It can be quite a challenge to operate a condo or an HOA. It is an exercise in balancing the luck of the owners while ensuring the long-term future of the community. This great task is more than most board members can do on their own. Property management companies can help everyone in the Community while improving the value of the property. Property management companies take care of day-to-day tasks. But they also help improve communication and transparency within a condo or HOA. Simply put, property management companies are helping to improve things for people and property. These are all legitimate reasons to establish a relationship with a property management company – but before you welcome a new business into your community, you both need to sign a property management contract. Do not immediately exclude a property manager because it appears that they charge higher fees. Property managers who charge lower upfront fees may charge more for “additional tasks” such as filling positions, paying bills, maintenance problems and evacuation procedures.
You should read the administrative agreement very carefully to determine which services are actually included in the administrative costs and which services are considered extra and require additional payments. An asset management contract is a formal agreement. It is legally binding and clearly presents the commitments and expectations of each party. Property management agreements include a liability clause that protects the trustee from claims, fees, debts, claims and lawsuits (including reasonable legal fees related to the management of the property described) and any liability for damages suffered on or above the property suffered by an employee, tenant or guest. Some landowners or board members choose a cost-only management company. We don`t recommend it. Property managers who charge lower upfront fees may cost more in the long run because they offer fewer standard services. Look for a company that provides the services you need at a reasonable price.