Property Management Fees

The last time I looked at our contract (while I was on the board), it was about $3K a month, but there are too many variables to consider. A company in Los Angeles might not charge the same as one in St. Paul, even though both communities may be a townhouse community with 200 units. You also have to consider the items the association is responsible for - the more stuff, the more it will cost. Some companies are one stop shows where they do virtually everything (like our property manager), while others may only handle bookkeeping and board members do everything else.

It may be interesting to see what others are paying, but if you're looking to save money, you need to look at your local market. Begin by considering what your current management company does (check your contract) and if there are tasks that could be handled by other companies or if there are services you no longer need and consider renegotiating the fees.

You could also contact other property management companies and see if you can get a bid - they won't give you this information over the phone, nor should they (they should come out to your community to see what you have and what you're looking for). Or, you can see if the Community Association Institute has a local chapter in your area - it may be able to get you in touch with member HOAs that are similar to yours and you can contact their boards to see what they say.

All communities are not alike. Per the Operating Cost manual published by the DRE costs can be up to $50.00 per door. Many management companies will bid between $8-$10 per door no matter the type of complex. You can get financial only through full service. Personally speaking, I wouldn't bid on a complex unless I see a current balance and income statement. I would like to know what I am getting into and how complex the operation and then tailor a plan around their specific needs.

Some Boards are hands on and some Boards do nothing. Costs have to be reflective of that. Because of the constraints of the Open Meeting Act, the MC may need to attend more meetings and prepare more documentation.