It is necessary for the board to have a proper understanding of the role of the managing agent. The board must remain in control of the association, and it does not have the authority to delegate its fiduciary duties to the managing agent. The board members must keep themselves reasonably informed regarding the managing agent's activities and retain control. All policy decisions, major purchasing, expenditures, and operating decisions must be made by the board of managers in consultation with the managing agent. While the managing agent may recommend a course of action, and will carry out the plan after it has been adopted by the board, it is the board of managers who remain responsible.

The managing agent should provide a monthly report to the board members showing all activity for the previous month, financial statements, correspondence, and progress reports. The board members must review this material and make sure they understand it.

In many ways, the retention of a managing agent is like entering into a business partnership. For this reason, it is essential that a board have an appropriate written management contract that specifies what work will be done, what the fees will be, and what happens when the contract terminates. A competent attorney must be retained to assist the board.

With regard to the hiring or retention of personnel and contractors to perform repair and maintenance work and to operate the association, the managing agent should be able to present bids for the board's determination. Customarily, the agent is given general authority to retain workers to perform small and inexpensive repairs from time to time.

It is sometimes stated that a board must obtain at least three bids. It is possible that less than three or more than three bids may be needed, depending upon the circumstances. The board must exercise business judgment. For very large projects where there may be a huge difference in price, numerous bids may be necessary. In addition, the board may want to consider bidding out through different sources than merely through the managing agent. The board must be especially careful to act independently when seeking to hire an accountant or attorney because it is preferable for these professionals to be loyal to the association board instead of to the managing agents who may retain them.