LilW (Utah)
Posts: 6
Posts: 6
Posted:
Hi. I have an 18-unit condo complex in Utah and am wondering what is reasonable to expect to pay an outside management company for such a small complex. Can anyone tell me how their rates compare?
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Cost for Managing Small HOA's
Started by LilW • 9 replies • 1446 views
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JoanneL (Virginia)
Posts: 22
Posts: 22
Posted:
I think it would depend on how much authority you want the property manager to handle - from something as simple as doing on-site inspections and make recommendations of where to spend funds. Or do you want a property manager that handles everything - dues collection, notify delinquent owners and take steps to collect, on-site inspection of property, notify violators, attend monthly board meetings to report on funds available and make recommendations of where to spend funds, solicit bids and pay vendors. Some large HOA have property managers to handle everything and just report back to the board.
I am in a small association (9 units). Two members are on our board and have authority to sign checks to pay vendors. Our association meets once a year (unless an emergency repair arises) to vote on allocating funds for improvement/maintenance to the common area. Some members volunteer to solicit bids. Because everyone works, it is hard to find vendors willing to come on the weekend to submit estimates. After we get some estimates, we hold another meeting for members to vote on who they want to hire. It takes a long time to get work done in my neighborhood.
I am in a small association (9 units). Two members are on our board and have authority to sign checks to pay vendors. Our association meets once a year (unless an emergency repair arises) to vote on allocating funds for improvement/maintenance to the common area. Some members volunteer to solicit bids. Because everyone works, it is hard to find vendors willing to come on the weekend to submit estimates. After we get some estimates, we hold another meeting for members to vote on who they want to hire. It takes a long time to get work done in my neighborhood.
DonnaS (Tennessee)
Posts: 5,671
Posts: 5,671
Posted:
Lil,
With only 18 units, have you looked into self management? Are all of the units occupied by owners or are some rentals? How many are on your Board and are you, the members all involved in the association business? There is a wealth of information for doing this yourselves and the cost savings would be good for all of the membership.
DaranJ (Utah)
Posts: 2
Posts: 2
Posted:
Whatever you do DON'T hire or consider Desert Edge Prop. Mgt. IMHO!
SidneyP (Florida)
Posts: 302
Posts: 302
Posted:
Donna...where would I find this wealth of information on self management?...I had suggested this to the Board again last year when we ran out of money before each dues payment period. We have only 77 units and I know it can be done. I suggested that we try it for one year (couldn't possibly be worse than we are now) save all that money, to do all they things that have been left undone for the two years we have been on control, get back on our feet. I even said I would do all the work. It was turned down and there was a repeat of the same this year, running out of money before next dues period. What this Board has done, is borrow from the reserve (it looks as if some has been paid back but payments haven't been placed in the account for months)when necessary and use the money coming in early for the nest years Budget, to pay last years bills, therefore we atr always starting out in a financial hole (and this is not counting the $20,000. + in delinquent accounts). Perhaps if I can obtain all the information I can on self management I can convience the HO's (by letter request since most are out of town
Any help would be appreciated by any poster....
Any help would be appreciated by any poster....
DonnaS (Tennessee)
Posts: 5,671
Posts: 5,671
Posted:
Stanley,
One place to start is to go to the HOATALK LIbrary. There are many areas there that refer to "Self Management". It is a daunting process to sort out but if you can get a little help, it should be worth your associations while. Google also will help you find resources.
It sounds like your money situation is on the edge of collapse. Borrowing from the Reserve account should be prohibited as this is not operating cash and that is what they are doing with it.
Stanley, I forgot, are you individual homes or a condo? And do you know how much you are paying to be managed?
As a last resort, many associations are finding that they have to request a "special assessment to make up for the delinquencies and forclosures. There is no way that you can make up a $20,000 in delinquencies without something drastic being changed.
SidneyP (Florida)
Posts: 302
Posts: 302
Posted:
Donna, honey....I am a 71 year old lady and my name is Sidney...every time you answer my post you call me Stanley...Stanley's ok but not so good for a Lady but than again neither is Sidney unless spelled Sydney....LOL....Thank you, I will look up all this information.
We are 77 Tomehome units, 5/6 to a building. I know that borrowing from the Reserve is prohibited but they do it anyway. And what exactly can the HO's do about it? We have no one to turn to. The state certainly doesn't help. When I ask how they were paying the end of the assessment periods bills and were they using Reserve money, I was told NO. I have the Reserve account right in front of me and it clearly states on one line "reimburse reserve w/a deposit of $5,000. When the Association was handed over to us, there was only $2,060. in the reserve. In April, I found out that $10,000. was found somewhere (shifting of MC's) and the Board deposited $8,500. into the Reserve. This left our Reserves at $17,882.64 (April 07) it now stands at $17,900.23,(interest) this clearly shows it has not been paid into. Also as I have stated before, the developer had set our reserves at $902. a month, this Board cut it to $750. (no HO vote) and they still are NOT paying into it.
In an eariler post to have spoken of this President firing our 2nd MC and hiring the one we have now. We were paying $558. a month plus a few added expenses...this new MC (3rd in less than 2 yeas) charges us $850. plus many extras that we did not pay before, such as, mileage, had us get a PO Box, have us pay a phone bill, additional for tax prep (we pay no taxes, a five minute job) had us change banks, one that charges us a fee, the added fees just seem to go on and on. Plus this company has a 90 day payout if we find them unsatisfactory in want to cancel. This President very well knew we could not meet our bills paying much less for a MC and she did this to us, I wouldn't call her actions for the betterment of the HO's/community. What do you think our financies will be this coming year. As of today our accounts receivable is $25,026.,(39HO's) having to the end of this month before late, I'm assuming some will pay. I don't see how we can avoid a "Special Assessment" either.
