If we change managing agents, will that reduce the maintenance fee or reserve requirements?
Changing your managing agent (or board) is unlikely to reduce your
maintenance fee. This question is often asked when there have been no or little
maintenance fee increases for several years and a new managing agent or new
board raises maintenance fees to establish the new reserve. Your new board or
managing agent are not just imposing an arbitrary increase. They are following
the law. Under the prior law, boards and managing agents who were reluctant to
increase maintenance fees could defer maintenance and put little or no money in
reserves. The maintenance fee was low only because it did not cover the true
cost of operating the project. Owners were not avoiding that cost, only
postponing it. Eventually, they paid the true cost through large special
assessments.
The reserves law prohibits those practices. It requires reserve planning and collection no matter who serves as your board or managing agent. Therefore, your old board and managing agent will be subject to the same legal requirements on reserves as your new board.
The reserves law prohibits those practices. It requires reserve planning and collection no matter who serves as your board or managing agent. Therefore, your old board and managing agent will be subject to the same legal requirements on reserves as your new board.

