by Dan Tiernan, COO, Campbell Property Management
Many associations believe that by managing their properties in-house, they are saving money because they are not paying any fees to a management company. This may be true; it all depends on who you hire. Hiring the RIGHT professional South Florida property management company may save money that far exceeds the management fees you pay.
Here are some possibilities:
1. Project Savings – The best property management companies that have been around for generations have strong relationships with contractors that help ensure that the right work is being done for a fair price. Project savings can range from $10,000 on a $100,000 project or up to or more than $100,000 on a $1 million project.
2. Service Contracts – Can you take advantage of bulk purchasing, especially for service contracts like copier machines? The right property management company can get your association bulk purchasing.
3. Bank Fees – Some property management companies have preferred relationships with banks, allowing them to eliminate fees for coupons, lockbox services and other fees.
4. Reduced Labor Through Improved Technology – Do you have access to the skills and resources necessary to implement the latest and greatest technology in your communities? Lockboxes for collecting owner payments, online accounts payable and invoice payments, automated work orders, automated violation letters and standard/automated financial reporting are just a few of the technological advancements a property management company can bring to your association.
5. Energy Savings – Property management companies can save your association money by making you aware of advanced technologies, including: geothermal heating of pools, energy efficient lighting, etc.
6. Reduced Legal Fees – Having a management company that provides direction on basic, everyday situations will allow the association to reach its fullest potential. This is not practicing law without a license, rather it is providing guidance based on practical experience and knowledge of general CAM, or Community Association Management information.
7. Property Maintenance Contracts – Some property management companies have a long list of relationships and knowledge for market price awareness that can get your association services for maintaining pools, lawns, trees, irrigation system, etc., all for an affordable and fair price.
8. Reduced Information Technology Expenses – Some property management companies have made investments in technology so that your community may have access to the tools needed to incorporate a computer system into your association, instead of paying an employee to do the work. Tasks of the computer system may include: collections, violations, work orders, guest/visitor tracking, community websites, etc.
9. Hiring and Managing People – If an association’s board member(s) is/are hiring, supervising, firing personnel, this takes a tremendous amount of time. If the directors happen to be very good at this and are willing to do it for free, the monetary cost is not obvious, but it is still there. Hiring a management company proficient in sourcing, evaluating, on-boarding and developing personnel can dramatically reduce the cost to the board.
10. Cost of Risk Related to Human Resources and Legal Issues– Hiring a professional South Florida property management company will allow your association a guaranteed professional handling of any of the listed legal issues: employee reviews, hiring, termination, workers comp claims, labor related lawsuits including sexual harassment, EEOC claims, unemployment claims, settlement costs, etc.
Want to learn how your association should choose a professional property management company? Check out this article here.
Has your community recently hired a professional property management company? Has your association’s funds significantly increased since hiring a property management company? We want to know in the comment section below.