If the board of directors is feeling a bit overwhelmed, then you may start to discuss hiring a property management company. Making the decision to hire a property manager can be difficult. Are they worth it? Are they good? What will they do? We’ve put together an overview of what property managers do, the approximate cost, and the advantages and disadvantages of property managers.

What do Property Managers Do?

HOA property management companies do pretty much everything! They deal directly with the residents in the HOA, they can handle complaints, and when necessary go after tenants who don’t pay fees or need to be evicted.             

Since they deal with residents in the community, they can be responsible for creating and sending out a community newsletter and communicating any changes, events, or repairs that might be going on.

As they’re an independent company, they employ all staff instead of the HOA. So the property management company manages all concierges, and staff, setting their salaries, and firing them if necessary. 

A property manager will take care of all maintenance and repair problems, including emergency repairs. They’re also responsible for filing taxes for the homeowners association and providing the documents to file the taxes. A property manager can also create monthly income and expenditure reports to help create the yearly budget, and keep track of the association’s finances and insurance.

How Much Do Property Managers Cost?

This depends on several factors, including the size of the community, and the type of property. The property’s condition is important too, if the property is new, or it’s been recently renovated then there should be fewer maintenance issues. Then, you have the location, if the property is in a very expensive area, this may push up a property management company’s fees. The last factor is the extent of the property manager’s services, there’s a big difference if they’re collecting fees or running every aspect of the association.

Having said that, property management companies’ fees are usually between $10 and $20 per door per month.

Why You Should Not Hire a Property Manager

1. It can be expensive to hire a manager, you can see the figures above, it’s a lot of money to spend on something you’re doing yourself.
2. Also, the board of directors will have less control over what is going on in your community. While a property management company can be great if the relationship sours then managing the community together gets very difficult.

Why You Should Hire a Property Manager

1. If you spend the money on a property management company the board won’t have to be so bogged down by doing every aspect of managing a community. The board will have more time to focus on the important aspects, while the property manager does the rest.
2. If you have a clear idea of what you want, and take the time to research the best management companies you can choose a manager who the board gets on well with and who shares your community’s values.
3. It’s their job to keep up with State laws. At the start of this year, Florida approved a whole host of new laws around HOA management and transparency, a property management company makes this transition smooth. You’ll never be at risk of violating state rules with a good property management company.

How Software Can Help

Whether you decide that a manager is right for your community, software always is. It can help the board and manager efficiently manage, organize and communicate with residents.

You save time by sending emails and calls in one place and you save money by only needing one platform to communicate with residents, manage maintenance requests, and dues, post all your documents, and events, as well as have a website.

So Should You Hire a Property Manager?

While property managers are expensive, a good property management company is priceless. They can make life in a community much better, and managing one so much easier and more enjoyable, since they can take care of almost everything in your association. However, to enjoy the benefits that come with having a manager, you need to ensure that your community association hires the right property manager.