Evaluate Your Management Situation – Part 2

HOA Management Companies Uncategorized

Following up on last week’s post How to Evaluate Your Management Situation – Part 1, here is a chart that compares the advantages and disadvantages of different forms of management for your Community Association. The 3 most popular methods of management – Volunteer/Self-Management, Association-Employed Manager, and Management Company – are compared to each other according to Cost, Continuity, and Professionalism.

COMPARING THE DIFFERENT FORMS OF COMMUNITY MANAGEMENT

Volunteer/Self     Management

Association-Employed Manager

Management Company

Cost

Pros: No out-of-pocket management fees. Ideal for smaller associations of 10 units or less.

Pros: Association has total hiring and management power over the community manager.

Manager can serve to execute the directives set by the board, relieving board members of this burden.

 

Pros: Management is handled by a professional company. Manager serves to advise and execute on decisions made by the community board members.

Manager typically has experience and resources to draw on when advising board members on the best deicisons to make.

Larger management companies offer additional resources such as insurance discounts

Cons: Requires investment of time and effort by the homeowners.

A lack of knowledge about the management industry can lead to unnecessary extra costs or project delays.

Cons: There must be a great enough reason to put Association funds towards hiring a professional.

 Additional costs may be incurred for temporary replacements due to absence, termination, or resignation

Cons: Also need to justify putting Association funds towards hiring a professional service.

 Routine Management is provided at a fixed monthly cost.

Continuity

Difficult because of  volunteer burnout and the fact that activity is discretionary for the volunteer

Continuity depends on individual hired and associations can be held hostage by the intellectual power held by the employee.

Has a succession plan always in place to ensure continuity should a manager no longer be able to provide services. Also shares community knowledge so board members have access to it.

Professionalism

Depends on the skills and experience of those homeowners who volunteer

Depends on the individual hired, which is dependent on the ability of board members to evaluate the level of industry knowledge applicants posses.

Relies on the management company to hire professional and knowledgable personnel. Many require their managers to possess some level of accredidation.

 
No one management solution is right for every association. The best fit is dependent on the skills and resources available at your community’s disposal. Make sure you have thoroughly vetted through all available options to ensure that you find the right solution that provides the level of service you need at a cost that you can afford. The Management Trust sincerely hopes your management needs are being met and would be happy to help you evaluate your management needs, even if we are not the right fit for you. If you would like this assistance we invite you to contact us today.
Article by Tea Fant: The Management Trust– NW

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