Factors HOA’s Should Consider in Evaluating Need for Professional Management
When is it beneficial for a homeowners association to employ professional management? Without regard to issues about a particular manager, or management company, every homeowners association could benefit from professional management services, but often association boards decide to forego the expense thinking that a professional manager is not necessary for their association. In deciding whether or not to employ professional management, association boards of directors should consider the following factors:
- Size of the common interest development and the extent of common areas and facilities.
- Scope of association maintenance and repair responsibilities.
- Uniformity of improvements within the development.
- Evidence of construction defects and resulting shortfalls in reserves.
- Relative ownership income levels and absentee owners.
- Pattern of owner apathy toward the community association.
- Need to manage the association in a business-like fashion.
- Governing documents provisions re professional management.
- Lender requirements.
- Additional cost considerations.
The operations of a community homeowners association entail expertise at many different levels. The management of a homeowners association by a handful of people that change every year or two make it very difficult for effective prolonged operations. It is very difficult for self managed HOAs to stay on top of all of the legal requirements imposed on homeowners associations and frequently self managed HOAs have problems that stem from the association’s failure to operate properly over a lengthy period of time. The problem gets compounded because it becomes more and more difficult to get on the right track with the passage of time. This ultimately results in a lack of a willingness to participate on the association’s board of directors. On balance, the investment in professional management is a prudent investment. The trick is to find competent management that is affordable and a proper fit for your association taking all of the above factors into consideration.
Our affiliate, All Property Management, will quickly connect you with the property manager that best fits your association’s needs.