HOA: professionally managed or not? (Scottsdale: rental, condo, transfer)

[kuzer]

We are looking at purchasing a condo in fall and are wondering the advantages or disadvantages to a professionally managed HOA? Our scenario would be part-time residents who rent to other snowbirds. Any info would be appreciated.

[Captain Bill]

Originally Posted by kuzer

We are looking at purchasing a condo in fall and are wondering the advantages or disadvantages to a professionally managed HOA? Our scenario would be part-time residents who rent to other snowbirds. Any info would be appreciated.

Most of the HOA's with condo's are professionally managed. There is a volunteer board of directors that hire the management company and oversee the manager.

If there is no professional manager, then that means the volunteer board of directors is doing everything. In my opinion that is not good because it is too big a job.

The snowbird season is November through April, with many leaving at the end of March. You can almost depend on having your place rented out from December through March if you're in a desirable location.

In Val Vista Lakes the condo's rent for double the normal rent during the season. They're furnished and include local phone calls, cable, (some utilities) HOA clubhouse access, etc. and the rent is in the $2100 ball park.

It's difficult to rent them off season, but sometimes someone needs a place for a month, but I wouldn't count on it.

[Bummer]

Originally Posted by kuzer

We are looking at purchasing a condo in fall and are wondering the advantages or disadvantages to a professionally managed HOA? Our scenario would be part-time residents who rent to other snowbirds. Any info would be appreciated.

Interesting question, Kuzer

Personally, I would avoid any HOA that was not managed by a professional organization. Due to the complicated legal and accounting requirements nowadays, the job is just not suitable for the average lay person.

[blitziedog]

We are from MA and own a condo in Scottsdale. We are in your situation. We use the condo part time ourselves and rent it out during the "season'. The renting has not been a problem. We have a management company that finds the renters. We have owned the place since 2003 and have had it rented at least 3 months every year. One year we happened in to a rental from May until October. Less rent but better than it sitting empty.
The management company has ben a Godsend. Theyare right nearby if/when problems occur, transfer keys, deal with the leases, etc.

As to the HOA. Ours is one of the only ones I could find in Scotsdale NOT managed by a company. I would say, I think the professionals are probably better. This is our first experience with an HOA so we are kind of finding our way. Our monthly fees have gone from $250 in 2003 to $325 last year. Plus, we have had several special assessments.From what I have been able to find out, it seems that maybe the previous board was not doing a good job managing the money. The new board seems to be doing a better job. But I still think it is a very big and complicated job for amateurs.

I worry that, if we ever want to sell, the high fee will be a negative. Ours is higher than all but 2 other developments I checked. The property does look very nice, but not THAT much nicer than some other places I have seen. On the other hand, if we want to keep the property values up and attract renters, we have to keep everything in nice shape.

Thank goodness for the snowbirds. We love our condo and could never afford to have it without the rent money!

[kuzer]

Thank you for the response...great info. I have some questions: who do you use for a management company and what rental amount do you charge? Also does the management co. take care of the cleaning after it has been rented? What part of Scottsdale are you in?