License. Currently, there is no requirement that managers and management companies be licensed Realtors to manage homeowners associations. However, that is not the case for stock cooperative managers. Because cooperatives have occupancy agreements and leases, the relationship between the cooperative and members remains a landlord-tenant relationship. Because of that relationship, because the apartments are leased, because the tenant payments are considered rents, California's Department of Real Estate requires that a licensed broker supervise the trust accounts for stock cooperatives.

Certification. Boards should ask if (i) the management company is certified as a community manager, (ii) the property supervisors are certified, and (iii) the company is insured.