Management Companies

Started by MC4 • 6 replies • 1338 views

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MC4 (Florida)
Posts: 29

Posted:

I am in Florida and we are thinking of trying to change our management company. We are being told that we should get a management company that charges us by percentage instead of a flat fee. The one we have now charges us a flat fee of $1600 a month. What should we go with?

PeterB1 (Florida)
Posts: 257

Posted:

Unclear what 'percentage' might mean - a percentage of what dollar amounts.

We (Florida HOA)recently got bids from management companies and they were all based on the number of homes.

peter

RogerB (Colorado)
Posts: 5,067

Posted:

MC4, I stongly recommend using a dollar amount and never using a percentage of $?????? .

JonD1
Posts: 2,350

Posted:

The fee is based on a percentage of WHAT?

I would agree you should look for a dollar amount that is set. Any formula using a percentage might provide the MC a built in raise any time that amount grows.

Many MC companies provide a price per unit as a rough starting point.

EdC5 (Florida)
Posts: 117

Posted:

Quote:

Posted By PeterB1 on 12/03/2010 5:58 AM
Unclear what 'percentage' might mean - a percentage of what dollar amounts.

We (Florida HOA)recently got bids from management companies and they were all based on the number of homes.

peter

What you don't say is how many homes are in the association. I quote a per month fee but base that on the number of doors (homes) in the association.

Edward J Cooke, CMCA, LCAM

BarbaraD6 (Florida)
Posts: 347

Posted:

We also pay per door,prices ranged from $7.00-$8.00.

Barbara

EdC5 (Florida)
Posts: 117

Posted:

Quote:

Posted By BarbaraD6 on 12/05/2010 9:17 AM
We also pay per door,prices ranged from $7.00-$8.00.

Barbara

I would never manage any association for as little as $7-$8 a door. If the association has 100 homes, that's $700-$800 a month for answering phones, doing A/P-A/R, bidding contracts, etc. I start at $10 a door and go up from there.

Edward J Cooke, CMCA, LCAM

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