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| IHG Insurance (National Insurance Provider) |
| Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability. |
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NancyM2
(California)
Posts:150
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| 08/03/2006 9:15 AM |
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Is there a Data-base available for a comparison on Mgmt co costs. I realize we are comparing apples and oranges ~ because of all the amenities involved. each HOA differs greatly. Also the number of owners involved would be a factor. Maintenance on condo's differ greatly depending on the services required. What I am interisted in is single family homes in a HOA with no amenities (just green belt) ~ this might be a question for Roger, since he is familiar with Mgmt co costs and priceing.
When I was on the board we put out RFQ's to 6 Mgmt co's ~ They came back ranging from 4K a month to 6.5K a month (pretty close) all bills had extras charges separately, but were very close with what they listed as possible extras.
Is their a reliable source for this information?
NancyM2 |
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RogerB
(Colorado)
Posts:3726
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| 08/03/2006 6:21 PM |
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Nancy,
The management company charges can be considered in three categories:
The cost of overhead of the MC,
The cost to the MC to provide services requested by the HOA, and
The MC's desired profit margin.
The key variable when we offer a price bid for managing an HOA is the time involved to provide the services the HOA wants. Wait a minute, the real key is whether we feel it will be a win-win situation and want to consider managing the HOA!
The key parameters to estimate the time involved are the services requested, the size of the HOA, and travel time. Some costs such as time involved to attend meetings, prepare minutes, and prepare monthly financial reports are fairly independent of size. While other costs (time) vary with key parameters like the number of owners and the frequency of payments (monthly, quarterly, or yearly).
For a nearby HOA with 100 single family homes with a greenbelt, weekly covenant inspection/enforcement, quarterly statements & collection, and 4 Board meetings plus 1 Members' meeting per year our basic cost is in the range of $650/month. For each additional home add approximately $1/month. For such an HOA we can save the HOA more than our total cost due to:
guaranteed lower management costs than any other MC,
legal costs become minimal to none,
insurance guideance decreases premium costs,
investment guidance increases yield,
tax preparation assistance is provided at no cost, and
SIGNIFICANT reduction of costs for contractors. |
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Roger Borcherding
Official HOATalk.com Sponsor
DARCO Property Management (Colorado)
(303) 925-0150 
*See legal notice below (end of page) or go to www.hoatalk.com/legal |
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NancyM2
(California)
Posts:150
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| 08/03/2006 8:10 PM |
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Thanks for the info Roger ~ $650 for 100 owner HOA ~ WOW that sounds reasonable, even if you add 1.00 an owner on that ($475.) We do have a general meetings once a month. our dues are billed and paid monthly. They take care of all the other things you mentioned. As far as the green belt we have grounds keepers to take care of the greenbelt area (80 plus acres) our streets are owned by the city. our present Mgmt co charges $9,250.00 a month plus extras, bringing it to 10K a month. (sometimes over that)our previous Mgmt co charged $4,000 a month (base) ~ with 1,000 to 2,000 a month for extras.
I like all the other services you provide, listed below ~ Maybe we could transplant you folks to Calif. (we have nice weather here)
Nanc |
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NancyM2
(California)
Posts:150
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| 08/03/2006 8:22 PM |
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Roger ~ I do have another question and I hate to start another posting ~ I don't want to be a pest with all my questions.
Question is;
If our HOA levied an assessment for the purpose of paying off attorneys costs (the class suit) and all these attorneys were paid off. and say their was monies left over from this assessment ~ what are they required to do with the surplus monies.??
Figured you might know this one. (thanks)
Nanc |
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RogerB
(Colorado)
Posts:3726
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| 08/04/2006 7:09 AM |
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Nancy, I would guess this could depend on the wording in the special assessment. The HOA may be able to keep this in their reserve account or may have to refund the surplus. If the wording is determined to require a refund to each owner then perhaps you may be able to credit it to their account and apply it against a future regular assessment.
Perhaps someone else can provide some insight on this. |
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Roger Borcherding
Official HOATalk.com Sponsor
DARCO Property Management (Colorado)
(303) 925-0150
*See legal notice below (end of page) or go to www.hoatalk.com/legal |
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MikeC3
(Indiana)
Posts:1
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| 08/09/2006 6:57 PM |
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Interesting that you put in " legal costs become minimal to none, " over how much time? Because if you are just taking over that community, they may even see a rise in the cost. Especially if you have homeowners who refuse to pay.
I am the president of my association, its only 88 homes, our cost for a MC is $264/month. bi-weekly covenant inspection/enforcements, monthly statements and monthly board meetings.
Mike |
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RogerB
(Colorado)
Posts:3726
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| 08/10/2006 11:46 AM |
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Posted By MikeC3 on 08/09/2006 6:57 PM
Interesting that you put in " legal costs become minimal to none, " over how much time? Because if you are just taking over that community, they may even see a rise in the cost. Especially if you have homeowners who refuse to pay.
Mike
Mike, over the past 5 years the cost has been a total of $198, one HOA, one time. Read the right side of this screen for info on our record on payments.
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Roger Borcherding
Official HOATalk.com Sponsor
DARCO Property Management (Colorado)
(303) 925-0150
*See legal notice below (end of page) or go to www.hoatalk.com/legal |
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| You are not authorized to post a reply. |
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