If you run an HOA or own a lot of property, you may be considering hiring a property management company. While it is possible to manage the property on your own, a skilled management company is able to take a lot of work off your plate, giving you more free time to spend with your family. If you would like to know more about property management, then keep reading.
What Does a Property Management Company Do?
A property management company handles all the legwork of managing property, such as all day to day happenings within the community, condominiums, office complexes, and etc. They tend to handle three major parts of the property: owner management, common area maintenance and full accounting services.
Naturally, employees from the property management company do not fix issues themselves, but they are responsible for hiring people who can provide maintenance and cleaning of common areas.
The property management company, however, also must handle the finances to ensure there is enough money to keep the property well maintained. They will need to create a reserve fund for big or unexpected expenses as well. They will collect the money from your residents on your behalf, so you do not have to get your hands dirty if someone does not want to pay.
Who Pays for The Property Management Company?
The people in the community pay for the property management company. Typically, if someone lives in a neighborhood with an HOA, then they must pay dues. These are used to keep the neighborhood and common areas in good condition.
The cost of the fee depends on many factors, but on average, it costs a management company about $10 to $20 per unit each month. The cost also depends on how many services you receive. If you just need help every once and a while for an audit, then you will pay a lot less than someone who needs full-service HOA management.
Depending on the HOA, there may also be special dues. These arise when something expensive and unexpected arises, such as replacing the community pool, and there is not enough money in the reserves. Many HOAs, however, try to include these costs into the total monthly fee to make it easier for residents to budget.
How Does Property Management Benefit an HOA?
There are many benefits to choosing a property management company for your HOA. First, they have the skills and experience needed to manage a property. HOA board members consist of people from the neighborhood, so they may not have much experience in property management. With help from a property management company, however, the board can thrive.
A property management company also takes stress off the board. Without a dedicated property management company, members of the board or other elected members of the community may have to deal with scheduling maintenance and repairs in their free time, and they may not get paid for it. Plus, if you have to go around collecting dues from your neighbors, it can make things uncomfortable.
One last benefit can impact the homeowners too. With a property management team, repairs and upgrades can all be scheduled at once. This means if lots of units need new flooring or new roofs, the property management team may be able to get a discount as a reward for bringing in so many customers at once.
A good property management company is able to help your community thrive. They will take care of all the financial and maintenance tasks so that you can just enjoy your investment. If you would like to know more or if you want a quote on services, then contact us at Southern Property Management Group.