If the board of directors is feeling a bit overwhelmed, then you may start thinking about hiring a property manager. Making the decision to contract a property management company can be difficult. Are they worth it? Are they good? What will they do? We’ve put together an overview of what property managers do, the approximate cost, and the advantages and disadvantages of property managers.
Property management companies do pretty much everything! They deal directly with the residents in the HOA, they can handle complaints, and when necessary go after tenants who don’t pay fees or need to be evicted. They can help you find and screen residents, as well as doing any house checks you may need to do, to check smoke detectors and carbon monoxide detectors.
Since they deal with residents in the community, they’re responsible for creating and sending out a community newsletter and communicating any changes, events, repairs that might be going on. As they’re an independent company, they employ all staff instead of the HOA. So the property management company manages all concierges, and staff, setting their salaries, and firing them if necessary.
A property manager will take care of all maintenance and repair problems, including emergency repairs. They’re responsible for filing taxes for the property, and investment property, and providing the documents to file the taxes. A property manager can also create monthly income and expenditure reports to help create the yearly budget, and keep track of the association’s finances.
This depends on several factors, including the size of the community, the type of property, (commercial, single family homes, multi-family properties or investment property). The property’s condition is important too, if the property is new, or it’s been recently renovated then there should be less maintenance issues. Then, you have the location, if the property is in a very expensive area, this may push up a property management company’s fees. The last factor is the extent of the property manager’s services, there’s a big difference if they’re collecting fees or running every aspect of the association.
Having said that, property management companies either charge per unit, typically $10-$20, or a percentage of the gross monthly income, normally 4% to 10%, or a flat fee which could be anywhere between $2,000 or upwards of $50,000 depending on the factors above.
-It can be expensive, you can see the figures above, it’s a lot of money to spend on something you’re doing yourself.
-The board of directors will have less control over what is going on in your community. While a property management company can be great if the relationship sours then managing the community together gets very difficult.
-If you spend the money on a property management company the board won’t have to be so bogged down by doing every aspect of managing a community. They could focus on the important aspects, while the property manager does the rest.
-You can make sure that you have a good relationship with your property manager by doing an extensive search for the best property management company for your community. When you know what you want then it’s easier to go out and find it. You can also ask other HOAs what property management companies they use and what they think. Recommendations are always very helpful in making big decisions.
-It’s their job to keep up with State laws. At the start of this year, Florida approved a whole host of new laws around HOA management and transparency, a property management company makes this transition smooth. You’ll never be at risk of violating rules with a good property management company.
-They also do everything mentioned above, which makes life a lot easier for the board of directors. It can be hard getting people to volunteer for the board, but when the board doesn’t have to deal with every single aspect of managing the community, it might make it easier to persuade people to join.
While property managers are expensive, a good property management company is priceless. They can make life in a community much better, and managing one so much easier and more enjoyable, since they can take care of almost everything in your association.
Vinteum is the developer behind products like Vinteum Neigbrs, a web and mobile solution that connects residents and property managers. Our mission is to improve the quality of service provided by property managers and make their lives easier. We leverage the power of technology and efficiency, coupled with an incredible design, to create open communication between residents, boards of directors and property managers. In order to achieve this effect, we utilize a wide range of tools such as community-wide notices, a private social network, secure document storage, personalized websites, and so much more.