The pros and cons of self-managed condo associations can shed some light on which course of action makes the most sense for you. Self-managing any business can take a lot of time and effort, and condo associations are no different. Even if you’re passionate about it, everything from maintenance to regular financial reporting can take a toll. Hiring a management company can provide relief from the stress of those responsibilities. At the same time, you may find that using a “middleman” removes much of your control over decisions and other aspects of management.
Decisions and community success affect managers on a more personal level if they own the property they’re running. Ownership leads to an increased level of sensitivity when receiving the details of resident concerns, and there is more gravity when handling expenses on the association’s behalf.
Management companies remove many of the decisions from the hands of the association Board. Finances, policy adjustments and the oversight for all projects fall to the company. This loss of control can be an obstacle for Board members who have specific goals and agendas that they would like to achieve.
Without a professional management company, they can adjust scheduling, timing and funding. This freedom allows them to complete their goals within a much faster timeframe. At the same time, some Board members have more work than others making the workload unbalanced. When only a few members carry the burden, they may overlook issues, and missteps are more common. Using a third-party management company removes this kind of unfair work distribution. It also permits all homeowners to enjoy the time they have in the community.
Boards tend to prefer saving money through self-management instead of paying someone else to do the same job. Management companies can cost an average of $50,000 per year. Your association’s amenities and size affect this number. If that cash doesn’t go to a management company, the same amount of money could be put toward renovations, landscaping or even reduced fees for community members.
People often spend more money on costs and issues than they saved by not hiring a professional management team. In many cases, trained managers could have avoided the same problems. A build-up of delayed maintenance or financial mistakes can cost more than hiring a professional management company.
If you’ve weighed the pros and cons of self-managed condo associations and are interested in reliable condominium property management services, contact the experts at Ardent Residential today. We can help you understand your next steps and answer any questions you have about the running of your association.