What do you pay for your management association?

Started by KellyH • 5 replies • 2845 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

KellyH (California)
Posts: 3

Posted:

We are a very small HOA (19 townhomes) in Fremont CA. I became the VP three years ago to have a say in things as well as to keep the monthly Association fees from going sky high. We have no ammenities: no pool, no clubhouse, no gate etc. We pay 235$ a month in Association fees. We were paying our management company $500/month to manage. They now have raised the monthly fee to 39.48 per month or 750.12 per year. A 43% increase. This price does not include any copies, stamps, envelopes, letters, etc. We are charged individually for each and every item. We have an excellent representative manager but they nickel and dime us for every little thing.

I have been told that it would be impossible for us to find a better management company. That no management company wants a small community such as ours. So we have to settle for this 43% increase. Is this true?

Thank you for your input.

Kelly Hanna
VP
Olazaba HOA

DellaT (Washington)
Posts: 1

Posted:

Hi Kelly,

I am the President of a seventeen unit HOA in the Seattle area. We also have no ammenites. Our monthly Homeowner dues vary by square footage. I have one of the smallest units and pay $238.00 per month. A few of the larger units pay up to $380. per month. We pay our management company $500.00 per month. We did a lot of shopping around because a lot of management companies did not want to handle a property as small as ours and wanted to charge anywhere from $650. to $800. per month (and this was three years ago). Our property manager did not raise our rates this year in lieu of attending fewer board meetings - one less per quarter, but being available to us by phone and email. I know there are some management companies that will just do bookkeeping for a lot less, but then that leaves an awful lot of work for the board. I have been on the board as a self managed board and on the board with a property manager and I would never serve without a manager. I say keep shopping around and maybe you can make a deal. It's tough when your small. Good luck!

RussR (Colorado)
Posts: 5

Posted:

We have 42 units in 12 buildings and we are self managed. Our dues are $175 per month which includes CATV, Trash, and a paint reserve. These dues cover repairs, insurance, and landscaping maintenance. Try "self managed". My guess is that it would take the officers approx 2-3 hours a week of their time.

CaryL (Arizona)
Posts: 19

Posted:

Well, in any case, you still have to have a Board. We are a 38 unit HOA and have always been self managed. Our quarterly dues are $280.00, including insurance. This is far less than what a Management Company would charge. If you do go self managed, just be aware that you need to cultivate people that have some experience and are willing to serve your community, and not their own interests. If you do that, you should have smooth sailing.

KathleenF (Illinois)
Posts: 19

Posted:

We have an 18-unit building, with no special amenities. For $500/month--which costs me about $25 a month--we get: monthly and year-to-date financial reports, bill payment, about 6 management reports per year (keeping the ball rolling on bids, contracts, maintenance, repair, tax issues, etc), attendance at 4 or more board meetings (but we take our own minutes), distribution of all minutes and notice to shareholders, forwarding all shareholder correspondence to board, supervision of repairmen, bid shopping, notices to shareholders about rules violations, collection of late assessments (to a point), etc.

They do not charge extra for office supplies and copying. We pay for the annual audit separately. They do not make any repairs.

$500 month is a good price for what we get. Before we had a management company, I was board president and, at points, de facto treasurer or secretary. There's a lot more work than you might think. Financial recordkeeping is the most time consuming, but bid shopping and supervsion of repairs can be quite a burden. As president, I was on the roof more often than I care for! Repair schedules are constantly being changed, and residents have questions and comments about what's up. It all adds up.

Having a management company frees the board to do its core jobs of policy-setting, financial and maintenace planning, rules enforcement.

I would push your management company to give you a flat price and stop this a la carte business.

PS: I'm near Chicago, so I would have thought our prices were relatively high. Apparently not.

LindaJ (California)
Posts: 21

Posted:

Our townhouse association of 120+ units was recently turned over by the developer to the homeowners. We have researched hiring a management company and have received estimates between $20 to $30 per month per unit. We are fortunate to have a homeowner who is our Board treasurer who collects our dues and pays the bills, so we decided that the first year we would self-manage. During the first few months, the Board is reviewing additional bids for maintaining the property (e.g., lawn mowing, fertilizing, tree and shrub trimming, snow removal, underground sprinkler repair, etc.) as well as reviewing bids for master policy insurance. We are fortunate to have volunteer Board members who are knowledgeable in building construction, repairs and maintenance. We also designed a form for homeowners to use for requesting information, submitting ideas, reporting problems or violations to convenants. Only emergencies can be called in to a board member - everything else must be submitted in writing and signed by the homeowner. Even with a management company, you need to have an active board of directors. We still aren't convinced that a management company is needed at this time, but we may have to look further into this option with more homeowners going south in the winter and a minimum of homeowners willing to be on the board in the future. But for Minnesota, the rate we are seeing is $20-$30/month per unit.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here