Self-Managed Home Owner Associations: Pros and Cons
Many smaller home owner associations choose to self-manage. This is all possible when you have the right tools and understand the correct way to go about using them. The benefit of self-managing is that the home owners will have total and complete control of what is happening within the building. The major negative to self-managing is that inevitably one or two of the owners end up doing 90% of the work and without pay. Before the internet existed, managers kept ledger books, excel sheets, paper files, and communication was shoddy at best. With today’s modern tools managing your investments or Home Owner Association is easier than ever. It is common nowadays for owners to select their level of service without a “one size fits all” mentality. For example, only hiring for accounting services. When it comes time to sell a condo, the required documents take longer to fill out, financials, meeting minutes, condo questionnaires, insurance policies, and administrative tasks can slow down the sale and turn-off potential buyers.
Managing a property can easily begin to take the time of a part-time job and eat into other obligations. And, if this person leaves the building it leaves the building in disarray and often without a system of records in place. For investors, having a team of people that you can rely on works up to a certain sized portfolio, but once you reach around 80 units under management it may make a lot of sense to hire someone to assist with all the moving parts that managing properties entails. Hiring a professional has the benefits of freeing up even more time and gives access to further safety and cost benefits through scale.
When you look at the cost of a professional and divide up the cost evenly amongst owners it may make the most sense to hire a professional. Then, the important issue at hand is to maintain communication with the manager at the minimum on a monthly basis. Pro Realty Team’s system is probably the best of all the Brooklyn property management companies. They offer services and features that other companies simply live without such as FREE ach payments, digital lease signing, online credit and background checks, 24×7 live answering, and much more. For a customized management quote from one of Brooklyn’s Best property management companies, call a Pro Realty Manager at 1.888.230.1578.