Condo management is integral to the smooth and efficient operation of a condo community. Both unit owners and board members must understand what goes into managing a condominium and how a professional company can help.
What is Condo Management?
Condominium association management pertains to the oversight and administration of a condo community’s maintenance, finances, and operations. The condo board is chiefly responsible for managing the association, but many turn to the help of a professional management company.
Professional condo management helps boards by sharing their workload and responsibilities. With a management company, the board can delegate most of its administrative duties while still retaining the final say in decisions.
Condo Association Management vs Condominium Property Management
There is some confusion between association management and property management. Condo association management refers to the maintenance and oversight of condominiums. Meanwhile, property management refers to the oversight of rental properties.
What Does Condo Association Management Include?
Because not all associations have the same exact needs, the services one community chooses to receive may differ from those of another. In general, condominium management services include the following:
1. Fee Collection
A condo management company collects condo fees from unit owners. They can send account statements, monitor payments, and handle delinquent accounts.
2. Financial Management
Management companies offer financial services, including assistance with creating annual budgets, monitoring spending, and overseeing bank accounts. They also prepare monthly financial statements for the board.
Additionally, management teams oversee insurance renewals, collaborate with accountants on tax filings, and manage payments to vendors. They may also support external audits and help with planning reserve studies.
3. Maintenance and Repairs
Condominiums require regular maintenance and occasional repairs. A management company can stay on top of this by scheduling inspections, managing repair requests, and coordinating with vendors.
4. Violation Enforcement
When a unit owner breaks the rules, the condo management company can ensure compliance and enforce the rules. They do this by sending violation notices, coordinating hearings, and implementing penalties.
It is worth noting that Section 42–1903.08 of the DC Condominium Act requires condo associations to provide written notice and an opportunity to be heard before levying any fines for violations.
5. Vendor Coordination
Condo associations rely on vendors for various services. A management company can help with vendor coordination by soliciting bids, comparing proposals, and interviewing potential vendors. They can also negotiate contracts and track their performance.
6. Communication
A condo management company can help maintain clear communication between the board and residents. They can share updates, deliver notices, and send out newsletters. The company can also address homeowner inquiries, provide access to online portals, and manage maintenance requests.
7. Conflict Resolution
Conflicts may occur between residents or with the board. Management companies assist by reviewing complaints, interpreting the governing documents, and recommending solutions. If the situation calls for legal support, they can forward the matter to the association’s attorney.
8. Administrative Duties
There’s a lot of work that goes on behind the scenes. By hiring a management company, board members can get help with meeting preparation and minute-taking. The board can also delegate tasks such as replying to emails, updating association records, and processing work requests.
9. Legal Help
Most HOA management firms either partner with specialized attorneys or maintain their own legal teams. They can handle tasks like filing liens, issuing foreclosure notices, and managing other legal matters. They also guide the board in interpreting, updating, and enforcing governing documents.
How to Select Condo Management Companies
It can be difficult to sift through the many management companies for condos. To select the right one, follow the steps below.
1. Evaluate Needs
The condo board should first identify what services it needs. A smaller building, for instance, might only require help with accounting. Meanwhile, a larger community may require comprehensive support that encompasses maintenance, vendor coordination, and legal compliance.
2. Establish a Budget
Before reaching out to any companies, the board should set a realistic budget. Management fees can vary depending on the property’s size and the scope of work. Setting a budget limit will prevent the board from exceeding its bounds.
3. Look Online
The board should use online tools to research local companies. It must check reviews and look for firms that specialize in condominium management. The goal is to identify companies with experience managing buildings of a similar nature.
4. Ask for Referrals
The board should contact other nearby condo associations. It can ask which companies they use and whether they feel satisfied with their service. A referral inspires more confidence in the company’s skills and reputation compared to anonymous online reviews.
5. Confirm Credentials and Insurance
The board should check that each company has a valid business license and carries the required insurance. It should also inquire about professional certifications, such as CMCA or CAI. These credentials show that the company meets industry standards.
6. Interview Candidates
The next step is to conduct interviews with the top candidates. During the interview, the board should inquire about pricing, contract terms, emergency response procedures, and communication strategies. The interview also helps gauge how well the company understands the unique needs of condo communities.
7. Negotiate Contract
The board must carefully review the proposed contract. This contract should outline the duties, fees, performance expectations, and termination options available. It is also a good idea to consult a lawyer before signing the contract.
8. Track Performance
The process doesn’t end once the condo hires a company. The board should also track the company’s performance, checking that it completes tasks on time and as agreed. Consistency is essential.
If problems arise, the board should address them early on. This will give the company a chance to improve its performance. If the company continues to fail, it may be time to look for a new condo management company.
An Asset to Condominiums
Condo management can be a challenge for condominium communities. For this reason, many boards choose to hire a management company. Although hiring professionals does incur a cost, the benefits are well worth the expense.
TNWLC offers management services to homeowners associations, condominiums, and cooperatives in Washington, DC. Call us today at (202) 483-8282 or contact us online to get started!