I'm I being crazy for wanting to try and take over this mess...since the HO's have never been informed about any of this (except my one letter) and have never ask, how can I make them understand I didn't put them in this bind and if a "Special Assessment" is needed it will NOT be my fault. It doesn't seem to me that the D&O insurance should cover this Board...because they knowingly did this w/eyes wide open.
We are 77 Tomehome units, 5/6 to a building. I know that borrowing from the Reserve is prohibited but they do it anyway. And what exactly can the HO's do about it? We have no one to turn to. The state certainly doesn't help. When I ask how they were paying the end of the assessment periods bills and were they using Reserve money, I was told NO. I have the Reserve account right in front of me and it clearly states on one line "reimburse reserve w/a deposit of $5,000. When the Association was handed over to us, there was only $2,060. in the reserve. In April, I found out that $10,000. was found somewhere (shifting of MC's) and the Board deposited $8,500. into the Reserve. This left our Reserves at $17,882.64 (April 07) it now stands at $17,900.23,(interest) this clearly shows it has not been paid into. Also as I have stated before, the developer had set our reserves at $902. a month, this Board cut it to $750. (no HO vote) and they still are NOT paying into it.
In an eariler post to have spoken of this President firing our 2nd MC and hiring the one we have now. We were paying $558. a month plus a few added expenses...this new MC (3rd in less than 2 yeas) charges us $850. plus many extras that we did not pay before, such as, mileage, had us get a PO Box, have us pay a phone bill, additional for tax prep (we pay no taxes, a five minute job) had us change banks, one that charges us a fee, the added fees just seem to go on and on. Plus this company has a 90 day payout if we find them unsatisfactory in want to cancel. This President very well knew we could not meet our bills paying much less for a MC and she did this to us, I wouldn't call her actions for the betterment of the HO's/community. What do you think our financies will be this coming year. As of today our accounts receivable is $25,026.,(39HO's) having to the end of this month before late, I'm assuming some will pay. I don't see how we can avoid a "Special Assessment" either.
I'm I being crazy for wanting to try and take over this mess...since the HO's have never been informed about any of this (except my one letter) and have never ask, how can I make them understand I didn't put them in this bind and if a "Special Assessment" is needed it will NOT be my fault. It doesn't seem to me that the D&O insurance should cover this Board...because they knowingly did this w/eyes wide open.
DonnaS (Tennessee)
Posts: 5,671
Posts: 5,671
Posted:
SIDNEY!!!!!
Please forgive me. It must be time for new glasses. I truely do appologize.
I hope that you are prepaired to have alot of aspirins handy if you are going to take this on as you will need it. I feel some tenacity coming from your posts and you will need that too. You absolutely need to get some other residents involved as you will suffer burn out without help. But, I applaud you for stepping up to do the right thing.
I feel that your Board did not act in fraud but just ignorance and took the easy route. The D&O policy would not cover this IMHO. But it never hurts to find out. So now what do you do? Get some support and get your research done to see if you will still want to take this on. Do you have an attorney handy to ask a few questions of? He might be able to straighten out the money situation. The best of luck and keep us up to date.
JC3
Posts: 290
Posts: 290
Posted:
use the search feature of this forum and search for "what does your management" esp "management co responsibilities, or,".
In that thread you will find lists of items a full service management co performs. Being so small, you may not need all those services, you may need just a few that maybe a bookkeeper with recievables and payables can handle through that office, and maybe a secretarial service.
But there are other threads under that search phrase that will give you a wealth of information.
In that thread you will find lists of items a full service management co performs. Being so small, you may not need all those services, you may need just a few that maybe a bookkeeper with recievables and payables can handle through that office, and maybe a secretarial service.
But there are other threads under that search phrase that will give you a wealth of information.
JoeK1 (Michigan)
Posts: 37
Posts: 37
Posted:
For those of you looking for an “average charge” or “expected charge” for hiring a condo management company, you will find it to be very difficult to find. There are simply too many variables that must be considered, including such things as; number of units, type units, amenities, geographic location, and the specific services provided. Some charge a per unit price while others charge a package price, based on the estimated hours provide. Most condo management companies don’t want to bother with small associations since the fees that they would have to charge are usually too high to be supported by the small number of units.
However, a small condo association of under 30-40 units can expect to pay in the neighborhood of $2,000 - $12,000 per year for part-time, non-resident company management services. Again, these numbers are highly dependent on the services provided and the time involved for the management company.
Generally, small associations do not hire management companies and do it all themselves. But, whether your association consists of 4 units or 400, it is -- or should be conducted as -- a business. The BoD has the responsibility to act reasonably and properly. If it is felt that the required expertise is not present or that if sufficient time can not be devoted to this duty, then the BoD should consider hiring a management company to assist them.
If your BoD does posess the requried skills, time, and energy, then self-management is a very viable option. Shown on www.***********.com under the Contents section is a comprehensive "To-Do" list of all the things that should be considered when self-managing a condo association.
Good Luck
JoeK
However, a small condo association of under 30-40 units can expect to pay in the neighborhood of $2,000 - $12,000 per year for part-time, non-resident company management services. Again, these numbers are highly dependent on the services provided and the time involved for the management company.
Generally, small associations do not hire management companies and do it all themselves. But, whether your association consists of 4 units or 400, it is -- or should be conducted as -- a business. The BoD has the responsibility to act reasonably and properly. If it is felt that the required expertise is not present or that if sufficient time can not be devoted to this duty, then the BoD should consider hiring a management company to assist them.
If your BoD does posess the requried skills, time, and energy, then self-management is a very viable option. Shown on www.***********.com under the Contents section is a comprehensive "To-Do" list of all the things that should be considered when self-managing a condo association.
Good Luck
JoeK
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