Management Company

Every good-quality condominium complex or association depends on a competent property management company to keep the place well-maintained.  For new buyers or long-time owners of a condominium, it is vitally important to know how good – or bad – your condominium management company actually is.

Here are a few things to consider:

What’s it going to cost to hire them?  Property managers charge a monthly fee to watch and maintain condo property.  Those fees can have a wide range.  So shop around before selecting a new company and get them to pin down what they’re gonna cost you.

How are they staffed?  Both a prospective owner and the long-time resident of a complex need to know if the condominium management company has their own maintenance crew or works with outside contractors.   This obviously relates to cost.  So again, find out what the company can do to keep labor costs under control.

How much independent financial control do they have over the monies they collect?Find out what the maximum amount is that the company can spend without contacting a board member or unit owner. A good rule of thumb is that the complex

don’t let the management company have easy access to your money.

should set a low amount (like $150.00) as an amount that the company can spend without board or owner approval. This generally lowers the possibility that the association or complex will have its money taken from it without its knowledge or consent. It is also a good practice to request invoices and/or receipts for all expense items.

What system do they use to handle your money?  Every management company will have provisions in their contract with the condominium association that will explain how they handle the money they collect from unit owners.  It might sound like a boring, dry, legally intense thing to do, but check out that contract and learn how they are going to  handle your money.  This teaches the new owner and the long-time owner the same thing: your management company will state in writing how your money is handled, accounted for, and – very importantly – insured.

What is their reputation?  Finally, it also important to know whether the management company has a good reputation or not.

Find out if the management company that runs the condo complex has a good reputation or not

Reputation-related questions include how many lawsuits have they been involved in, how long have they been in business, how many properties do they work for, how many employees do they staff, and how easy are they to contact when problems arise?

With this background as a start, condo buyers and long-time owners should be well on their way to tackling the challenges of working with condominium property management companies.

REMEMBER, THE MANAGEMENT TEAM CONSISTS LAWYERS, INSURANCE AGENTS AND ACCOUNTANTS, TOO.  MAKE SURE THEY ARE GOOD. BASICALLY, IF THE MANAGEMENT COMPANY IS REPUTABLE, SO WILL BE THE OTHER PROFESSIONALS.

Questions? Contact Allthingscondohio.com!

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