Management of HOA

Started by EdieL • 10 replies • 1262 views

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EdieL (Virginia)
Posts: 86

Posted:

Our BOD is considering hiring a management Co.
Any comments on cost of management Companies.
I have heard up to or maybe more $80,000.00 a year.
Edie

RogerB (Colorado)
Posts: 5,067

Posted:

Edie, it all depends on the number of units, the services provided, and where you live. For a very small HOA with no amenities it could be as low as $4,000. For a condo COA or townhome HOA with lots of services and amenities it could be greater than $80,000 for a very large number of owners.

RandallB1 (Michigan)
Posts: 2

Posted:

For our 42-unit condo in Michigan, our management fees is $8600 annually. Worth every penny, too. Besides handling all of the basic matters, a good management firm also provides continuity as boards change from year to year.

IreneC (North Carolina)
Posts: 111

Posted:

We pay 13K annually for a 60 unit complex. It is worth it!

AnnaD2 (Florida)
Posts: 960

Posted:

We have 46 units. Our management company charges $14.75 per door. So we pay $678.50 per month or $8142.00 per year. The bad management company we just got rid of charged us $8100.00 per year. So you can see, the fees are fairly close.

I absolutely would recommend hiring a management company.

JaneK (California)
Posts: 175

Posted:

We pay over $13,000/yr for management, 50 units. NOT worth it. Management doesn't know CA laws, how to be polite, has engaged in conflicts of interest, selective enforcement, and on and on. We are charged for every tiny extra, mailings, stamps, meeting time. If you do go with a management company be very careful who you choose. I would avoid it.
Jane

EdieL (Virginia)
Posts: 86

Posted:

Thanks for the imput. Our HOA is 245 lots with 3 waterfront parks,
boat slips, launching ramps, tennis and basketball courts, miles of
3 rail vinyl estate fencing. We are also responsible for all road edge
mowings and 2 landscaped entrances.
Edie

AnnaD2 (Florida)
Posts: 960

Posted:

...and you're already managing all of that by yourselves??? Sounds really nice! Just who is wondering if you should hire a management company? Also, why?

EdieL (Virginia)
Posts: 86

Posted:

This year the BOD could not get any candidates for 4 board seats
opened. Letter was sent to all members stating that if no candidates
come forward, they may have to resort to turning over to a management
Co. at an increase in dues. Our CCR's allow only $6,000.00 a year for
directors compensation or it can be used for a management firm. I don't
think $6000.00 would cut it!! Dues can not be raised unless majority
agrees. Even with a management firm, I believe the HOA still needs a sitting Board.
Edie

EllenS1 (Florida)
Posts: 1,148

Posted:

Your CCRs must be very different from mine here in Florida. Ours do not allow compensation for Directors (just reimbursing them fot our-of-pocket expenses) and if no board is elected the courts will name an entity or person to run the hoa.

DonaldM3 (South Carolina)
Posts: 132

Posted:

I've been a member of an HOA in three different states now (PA, MD & SC) and in none of them can board members be compensated for their HOA community efforts. That could easily become a conflict of interest for any of them!

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