It is said for every association there’s a management company. Maybe so, but when the board changes, sometimes the management relationship changes too.
Here’s an example. HOA "A" voted in a rather loose group to the board. The community has some serious problems coming up and none of the members of the board can see the train wreck approaching. However, your company sees it and your lead manager wants to wave the red lantern. Finally, the board acknowledges the situation and says, as they always say, "Hey, you’re the professional. Take care of it. That’s what we pay you for."
Here is where many in our industry miss the opportunity. Either the standard contract or company policy infers that is exactly what you do. Or, your client contract clearly spells out that yes, we do it but not without additional fees.
It is the additional fees that create the "leadership model". It is the way your company sells all that pent up experience. It is where extra value is created and available, for a price.
If the board has committees, owner experts (real actual experts) or other resources available, and they choose to handle this work themselves, then your firm continues to provide routine HOA service and support. This is within the guidelines of your contract and your company policy.
One way to build value with this approach is to do more "basic" HOA work and leave special work to others. In other words, maintain a streamline, almost an "assembly line" system of office work to fulfill the contract ’s scope of work.
Either way is fine in building value. Just don’t let one cross the other without extra income.
It is said there is a management firm for everyone. Some companies are “leader” oriented and others are not. As a professional management expert, it is expected that your team take the lead in organization, communication and execution of all that is necessary for a smooth running community. In this way, your company is providing responsible leadership for your association clients. When the professional has command of the direction of the community, the community will go in the right direction. It would seem then that the first level of service to the community is management expertise.
In management expertise there are three basic services; financial, administration and property maintenance management. Do these three well and you’ll establish your reputation as an expert.
Reflect for a moment. Is this basic level your point of origin in your relationship with your client? If your company is not proficient in each of these three, then it is difficult to become a leader company. And, leader companies seem to garner more profitable contracts.
About thirty years ago a new industry "emerged" or, should I say, "was forced" upon the real estate world. It became a management style that seemed to be like property management but was, in reality, property management by group.
Real estate developers began to see the value of building homes linked together in various ways but would share ammenities such as landscaping, parks, pools and such. While not entirely and new idea, (Condos date back to ancient Rome), these communities defined a different group of homeowners. They were "stuck" together as "managers" of their own community. They were linked as one because they shared "common use" property. They were owners of a common interest development. Today,universally recongnized as a community association.
In the United States there are tens of thousands of assocations. They are as small as three homes or as large as full cities. They all have one thing in common. They are "management by ownership". And they have little experience in doing the job.
Where there’s a need, there’s an opportunity and a new industry evolved. Community association management from association and property management companies. Today, there are hundreds of thousand of associations and tens of thousand of management comnpanies.
This page is maintained for the owners of these companies. Here, they can exchange ideas and participate in the development of opportunities.
Jim Manning
