Rental Management

Started by EdwardS5 • 5 replies • 915 views

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EdwardS5 (Florida)
Posts: 3

Posted:

I am the President of a Homeowners Association in Central Florida. We have been self managed for about four years now. About 100 of the 280 units in our Town Home Community are rentals. The Association is considering forming a company to manage these rentals. I am seeking any help I can get with this project. Has any association out there formed such a company and if so, what was the procedure?

Ed

PaulM (Pennsylvania)
Posts: 1,347

Posted:

EdwardS5: Do you presently have a Management Company and MC under contract with the Board to 'manage' the Association? It would seem likely an MC could do the job of managing rentals for you. For you to create a 'company' to manage the rentals seems like a lot of red tape and it may not be cost effective for you to do so. You may be getting into an area which will bring you more problems--employees, salaries, benefits, filing state forms, etc.

An MC's fee is normally based on the number of units involved and the responsibilities you want them to assume. Use the search bar on this site for the role of a management company. There are many good posters here who can help.

EdwardS5 (Florida)
Posts: 3

Posted:

We do not have a Management Company presently. The Board of Directors manages our Community at a considerable savings over a Management Company. I know there are other communities out there that have started a Rental Management Company to help supplement the Association's budget. We wish to do the same, but need some advise as how to get started.

Ed

BrianB (California)
Posts: 2,820

Posted:

what exactly are you going to "manage" regarding these rentals? I am a little fuzzy on the intent.

EdwardS5 (Florida)
Posts: 3

Posted:

The intent is to approach the landlords in the complex that have management companies handling their rentals and have them sign up with us for a lesser fee that they are now paying these companies. We would handle renting the units and also oversee that the rental agreements are adhered to, and any other duties that their present management companies are responsible. The money that is over and above the cost of running the company would be used to maintain or lower the maintenance assessment fees of OVPOA.

Ed

BrianB (California)
Posts: 2,820

Posted:

Ah, i see now. Some of the owners want to start up a business. Good luck! With the small pool of clients you are limited too, the costs of insurances, liabilities, bonds, etc., I would estimate your business has a long road before things become good. I have a good friend who is a property manager for a business park, and he swore that because of all the regulations, insurances, state licenses, etc. surrounding the property management aspect of private homes, he would never ever enter that market.

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