When a condo association structures itself, one of the things it must decide is how to manage the property. There are three main ways to do this: self-management, self-management with employees, and professional management.
When a condo association chooses self-management, the board members take care of all property management duties, from ground maintenance to book keeping. This is the least expensive way to manage a property; however, board members may end up with duties they don't enjoy (like mowing the lawn) or aren't particularly good at (like accounting). And in this form of property management, things can get personal when the board has to tell a tenant who lost their job, who may also be a friend, that they have to catch up on their fees or get out. Sometimes, it's easier to have a third party deal with situations like these.
Self-Management with Employees
In this form of property management, the condo association will manage everything the property needs, except those things that require a specialized skill. For example, the board might write the monthly newsletter, but will hire someone to maintain the landscape or deal with the property's finances. The downside to this form of property management is that board members end up dealing with personnel issues, like figuring out insurance or other employee benefits.
In this form of property management, the board will pay a monthly fee to a professional management company to take care of the property. Most professional management companies base their monthly fee on the number of services they perform. They can offer a full suite of services or simply offer a la carte services. If a condo association hires a management company to keep someone on-site to oversee the property and also insists on a staff to hand out fresh towels to anyone sitting by the pool, that can get expensive. However, if the property is managed remotely and services are basic, the cost can be a little more manageable. A lot of the price variability also comes from the number of meetings the property management company is asked to attend with the board.
It is important for the board to carefully weigh its options when deciding on a management structure for the property. Board members can save money by taking on many of the management duties themselves, but what they save in money they spend in time. Every property is different and only the board knows what will work best for them.
For more information, contact a company like A Creative Property Management.Share