Why Hire a Professional Management Company to Manage Your Property?
Deciding whether or not your Condo or Homeowners’ Association needs a professional management company really boils down to two simple questions. First, we need to know . . .
What does a management company do? Generally speaking, a management company administers the business affairs of the Association. This includes arranging all meetings, safeguarding minutes and other records, developing and implementing the budget, performing full-service accounting, overseeing vendors to the community, and enforcing the rules and regulations in a uniform and fair fashion. There are many details to each of these items and each Association may want to add or subtract from the list. The management company reports to the Board of Directors, which sets policy for the association. That leads us to the second question . . .
Why can’t we do these things ourselves? Associations sometimes can and occasionally do self-manage. Some Associations have residents (members) with the ability who are willing to dedicate the time required. This may be one individual or perhaps several. With more than one volunteer, you may be able to take advantage of the special interests and talents of each. Some volunteers are knowledgeable in landscaping and enjoy it. Others may enjoy accounting or record keeping. Smaller associations (typically below 10 units) may in some instances find it more cost effective to manage the operations themselves rather than seeking outside professionals.
Association Board members are volunteers. Their motivation to serve is usually for the welfare of the Association. They often have families, full-time jobs or other interests and responsibilities that can keep them from providing the time required to properly manage an association on an ongoing basis. Many retirees quickly decide that retirement does not mean working full time for the Association! In larger associations, managing the business affairs of such can be a full-time job. A professional property management company alleviates this responsibility and assumes much of the liability as well.
For the greatest degree of management success, there must be well-defined communications and reporting procedures between the Board and management. When this is accomplished and the management company understands its parameters, continuity and synergy are established for the benefit of the Board and everyone.
Property managers are required by necessity to keep abreast of the latest developments within their profession by taking continuing education courses throughout the year. Therefore, Boards can generally rely on management companies to provide a broad depth of resources that may not be readily available to the average association and its volunteers.
Hiring an outside company relieves a Board of the burdens and rigors of daily property management. This means peace of mind for the Board and residents alike. Choosing the right management company allows you to enjoy your home and maintain the property values of your Association.
Please feel free to contact us at your convenience should you wish to engage in further discussion regarding the professional management of your community.