Someone talk me off the ledge

[Jasmine B.]

What reservations, if any, would you have if a property management company is the service provider for an HOA & in the HOA CC&R's the same prop mgmt company has exclusive rights to leasing a community of Multifamily properties?

Meaning if I owned a $1M 6-plex, I have NO flexibility to manage it myself or hire another company if they drop the ball one too many times. The HOA Declaration says that I must use the assigned property mgmt company exlcusively.

To paint the picture more clearly, the Prop Mgmt company could just decide to increase the monthly HOA fee from $160/mo to $200/mo. They could also decide instead of 8%/mo to manage the rentals, they want to charge 10%/mo. If the other Owners aren't engaged or involved in the HOA meetings (which most people choose not to be) this one company can have a field day. They could be mediocre at managing tenants and owners would have no recourse? Someone talk me off of the ledge.

Thoughts, feedback? Would you buy a property in the community?

[Joe Splitrock]

@Jasmine B. you have legitimate concerns. Sometimes the reason a development chooses to hire an exclusive company is to streamline operations. One company managing rental properties, so if there are issues, there is one company in charge. There can also be advantages in leasing, because perspective tenants looking at the complex would be able to see all available units working with one company. 

I generally do not like buying properties when an HOA is involved, because you loose too much control. Rules can change or extra costs can be assessed. If you are on the board, you have some control. I wouldn't want to spend that much money and be playing under someone else's rules.