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I posted this a few weeks ago but thought I'd put it out again to see if I can get a little more feedback. Our managing agent has been getting a 3 - 3.5% increase on their very reasonable fee each year for the past 5 or 6 years. This year the board is proposing a 1.5% increase. I asked why (this is my first year back on the board after a 6 year absence) and was told it was just a general interest in keeping costs down. This agent was hired during my previous tenure and has turned the building around. The reduction in the increase is not based on any financial or building-wide performance issues. There are a number of people (board members and other shareholders) who find the management to be difficult to deal with and to have an unpleasant personality and I believe the reduction is a punitive response. I think an increase lower than the rate of inflation will have the opposite of the intended effect of creating a more pleasant relationship. I would prefer the Board communicate directly with the Management about the issue and offer to pay for a course in "Professional Communications" at the American Management Association before resorting to such punitive measures. Any thoughts?
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Congratulations. Your approach is both professional and fair. To simply lower an expected increase without clarifying the reasoning behind it will, no doubt, foster anger and cause an increase in unpleasant experiences. A meeting between the head of the management company and the board should be called and a conversation take place explaining what the problems are. At the conclusion of the meeting the board needs to evaluate whether or not to continue with this company. I agree that a course in professional communication could go a long way in fostering good relations. Good luck.
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