Homeowners’ associations often hire a property management team to help with the day-to-day running of the community, to make sure that policies are implemented properly and to oversee the community assets. When putting together a budget for HOA management, you’ll need to take into account the services that you need and then get quotes from management companies regarding the pricing.
Some of the most popular management services include the following:
Financial and accounting services – These services can range from simple bookkeeping to complex financial management services. These may include overseeing collection actions, balancing the monthly books, helping with yearly budgets plus much more.
Security systems – Many people will judge a homeowners’ association according to the security measures that it has in place. In fact, this is a major concern for people that are looking for a new place to call home so it’s important to provide safe living conditions for everyone in the community. A management team can help with these efforts and find the right security personnel according to your needs. It is a good idea to budget for security provisions since providing a safe place to live will be a part of your community’s reputation management.
Vendor management – Using a property management company for an HOA is extremely useful in terms of finding the right vendors for specific projects. Everything from the bottom up including landscaping to roofing can be managed by the team. You can rest assured that only top-quality, experienced, licensed and insured contractors will be used to get these jobs done without any fear of liability issues.
Day-to-day administrative duties – Since HOA members are volunteers, most don’t have a lot of time handle the seemingly endless administrative duties required. A good HOA management company will have state-of-the-art programs that keep track of everything for you. The information stored on these programs should also be accessible to the HOA executives on demand when needed.
This is just an overview the many services provided by team management companies. When working on a budget, take into account the services that you need the most and then find out how much they will cost.
Many HOAs have had to deal with emergency situations due to an overload of responsibilities falling on the shoulders of their members. When working out a budget, the question shouldn’t be “how can I afford HOA management?” but rather “How can I not afford it?” It’s really hard to imagine what happens when community properties don’t hire a professional team to do the job correctly. Having to handle work orders, projects, delinquencies, rental fees, etc. requires a full-time member that has expertise in all of these different areas.
Budgeting for a management company comes down to the services required and the funding available. The best way to start forming a budget is to make a list of the services most needed and then figuring out how the funding can be made available. Property management offers value for the money – especially when you consider all of the different things that can go wrong without the proper professionals working for you.
City Property Management
4645 E Cotton Gin Loop
Phoenix, AZ 85040