When people invest in a property, one of the most common tips to ensure success is to get a property manager who can oversee the day-to-day operations. However, the reach of these professionals is often limited to a single property, which may be inefficient for maintaining multiple houses in a planned community.
After all, Homeowners Associations are similar to a secondary government that does more than just collect dues and tell owners what color to paint their buildings. HOAs also ensure legal compliance, perform general maintenance of shared amenities, and even help with conflict resolution. Continue reading this article below when HOA property managers are worth hiring.
Cost vs Value of Having HOA Property Managers
Typical Management Fees
When deciding if a service is worth the extra expense, a major consideration is how much value it provides versus the ongoing cost. As a result, we have to examine typical management fees. Most HOA property managers determine their price by charging a flat fee for the entire community, or a monthly fee per unit. Of course, these prices are also dependent on other factors such as size, location, and service level. This means a basic package for performing administrative tasks and financial reporting for multiple properties in a medium-income neighborhood looks different from the fees of a full-service package that includes legal support and maintenance supervision in a more high-income area.
Importance of Professional Oversight
Hire a Philadelphia HOA property manager to help align management decisions with the community’s needs. These professionals bring structure and experience that ensure that the HOA rules are enforced fairly, finances are tracked accurately, and legal requirements are met. Since these tasks would otherwise be the responsibility of the board members, HOA managers can reduce their burnout while lowering the risk of mismanagement. Besides, their industry knowledge can also help HOAs negotiate better vendor contracts and respond effectively to emergencies.
Building Long-Term Savings
While hiring a property manager adds an ongoing cost, it can also prevent costly mistakes. For example, if several properties in your neighborhood are due for a roof replacement, your HOA can negotiate with a reputable roof contractor to complete the task at a discount. They’ll also be in charge of monitoring the renovation, which reduces major expenses for each house and protects their property value long-term. This benefit also applies to ongoing maintenance needs such as pool clean-ups, snow removal, and utility negotiations. Over time, better financial management and fewer legal issues can save the HOA high costs, worth more than their professional fees.
Situations Where HOA Property Managers are Most Valuable
Managing a Large Community
Communities with detailed HOA rules and regulations help enforce standards consistently in the community, especially when there are several units. As the number of houses increases, so does the workload, and that can quickly become overwhelming for volunteer board members to handle alone. As a result, hiring an expert who can dedicate time and expertise to consistent financial transactions, rule enforcement issues, and communication demands would make HOA management smoother. Besides, there’s also the benefit of having a neutral third party during conflict resolutions, which can provide a buffer to neighborhood politics.
Fast-changing Legal and Regulatory Landscape
Another reason HOA managers are valuable is that they can help communities easily navigate changing landscapes with ease. For instance, new government laws on property taxes and water usage make it necessary for homeowners to adapt, and it’s much easier to do this when you have a person whose responsibility is to stay updated and educate shareholders. After all, professional managers are mandated to attend continuing education on state statutes, which puts them in a better position to ensure the board remains legally compliant. Also, in the event of a sale or lawsuit, your HOA manager can archive the meeting minutes and financial statements, which could be valuable in the future.
Navigating Major Capital Improvement Projects
As we highlighted earlier, there are advantages to having an HOA manager when tackling major projects such as a roof replacement or even total repaving of private roads. That’s because, through professional scrutiny, they can help you pick the cheapest option, with the best warranty and insurance coverage. More so, their expertise in project supervision can make them valuable representatives who ensure contractors stick to their timeline and use specified materials.
Key Questions to Ask Before Hiring an HOA Property Manager
What Services Are Included in the Management Fee?
Not all management contracts cover the same services. As a result, it’s essential to clarify what is included in the package you’re considering, and whether it fits your needs. If you’re looking for services that include conflict resolution, then it would be best to ensure you’re not just paying for maintenance coordination and financial management. It would also be helpful to inquire about extra charges for transparency’s sake. Some HOA management companies charge separately for after-hour emergencies and legal support.
What is Your Manager-to-Property Ratio?
If you live in a large community, it’s also important to ask the management company how many managers they have to ensure they can manage your HOA effectively. Unfortunately, some firms overload their managers with 15 or 20 properties to maximize their own profit, which comes at the expense of rule enforcement and missed site inspections. This is why experts often recommend looking for a ratio of 1:8 at most, to ensure the manager can effectively cope with the community’s specific needs.
How Will You Handle Communication and Accountability?
Effective communication is essential for smooth HOA operations. So ask how often the company will provide financial reports, or how they plan to handle resident complaints. Understanding the management company’s approach to these essential processes will reduce misunderstandings and keep everyone aligned. It would also be beneficial to ask how much experience they have with similar projects, as that can help you infer about your accountability.
Conclusion
Hiring an HOA property manager is worth it when you’re looking to ensure a large community stays legally compliant and well-maintained. That’s because these professionals bring management expertise that can help you save money through negotiations with vendors and bulk maintenance oversight. In the long-run, they can prevent costly mistakes and protect property values in your HOA.
