How We Got Here

If you were to read governing documents for community associations written in the days of old (OK…the 70s), you might well get the idea there was a vision that volunteer homeowners would gladly offer themselves up to lead and manage their communities. The assumption seemed to be that communities would be full of willing, qualified and able owners ready to handle all the business of running the not-for-profit organization. Little did anyone envision the legal and technical challenges that would become part of the effort, much less the time that would be required.

Nearly half a century later, reality has set in. Volunteer leaders need professionals to some extent if they are to serve and protect the interests of their members. Regulation, emerging and ever-changing law, technical expertise, and available time are all factors. Yet, it is well known in the business community that serving community associations can be tough. It is a specialty niche, and professionals working in the space understand that. They know that, as compared to working in other forms of real estate such as residential, rental and commercial, it takes more time to get things done, usually at a lower profit margin.

But community members don’t always recognize this. It’s money out of their pockets, so of course, they want to watch their costs. A DIY, price-only, bottom line mentality can significantly influence financial decisions. The true cost isn’t always recognized….until after the lawsuit…or the third time something has to be fixed….or community spirit goes south….or the special assessment hits…Suddenly the cost of quality professional service and advice doesn’t seem so high after all.

It is very easy to chalk this thought pattern up to the prototypical penny-pinching board. But the issue may be deeper. Boards of directors may fail to discern the difference between up-front price and long-term cost, between investment and expense. It may be a lack of vision and the inability to perceive value.

The Issue is TRUST

Typically, there are many missed opportunities to build trust and provide value to association members. Vision, communication, and leadership are the keys to the perception of value. And a key component of recognizing value is trust.

A challenge for professionals serving community associations is your clients might not fully trust you. Consciously or subconsciously, you might be Herb Tarlek to them.

Yes, Herb Tarlek, the occasionally abrasive, egotistical & self-absorbed salesman from the old sitcom WKRP in Cincinnati. He isn’t trusted, not only for his godawful sports jackets but because it is crystal clear he’s in it for himself. His approach is selfish and transactional. Sadly, attorneys and consultants are sometimes perceived in a similar way. Some clients feel your primary goal is creating opportunities for billable hours. The research you do in providing opinions can look like billable busywork to them. When management companies highlight the value of their services it might seem like manipulative self-promotion.

Some community association lawyers and management companies have a knack for building trust and proving value. As a consultant, I am viewed similarly, so I’ve been happy to apply the following concepts I’ve learned from these exceptional community association professionals.

• Ask More Questions: Lawyers who listen build partnerships. Those who ask questions get buy-in. Socratic training has benefits that transcend depositions and courtrooms.
• Simplify the Message: Ego will not permit many clients from admitting they do not understand what their lawyers are communicating. Many lawyers don’t help themselves by communicating strictly from their training and perspective, forgetting that communication is supposed to benefit the client. The old W.C. Fields quote works against you: “If you can’t dazzle them with brilliance, baffle them with [BS].” The more words you use, the more likely you’ll be perceived as the self-absorbed, egotistical Herb, trying to sell them a justification for the fees you are charging. Using plain English summaries, FAQ format and other tools can help to make the communication palatable and trustworthy.
• Use Humor: A little levity at the right time can build rapport and show clients there is a human behind the suit. So long as it’s genuine and you actually HAVE a sense of humor.
• Give a Little Away: There is great power in the zero invoice. Choosing a moment where you can give a client a break can make a significant impression. An $800 invoice detailing all the time and activity followed by an $800 courtesy discount shows value. It shows the client it’s not all about fees, and that the relationship is appreciated. I’ve also heard clients recount with appreciation conversations with attorneys noting, “He was nice enough to tell me he was turning the clock off during our conversation.”
• Give a Little Away (Part 2): Some law firms and management companies offer board training as part of their agreement. As soon as one is perceived as a consultant providing value, they are less likely to be perceived as a self-promoting salesman.