How a condo is managed can quickly determine its success or failure. While

many small condominiums can be self-managed, it is almost a necessity for

medium to large-sized condos to hire an outside HOA management company to

handle the responsibilities. Cost and time are the two most influential

factors all associations will consider when deciding upon the style of HOA

management, whether it be through HOA property management or

self-management.

The number of units in the condominium will be the main determinant of the

cost for what style of management will be implemented. Generally speaking,

the majority of professional property management companies will not manage a

building with fewer than twenty units because it is simply not

cost-effective for them. It is also not cost-effective for a small building

because they generally have limited operating budgets.

A positive aspect of HOA management companies is their solid relationships

with vendors and legal firms in the event an issue with HOA laws arises.

These relationships mean that vendors and law firms will make every effort

to provide great service. The vendors know they will be paid on time by a

stable management firm, and this will translate to repeat business. A

self-managed condo association typically does not have that kind of pull

with service providers.

When condos choose self-management, however, things do tend to get

accomplished just as well as when handled by professional homeowners

association management. When the owners have a personal stake in the success

of the association, things tend to function well. Self-management of a condo

also creates a sense of community for the owners. It is quite possible for

owners to work together effectively when operating procedures are

established and duties are delegated in a fair and consistent manner.

Subsequently, a strong sense of accomplishment will be felt among the

members when the tasks are accomplished through a concerted team effort.

Tim Arel believes that self-management should only be entertained when there are owners available

who have not only plenty of time available to them, but also the broad range

of knowledge required to address a variety of condo management issues all

the way from finances to maintenance issues. The cost of correcting errors

made due to poor management skills can quickly exceed the cost of simply

allowing a professional to perform the job.

Of course, HOA Property Management companies can also be quite expensive,

and a company may not always choose the most cost effective methods of

getting something done. The vast majority of homeowners association

management companies are conscientious about adhering to high standards of

quality, but they will generally not be as particular about decision-making

as the owners will be since they have no personal vested interest in the

property. Furthermore, outside HOA property management may not be as

receptive to concerns or observant of problems when they arise, and they may

very well ignore certain issues that an owner would catch.

A very important responsibility of Homeowners Association Management is

deciding upon numerous policy issues and clarifying HOA laws. Professional

HOA management companies can certainly help to accomplish such tasks;

however, consulting with an attorney can have the same outcome when

self-management is chosen.

When a decision must be made regarding self-management versus professional

HOA property management, there are some general guidelines to be followed.

As a rule, for buildings with twenty units or less, self-management is often

the only option. For buildings between twenty and thirty units, either

self-management or the use of a HOA management can work, depending on the

property. In buildings with thirty units or more, professional HOA

management is most likely the best choice.