CONFLICT OF INTEREST?

By Rafael Aquino

Published May 22, 2019  

 

I believe more needs to be done to protect condo and homeowner associations when it comes to management companies providing additional services like painting, landscaping, irrigation, insurance, water restoration, lending money for capital projects or the purchase of the HOA clubhouse and the list goes on. It has become so lucrative that even smaller to medium size management firms have gotten into the game.

 

In my opinion, I believe a double standard exists because some, not all, of these organizations have lobbyist protecting their interest and not the associations. Let me put it this way, how can legislation pass not allowing board members to hire companies in which the board member owns one (1) percent interest but yet a management company, with a simple disclosure in an agreement, can push all its companies onto the association. Do you find that to be fair or ethical? I don’t!

 

Some may say, well if they can provide a similar service for a better price, what's the problem? The problem is, how do you know that’s the best service or price? How do you know the proposal or RFP process was not rigged to the benefit of the management company? As the manager of the association, you have direct access to all the proposals, the discussions had with each vendor and inside knowledge not privy to the other vendors. Furthermore, if the management company was in charge of sending the RFP to two different companies, how do you know they didn’t send it to the most expensive companies in town, so their proposal shines? If you weigh the pros and cons of this kind of situation, you will see that you have more to lose than you think.

 

Better yet, this kind of practice has made it harder for board members to get apples to apples comparison when considering a change in management because the management companies that have an interest in all these other organizations will come in with a rock bottom management price knowing they can make it up with the other services. As a board member, you should always remember… “There’s no free lunch.”

 

I’m curious to hear from our readers, are you ok with having your management company bring in companies in which they have an ownership stake? Do you believe it’s a conflict of interest or a benefit?
HTML Comment Box is loading comments...

 

 

  

As the Co-Founder and CEO of Affinity Management Services, Rafael P. Aquino leads his team to redefine excellence. They serve community   associations   efficiently

and effectively with dedication and passion. Rafael’s energy and positive spirit is the foundation of Affinity Management Services’ company culture, which instills enthusiasm and excitement when providing expert advice to its board members and relieving the day-to-day burdens of running a community association.

 

Since 2007, Rafael has developed a work culture that values responsive and high-quality services. He has led his team by following a proactive vs reactive philosophy. The same approach Rafael instills in the day to day operations of each association. Today, Affinity Management Services maintains its success and benefits as a result of the foundation Rafael has built and continues to foster by providing educational seminars, continuing education classes for association managers and board members alike.


Rafael and his team help condominium and homeowners’ associations save money and improve their communities. His calm, personable, and service-oriented nature helps him to establish strong relationships with ease. Rafael is known as a sincere and honest leader who looks out for the best interests of his clients and communities, and he strongly advocates for their needs. His role requires coordination and communication, as such he takes logical and intelligent steps to approach challenges head-on.


As a graduate of Florida International University’s electrical engineering program and a licensed community association manager, Rafael’s education and skills equip him with unique insights to tackle complex problems through critical thinking. He understands how each component within a system works together in order to effectively arrive at solutions, techniques, and conclusions. Therefore, as he manages the multiple challenges of running a community association management company, he understands how each property is its own unique system and tailors’ specific services to assure that all their needs are met.

For more information about Rafael P. Aquino and Affinity Management Services please visit www.ManagedByAffinity.com or call 1-800-977-6279

Doral Office: 8200 NW 41st ST

Suite 200

Doral, FL 33166

Broward Office: 150 S Pine Island RD Suite 300

Plantation, FL 33324

O: 800-977-6279 ● F: 305-325-4053

Sign up for Email Updates
Email:  
For Email Newsletters you can trust