How Much Does an HOA Management Company Cost
It’s important to remember that homeowner assessment fees (aka HOA dues) cover various costs, like insurance, municipal services, common area insurance, maintenance of common areas, and anticipated future expenses among many other expenses. The management fee is a small portion of the assessment fee. Additionally, various factors including community location and size, the scope of services, management expertise, and state, local, and municipal laws, can impact management fees.
What Factors Influence HOA Management Pricing
The community amenities and age play a role in the amount of time required to professionally address issues and to operate in the most efficient and cost-effective manner. In addition, the size of a community impacts management fees. For example, larger communities may have a are lower fee because administrative efforts are conducted on a larger scale. However, communities with large common areas (clubhouse, pool, multiple gates, parks, etc.) that need extensive maintenance and oversight may mean that fees will be slightly higher than in a community without these amenities. In addition, larger communities often contain more homes and residents, which may require more time to address compliance issues.
The scope of association management services and frequency is another important factor that impacts management fees. For example, full-service management often includes administrative, accounting, and maintenance coordination services. This includes handling all financials (insurance, budgets, assessments, delinquency management, etc.), ensuring compliance with the governing documents, the preparation and facilitation of meetings, fulfilling maintenance requests, and homeowner communication among many other services. However, the benefit from full-service management is that board members can be assured that their community is operating in every homeowner’s best interest and in accordance with all governing requirements and applicable laws.
What to Look For in an HOA Management Services Company
Community association management company expertise is an important consideration. It’s a vital consideration when interviewing for a management company. Dedicated and experienced HOA management companies have certified community association managers. Additionally, the company itself could be accredited which is a strong indication of their dedication to the community association management industry. An Accredited Association Management Company (AAMC) is the gold standard for community association management companies. An AAMC certification means that the managers are certified by the Community Associations Institute (CAI) and the company has demonstrated the utmost concern for providing professional and ethical services. This type of leadership is a vital aspect in ensuring that a community is operating at its highest potential. Working with an Accredited Association Management Company also means that their management expertise will translate to board members. Serving on a board is a rewarding role, but it’s also time-consuming, so having reliable and knowledgeable management can prevent miscommunication and improper management.
Seek Out an Accredited Association Management Company like Infinity Property Services
Working with an Accredited Association Management Company means less concern since the company is dedicated to maintaining its certification through continuing education and training of its staff. It’s clear that various factors, such as community location and size, the scope of services, management expertise, and local laws, determine management fees. Considering all these factors may become overwhelming for someone who doesn’t work in the field, so it’s the management team’s responsibility to communicate their reasoning for their fees and answer any questions that board members may have during their partnership.