A Guide to Condominium Management
Generally, management fees are in top of highest expenses in the annual budget of condominium corporation. Following are the questions need to be settled to ensure that the entire complex has a smooth operation and is going in the right direction.
Number 1. Who is setting the management fees – much like in every industry, condominium management is a very competitive field. Management companies are setting fees which is done often on “per door” or “per room” basis. It is essential on the other hand to have a complete understanding of what is included in the price quoted and also, what is not included. As for the fees that are included, this is where clients have to be very vigilant and cautious during research phase and some of the most significant considerations are company’s experience, low monthly fee upfront but with remarkably high charges the contract is signed and so forth.
Number 2. Where will we notice the advantages of management fees – you’ll see the advantages of hiring ethical and responsible professionals in property values. Having an accurate, legislated and thorough record keeping, attention to regular maintenance as well as replacement issues, enforcing bylaws and the appropriate reserve fund is sought after by most of the savvy customers these days who usually hire professionals to review affairs of management in great detail prior to buying the unit.
Number 3. When to be concerned of the fees – well without a doubt, you should be alarmed of below the average fees and higher than normal rates, which both have to be justified. A general rule here is, give the highest and lowest in which all factors meet equal, which happens to be the simplest method as well. When doing so, make sure that you closely look in comparing critical practices, terms and conditions as well as the management’s qualifications such as promptness, communication, consistency of work and experience in industry.
Number 4. Why should do research for varieties of fees – more often than not, good companies are offering flexible service contracts. Say for example that you have a 12-unit property, then you may need some help on consulting partial or basis management services. At end of the scale, 400-unit high rise with special assessments, multiple insurance claims and older bylaws might opt for comprehensive full service and all inclusive contract. Check the services proposed for quoted price and review your specific needs and remember not to pay for what you don’t need. Also on the quotation, be sure that it has everything that you’re looking for.
Remember that condominium management is not a creative process and there are critical as well as set tasks that have to be met by managers.