In these challenging economic times, Condominium and Homeowner Associations are looking for ways to reduce expenses. That’s a great thing to do but……a penny saved today that cost an extra dollar tomorrow creates a lot of unhappiness.
In my workshops with Condominium and Homeowner Associations, I often educate Board Members of Condominium and Homeowners’ Associations about the difference between value and immediate cost-savings as these terms relate to property management issues.
In the property management industry, value takes into account not only the immediate cost of a product or service but also prevention and risk. Proper risk management and prevention save money. For example, construction management services provided by a good property management company will include monitoring scope of work, insurance requirements and adherence to lien releases.
A good property management company proactively plans, understands and acts as an extended arm/partner with Board of Director’s in order to bring not only savings but value to their clients. A competent property management company provides continuity, consistency of policies, advises the board of directors, stays abreast of current trends, understands how to put safeguards in place and helps provide a strategic direction. In order to reduce operational costs, a property management company must have the expertise and experience to determine prevailing market rates without compromising quality and consistency of delivery.
Regulatory, legal and economic environments in which condominium and homeowner associations operate are becoming increasingly complex. Even seasoned professionals in the property management industry require continuing education just to keep abreast. The decision by a condominium or homeowner association to cut costs by going it alone without a property management company is usually a costly mistake.
Not all property management companies are created equal. Experience, knowledge, focus and the ability to successfully partner make a significant difference in measurable results achieved for Condominium and Homeowner Associations.