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Fees For Community Association Managers

  
  
  
  
  

Is there a "general rule of thumb" in bidding on the property management of condo associations and HOAs.? I realize it depends on all the tasks performed, but I have seen prices range from $12 to $40 per door for generally doing the same things.

Comments

We are a condo association in Boston and pay about $32.50 per door per month to our property management firm
Posted @ Sunday, October 04, 2009 8:34 PM by Stephen
As a "property manager" working as a portfolio manager for a management firm, I find those statements and the way that it is looked at frustrating. 
 
Do you look at your lawn care like that? Your building maintenance? Any other obligation? 
 
First, you need to look at multiple factors when bidding out your services. The most important thing is to know what you need and what you want. When you have lawn bids like that - so across the board - how do you deal with it? 
 
It is important to know what you want and to know what you need. What can you do with volunteer labor? What can't you do? What are your expectations? Have you looked at the experience and training of the firm? What affiliations do they have? Have you talked to board members from other communities they manage? 
 
How does the community look? 
 
You and your management agent should be a team. You are making the decisions and liable for those decisions. They are advising you and implementing your decisions. In my experience, I find that many boards at the outset have many unsaid or unstated expectations. This creates a poor working relationship. Many communities expect the management agent to manage violations, but the understanding of what that means varies. Some expect the manager to go out, find, report and begin the violation process. Others do not and only want violations dealt with as needed. 
 
Some expect their manager to be an "expert" in maintenance, repair and replacement. Often, we are just a facilitator, bringing you the qualified people to help you maintain, repair and replace those items and keep the costs reasonable. 
 
Knowing what you need, want and expect will go a long way toward obtaining better bids. Develop a good specification just as you would for lawn, snow, painting, etc. with the help of your attorney. 
 
Posted @ Monday, October 05, 2009 8:30 AM by Joe Schuirmann
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