Best Tips To Save Money By Hiring A Professional Property Management Company
If you are thinking about saving money on property management via self-management, you may want to think again. A professional property management company, although associated with costs, can save your neighborhood money.
Self-management does not mean saving money
Many neighborhood and condominium associations mistakenly think they will save money through self-management. Instead of allocating funds towards professional property management services, they attempt to coordinate the administrative, financial, and physical aspects of property management in a piecemeal fashion.
In this scenario, the Board manages somewhat indiscriminately. While they may follow state and local guidelines (as well as neighborhood association bylaws) the property can lose out on high-quality services at industry appropriate prices.
It may seem that the association can avoid paying management fees through self-management but may ultimately pay higher costs or spend unnecessarily due to a lack of proper guidance or experience that a management company can provide.
Often, the savings provided by working with a management company will far exceed the fees for the management services.
Through proven industry experience and know-how, working with a property management company can save you money.
Management companies have a network
By working with a local condominium or HOA management company, you get their support in employing licensed professionals. This means high-quality work for fair prices.
Management companies have long standing relationships with various vendors. Property management companies have connections with the right contractors for each job and do not need to do extensive research to find them.
By working with a management company, you join their network. This means you’ll reap the benefits of their longstanding relationships, low prices, and high-quality services.
You’ll save money on projects big and small.
Low-cost service contracts
Management companies typically work with numerous condominiums and neighborhoods in the area. This means they know the right local vendors to service your property. This also means they can help you obtain fair priced service contracts.
They have extensive knowledge of appropriate market prices. This will help your neighborhood to negotiate contracts with vendors at low costs.
Consider items like pools, lawn care, and irrigation. These ongoing services can be provided with established contracts by licensed contractors for fair prices when working with a property management company.
Although a property management company is not licensed to give legal advice, they are licensed to offer input based on their experience. With years of industry expertise, they have a strong understanding of local and state laws and can offer guidance or direction.
This will save your HOA money by avoiding to pay regular lawyers fees for simple and straightforward guidance.
Similarly, property management professionals have CAM licenses and can offer guidance based on their long term property management experience.
Eliminate Association website costs
A local property management company typically offers many services. Aside from helping to gain vendor contracts or offering legal support, they also provide a variety of technology and administrative tools.
Your HOA can save money by benefiting from their existing infrastructure. Your association will have lower IT costs to run and host a website.
Many property management companies provide certain softwares at no additional costs. This may include important resident and homeowner tools like collections, violations, work orders, visitor tracking, and more.
Human Resources and Other Risks
Many self managed boards forget that in order to hire vendors or employees like repair services, they must be insured and licensed. This includes applying for certain certifications, submitting documents, and other tedious tasks.
Hiring and employing individuals also means protection and awareness of EEOC laws, workers compensation insurance, unemployment, legal settlements, and more. Labor laws must be taken seriously and followed accurately.
Self-managed boards often find themselves ill experienced and unprepared to take on such tasks. Plus, given the serious nature and potential repercussions of these steps, it is almost certain that mistakes will lead to huge financial loss.
A property management company has these procedures established. No need to recreate the wheel, waste time, or face potential catastrophe for a misstep. Avoid these potential pitfalls by working with your local trusted property management company.
Save time and money by working with a professional property management company.
Save money with a property management company for your HOA. Choose a trusted, local business with years of experience and a strong network.
The fees associated with a property management firm will ultimately prove to be a savings and investment. Consider some of the costs of NOT hiring a property management company!
Contact us today to learn about saving your HOA money with our services.