Management Fees for small community?

Started by DR5 • 5 replies • 1416 views

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DR5 (Virginia)
Posts: 2

Posted:

How much do you pay your management company per year if your neighborhood is small? And is it for full service or only financial services?
Ours is around 30 single family homes in Virginia, and we are shopping around for a new management company.

TimB4 (Tennessee)
Posts: 21,059

Posted:

DR,

Management companies typically charge based on the number of homes.

We are a small community (130 lots) and instead of using a management company, we have employed independent contractors to perform bookkeeping services. This has proven to be less costly then utilizing a MC or PM and still provides the needed transfer of workload to keep members volunteering.

JerryD5 (Colorado)
Posts: 218

Posted:

I truly think it depends on a bunch of services the company provides your small community:

How many meetings do you hold each year?
Do they make property inspections and how many times per month?
Is there any common area that requires a lot of oversight (like pool maintenance, landscaping, etc)

Our MC attends 4 quarterly and 1 annual meeting per year. Each additional meeting we have requires us to pay them $75 per hour.
They make property inspections on our behalf every other week. They send out violations, if any, after each inspection
We are a community of 63 single family homes in a green court set up. They oversee our landscaping and snow removal contracts ($20,000 per year).

We recently downsized our community (from 118 to 63 earlier this year). Our fees went from $750 to $675. They also charge $25 per month for our assocation website.

I hope that helps.

DR5 (Virginia)
Posts: 2

Posted:

Quote:

Posted By JerryD5 on 10/27/2014 1:39 PM
I truly think it depends on a bunch of services the company provides your small community:

How many meetings do you hold each year?
Do they make property inspections and how many times per month?
Is there any common area that requires a lot of oversight (like pool maintenance, landscaping, etc)

Our MC attends 4 quarterly and 1 annual meeting per year. Each additional meeting we have requires us to pay them $75 per hour.
They make property inspections on our behalf every other week. They send out violations, if any, after each inspection
We are a community of 63 single family homes in a green court set up. They oversee our landscaping and snow removal contracts ($20,000 per year).

We recently downsized our community (from 118 to 63 earlier this year). Our fees went from $750 to $675. They also charge $25 per month for our assocation website.

I hope that helps.

Only one annual meeting, no property inspections, just one common area for landscaping, no oversight around 1/2 acre.
Is $20,000 including all the landscaping etc contracts?
We were looking for just the fee that you pay to the management company (full service vs. just financial)

NpS (Pennsylvania)
Posts: 4,216

Posted:

$9 per unit per month for accounting/financials. Includes web portal online access, non-email correspondence, and attendance at 2 meetings per year. No site inspections.

Sikubali jukumu. Read all posts at your own risk.

TimB4 (Tennessee)
Posts: 21,059

Posted:

DR,

We pay our independent contractor $350 per month ($4,200 per year) to provide bookkeeping services, check the mail, maintain the membership list and send out the initial letters of being late paying assessments.

It is typically someone from within the membership who takes this position (I know, there are pros and cons to this).

Even with an MC, the Board should still be paying the bills, awarding the contracts, checking up on work done by contractors, etc.

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