DrD (Maryland)
Posts: 2
Posts: 2
Posted:
How much a management company should charge an HOA per unit per month (in MD) in "Management Fees"?
Thank you.
Thank you.
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HOA Management Fee
Started by DrD • 7 replies • 1020 views
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TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
They all vary.
It depends on the number of lots/units and the terms of the contract (what are they expected to do).
Where you are located can be a factor as well.
In the greater DC area, $40K to $50K for the year wouldn't be uncommon
It depends on the number of lots/units and the terms of the contract (what are they expected to do).
Where you are located can be a factor as well.
In the greater DC area, $40K to $50K for the year wouldn't be uncommon
DrD (Maryland)
Posts: 2
Posts: 2
Posted:
I imagine this depends on the size. Price per unit would be a bit more informative. Range? Ball park?
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Contact 2 -3 of them and get some bids. That should give you an idea of what management companies charge in your area. We usually have a 3 bid policy anyways on any contract position. So it's just a good business practice to get various bids.
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TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
Price per unit depends on association size as well.
A MC has a bottom line price they have to have (regardless of the size). Based on that bottom line, smaller Associations will have a higher price per unit then larger Associations.
The terms of the contract will cause variations of the price as well.
Don't forget any add-ons (postage, per letter cost, disclosure packages, etc.).
My Associaition is 130 lots and self managed.
We do hire independent contractor for book keeping. We allocate $4500 for this.
A CPA wanted $1,000 per month.
Costs for similar services from banks varied as well.
Do you need the MC to handle an annual inspection?
If you do, the size and type of Association will also indicate costs. Town-home developments don't require as many hours to inspect as detached homes on 1/2 acre lot.
Bottom line, the cost per unit will vary from State to State, County to County and Association to Association.
The ball park I provided, in my opinion, was the bottom line for a full service MC in the greater DC metro area. Take that price and divide it by the number of lots/units you have for a per unit cost.
However, don't bank on those numbers.
Instead, put together a request for proposal (tells a little bit about your Association and what you expect from the MC - i.e. their duties) and send it to two or three. The MC will be happy to visit the site, talk to you about your expectations and give you a bid. A few hours to write the RFP, a few stamps to mail them out, a few more hours for a sales pitch and walk around the development will get you numbers you can bank on.
A MC has a bottom line price they have to have (regardless of the size). Based on that bottom line, smaller Associations will have a higher price per unit then larger Associations.
The terms of the contract will cause variations of the price as well.
Don't forget any add-ons (postage, per letter cost, disclosure packages, etc.).
My Associaition is 130 lots and self managed.
We do hire independent contractor for book keeping. We allocate $4500 for this.
A CPA wanted $1,000 per month.
Costs for similar services from banks varied as well.
Do you need the MC to handle an annual inspection?
If you do, the size and type of Association will also indicate costs. Town-home developments don't require as many hours to inspect as detached homes on 1/2 acre lot.
Bottom line, the cost per unit will vary from State to State, County to County and Association to Association.
The ball park I provided, in my opinion, was the bottom line for a full service MC in the greater DC metro area. Take that price and divide it by the number of lots/units you have for a per unit cost.
However, don't bank on those numbers.
Instead, put together a request for proposal (tells a little bit about your Association and what you expect from the MC - i.e. their duties) and send it to two or three. The MC will be happy to visit the site, talk to you about your expectations and give you a bid. A few hours to write the RFP, a few stamps to mail them out, a few more hours for a sales pitch and walk around the development will get you numbers you can bank on.
CarlS4 (Minnesota)
Posts: 1
Posts: 1
Posted:
$13 to $17 here in MN - depending on the size and services.
I do a regular survey of associations. Cheapest was $7.50 - not sure what they get for that.
Most expensive was $24 - again - not sure what they get for that. Those two were outliers.
If you have community amenities like pools and community rooms, that should cost more.
I do a regular survey of associations. Cheapest was $7.50 - not sure what they get for that.
Most expensive was $24 - again - not sure what they get for that. Those two were outliers.
If you have community amenities like pools and community rooms, that should cost more.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
112 standalone homes. Dues go to a bank lock box then to the MC. MC pays all bills. Monthly financial reports down to the penny. Handles violation notices from the BOD but no site visits. Handles past dues collection then hands off to attorney. Attends and reports financials at Annual Meeting. Mailings are extra. Handles about 8-10 calls per month from the BOD about various things.
$650 per month with misc. running about $50 per month. Bank expenses $500 per year so we spend about $9K per year with them
$650 per month with misc. running about $50 per month. Bank expenses $500 per year so we spend about $9K per year with them
TimM11
Posts: 354
Posts: 354
Posted:
Quote:
Posted By CarlS4 on 11/17/2017 1:22 PM
$13 to $17 here in MN - depending on the size and services.
I do a regular survey of associations. Cheapest was $7.50 - not sure what they get for that.
Most expensive was $24 - again - not sure what they get for that. Those two were outliers.
If you have community amenities like pools and community rooms, that should cost more.
$13 to $17 here in MN - depending on the size and services.
I do a regular survey of associations. Cheapest was $7.50 - not sure what they get for that.
Most expensive was $24 - again - not sure what they get for that. Those two were outliers.
If you have community amenities like pools and community rooms, that should cost more.
I'm in MN as well. $13 sounds about right for the low end, but I don't think $24 is all that unusual or even on the really high side. We pay a bit less than that ourselves. As you note, a lot depends on what all the MC has to take care of. Location probably plays a role too.
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