conduct interviews with a select number of candidates and ultimately make your final decision.
Request for Proposal Template
Every request for proposal should include essential details about your community and its needs, expectations, and requirements. To help you find services for your association, we’ve drafted this sample RFP, which you can use in various scenarios. Enter the information specific to your association in the appropriate fields:
Introduction and Timeline
At [INSERT HOA NAME], we are soliciting bids from local management companies to provide their management services for our association. The request for proposal timeline, description of our community, services needed, and other pertinent information are included below. Your response will be held in the strictest of confidence.
Timeline Dates
We look forward to receiving your bid pursuant to this request for proposal
for services by [INSERT DATE AND TIME]. Please return your comprehensive
response to:
- [INSERT HOA CONTACT NAME]
- [INSERT HOA ADDRESS]
- [INSERT HOA CITY, STATE, ZIP CODE]
As with any request for proposal of this type, the association's board of directors is the decision-maker in contracting for services. Once all the proposals are received and reviewed, the board may request a limited number of management companies to interview directly with the board on [INSERT DATE]. The board will vote upon the final selection at its meeting on [INSERT DATE].
General Description of Your Association
• Name: [INSERT HOA NAME]
• Location: [INSERT HOA ADDRESS, CITY, STATE]
• Type of association: [INSERT MASTER PLAN, CONDOMINIUM,
TOWNHOMES, OR CO-OPERATIVE]
• Number of units: [INSERT #]
• Inception year: [INSERT YEAR]
Service Our Association Expects From a Management Company
[INSERT EXPLANATION OF NEEDS BASED ON RECENT CHALLENGES, CURRENT GOALS, AMENITIES, FINANCES, ETC.]
Key Contacts at Our Association
The following is a list of key community association contacts available for questions regarding this RFP. For consistency, all information and/or questions will be relayed to other bidders involved in this process:
- President [INSERT TITLE, NAME, AND CONTACT INFORMATION]
- Vice President [INSERT TITLE, NAME, AND CONTACT INFORMATION]
- Secretary [INSERT TITLE, NAME, AND CONTACT INFORMATION]
- Treasurer [INSERT TITLE, NAME, AND CONTACT INFORMATION]
- Other [INSERT TITLE, NAME, AND CONTACT INFORMATION]
Current Management Service Provider For Our Association
During the past [##] years, our association has used the services of [INSERT NAME
OF CURRENT MANAGEMENT COMPANY ]. However, we are seeking bid proposals currently because [INSERT REASONING FOR BID PROPOSAL]. Contact [CAN OR CANNOT] be made
with the prior provider.*
*If contact can be made with the current provider, list the contact’s name,
address, phone number, and email.
Information About Your Management Company: Background
Please tell us about your community management company and be as thorough as possible.
- Detail your experience with other community associations and any
communities of comparable size to [INSERT HOA NAME], including historical detail
on how long services have been provided. - List the names and contact information for other similarly sized communities we
may contact as a reference. - Include a description of relevant factors about your organization’s services
that support why selecting your company is the best decision for our community
(i.e., Years of service, designations, credentials).
How to Succeed with Your Community Management Company
At Associa, we know first-hand that hiring a professional management company has countless benefits, including reduced costs, increased efficiency, and stable and reliable operations. Over the past 41+ years, we’ve worked alongside thousands of communities and have learned that to reap these benefits, the board and management staff must build and maintain a good relationship.
With our experience, we created our ebook, “How to Succeed with Your Community Management Company,” to help your board navigate the ins and outs of working with a professional management company. In it, we share valuable tips for establishing a successful partnership that’ll prepare your community for a strong future.
Request for Proposal FAQs
What is the request for proposal?
In an HOA, the request for proposal is a formal document requesting a bid for management services. The document should include essential information about the community and its needs, expectations, and requirements.
When should a request for proposal be issued?
HOAs should issue their request for proposal once they know that they are ending their relationship with their current community management company. The RFP should kick off the process of selecting a new management company.
How to write a request for proposal?
To get the most out of an RFP in a homeowners' association, be as detailed as possible and include:
- The basics. Association history, distinguishing features etc.
- List of amenities. Pool, clubhouse, gates, deeded parking, etc.
- Board information. Number of board members, available internal resources, etc.
- Meeting information. Meeting frequency, types of business conducted, etc.
- Financial information. Current financial state, assessment frequency, etc.
- The board’s expectations. Management philosophy, recent challenges, and goals.
Who creates an RFP?
An RFP is typically drafted by the board of directors or an appointed committee in an HOA.