How to Switch HOA Management Companies in Texas: Step-by-Step

Changing managers is one of the biggest decisions a board makes. Done well, owners barely notice. Done badly, records, money, and vendor relationships fall through the cracks.

Last reviewed November 1, 2026

Step 1: Diagnose the problem

Before switching, name what's not working: slow responses, accounting errors, missed inspections, vendor overspending, poor owner communication, or simply cost. Write it down. You'll use the list to interview replacements, and sometimes it reveals that the fix is a different manager at the same company, not a new company.

Step 2: Read your current contract

Find and note:

• Term and renewal (does it auto-renew?)
• Termination clause — with or without cause, notice period, required form of notice
• Transition and record-turnover obligations and any fees for them
• Who owns the website, email lists, and portal data
• Bank account signers and any company-controlled accounts

Have the association's attorney review the agreement before you send anything.

Step 3: Run a fair selection (RFP)

1. Write a one-page RFP: community size, amenities, number of units/lots, budget, services needed (full-service, financial-only, or a hybrid), and your problem list from Step 1.
2. Invite three to five companies. Ask each for a sample financial package, a sample management agreement, references from similar communities, the proposed manager's portfolio size, and the fee schedule (including add-ons such as resale certificates, collections, and mailings).
3. Interview the actual community manager, not just the sales lead.
4. Compare proposals on a single sheet. Price is only one column.

Step 4: Board decision and notice

Vote at a properly noticed board meeting (see Texas law: open meetings). Then send termination notice in the exact form the contract requires and sign the new agreement. Agree on a target transition date with both companies.

Step 5: Transition checklist

Records to demand from the outgoing company

The association owns these. Ask for them in writing, in electronic format where possible:

• Governing documents: declaration and amendments, bylaws, certificate of formation, rules, policies (including those required by Chapter 209), and recorded management certificates
• Owner roster with mailing and email addresses, and owner ledgers with balances
• Delinquency and collections files, payment plans, and any accounts with the attorney or a collection agent
• Bank statements, reconciliations, general ledger, budgets, audits/reviews, and tax returns
• Reserve study and capital project files
• All vendor contracts, certificates of insurance, and warranties
• Insurance policies and claim history
• Board meeting minutes, annual meeting minutes, election records and ballots (subject to retention rules)
• Violation and architectural request files
• Keys, access cards, gate codes, alarm codes, and website/domain/social media logins

Step 6: Communicate with owners

Owners mostly care about three things: where to pay, who to call, and whether anything will change for them. Send a short letter and email before cutover and again after. Use the notice template style: plain, dated, and signed by the board.