Why You Should Avoid Working with a Delaware LLC HOA Management Company
When the time comes for your neighborhood’s board of directors to elect a new Tampa homeowners association management company for assistance with accounting, records retention, administrative support, and more, it’s important that you understand exactly who you’re working with. At Wise Property Management, we’ve been serving homeowners associations (HOAs) in the Tampa Bay area since 1981. Our family-owned and operated company values transparency and treats clients with respect and care. Unfortunately, not all Tampa HOA management companies subscribe to the same ethical values.
In this article, we will discuss an important red flag that all neighborhoods should be aware of when shopping for Tampa homeowners association management services: the Delaware LLC. Working with a company that is licensed under a Delaware LLC can prove frustrating for both your board of directors and residents, so it’s important that you entrust your neighborhood to a transparent company with values, a company like Wise Property Management.
The Confidentiality Problem
Business owners often create a Delaware LLC to preserve their confidentiality. Unlike most states, which require an LLC to file articles of organization or a certificate of formation, Delaware doesn’t require the business owner to make the names and addresses of their members or managers available for public viewing. This is beneficial for the business owner, but it can lead to extremely frustrating circumstances for residents in your neighborhood.
Whenever a significant issue arises requiring high-level assistance, it can be nearly impossible to get in touch with a Delaware LLC since the identity of the “big boss” is ultimately a mystery. For instance, if a resident moves out and collects their security deposit refund, but the management company misspells the name of the resident, they won’t be able to cash in their refund. When they return to the neighborhood to get the issue sorted out, the on-site team may not be able to do anything. Now, your former resident is posting 1-star reviews online because the confidentiality of the Delaware LLC is making the process of getting a refund overly complicated.
Putting the Business Before the Consumer
Another drawback of partnering with a Delaware LLC for Tampa homeowners association management services is the fact that Delaware law tends to prop up corporations by offering them freedom of contract and supporting LLC oral operating agreements. Along with the Court of Chancery, a unique court with the sole purpose of adjudicating business disputes, these benefits allow businesses that are licensed under a Delaware LLC to protect themselves from a variety of claims and disputes.
Are you ready to work with a Tampa homeowners association management company that makes life easier for you and your board members and improves the value of your property? If so, submit our proposal request form today!