Condo and homeowner association management business (fees, collection, lawyer, financial)

[Magnolia Bloom]

I changed careers just over a year ago and became a community association manager. I manage homeowner and condominium associations.

Many reasons factored into my decision, the straw being that I was the pres of my HOA and was frustrated by the poor service that we received from our well-paid property managers. I felt that I could do it better and make a decent living from doing so.

I am now ready to start my own company and would like input from thsoe who live in HOAs as to what bothers you the most about your property manager. What can they do better? I have my own long list, but would like to hear from others.

Please, no "HOAs stink" comments. Believe it or not, many chose to live in HOAs BC they want the restrictions found in governing documents. I am interested in learning what folks think makes for a good association manager.

Thanks all!

[bmspcb]

I would like to know what is needed to be able to start my own Rental Business....

[brightdoglover]

Great topic.
I lived in a condo in a 9-unit building. We couldn't get professional management because the building was too small to be of interest. We did get a guy who was much more of a handyman than a manager.
Let's see... One owner (owned 1/4 of the building) skipped town and went back to Pakistan. His unit fees weren't being paid. As a trustee, I thought we should go to the lawyer and get going- our own fees were going way up because of this, plus the money had been mis-managed all along. The other two trustees were a married couple who had done some kind of brainwash workshop thing, and they didn't want to involve a lawyer, bad vibes etc.
The drunken owner on the first floor kept going up on the roof, which was some kind of rubber stuff and not suitable for people, health and destruction being the issue.
People were squatting in the empty units.

Would a professional manager handle these things? Go to the legal connection to get back fees (or, as happened years later, the "empty" condos went into foreclosure and by then the laws had changed to the condo association could recoup some of the loss).
I always thought living in a condo would mean writing a check each month and not having to worry about stuff. Then I found that I'd bought property with several other *strangers* and that no one was minding the store. Is that something a professional manager would do? I ended up buying a free-standing house, essentially to get away from other people being mixed into my home situation. But I'd like to be able to consider a condo someday, and try not to be too burned by Lee Street, Cambridge, 1989-1994.
(Oh, and Cambridge had an amazingly messed-up and byzantine rent control system until 1994, and I was in trouble with that, because I lived in my own condo instead of renting it out at rent control prices, which then was, I think, $308).

[brightdoglover]

My sad condo story is in Massachusetts. I sold the condo in 1994 for next to nothing to a "friend" (who I think bought me a cup of coffee and vanished into a cult of some kind) so I no longer own the condo.
I believe the law changed shortly thereafter to put HOAs in line when a condo is foreclosed. This wasn't true during the time I owned there. Also, I believe the absentee-owned condos went into some sort of sale where the HOA owns the condo in some form. I know it sold for very little (saw it in the newspaper).
If I ever bought a condo again, I'd make sure there was professional management and would give the financial docs to a real estate lawyer for an opinion.

[Pappy&Me]

Good luck with the economy the way it is now I don't see many having money for fees much longer .

Ours closed up because of fees and of course ' arguments ' .

[Itz]

As a member of the HOA board - We switched companies and this new company is fabulous... this is what they do... I would HIGHLY recommend it as it will save headaches for you, the board and the members of the association

KNOW THE ASSOCIATION!!!!!! - The bylaws, the regs, the design guidelines... Its amazing HOW mahny management companies don't know this information.
KNOW THE LAWS!!! - This is very important when congress is passing new laws that will affect the association.... you will need to advise the board about.
BE AWARE OF DELEQUENCIES and get involved!!! Our management company has taken a very active role in collecting dues and we have decreased our legal fees by over 60% and decreased delinquecies by over 30% in 6 months... This saves US - the HOA and members a TON of money - something we ALL like to hear.
Design a user friendly website that users can sign up for direct withdrawl - eliminate fees where possible.
Be aware of other associations and the contractors they are using - become involved and find GOOD ones to use in your communities - Management companies usually use a pool to pull from.

for this business - you get paid to MANAGE a community... I've been so disgusted with management companies because all they do is send out the "pay your dues" - turn you over to collection and tell the board they are above budget and they need to raise dues - when all they really need to do is be more aggressive in collecting dues - as in a letter to the owner...

Good luck! With PERSONALIZATION you can offer your communities - I gaurantee you will succeed..

[smokingGun]

One of the major gripes i've heard with HOA managers is that they fail to get competitive bids for routine services and just dole them out to ppl they have close ties with (and some even get kickbacks!) Another is failing to do a proper reserve study to prepare for costly structural work like re-roofs, re-pipings, pool repairs, etc, especially on aging buildings.

[W James III]

Great thread

You say you manage multiple properties? How is that going and what have you discovered?