Self-Management: The management functions are generally completed by the volunteers that serve on the Board of Directors and are most often utilized by small associations to save money. These functions typically include the accounting, vendor oversight and homeowner issues.
Financial Management: Accounting services professionally contracted for collecting assessments, paying invoices, reconciling the monthly accounts receivable/accounts payable, creating a budget and preparing the annual financial report. The financial manager does not visit the property, contract for vendors, address homeowner issues or enforce the covenants.
Full Management: Includes all accounting services, budget preparation, vendor payments, property management and customer service for the residents. Management is responsible for the routine inspection, maintenance and repair of the amenities, exteriors of condominiums and townhomes as well as the grounds of the community. Managers also oversee vendors, answer account questions and address owner concerns.
- Portfolio vs On-Site
Portfolio managers provide full management for multiple communities at the same time while an on-site manager is dedicated to one community. The cost of a portfolio manager is shared among multiple associations while an on-site manager is utilized for associations that can afford the cost of a dedicated manager.
- Services Provided
Either on-site or portfolio management should provide experienced and knowledgeable staff with responsive customer service within a specific time frame, accurate and timely financial records, accounts payables and receivables, vendor oversight with reputable contractors, insurance procurement, board meeting attendance with a proactive approach to all maintenance issues as well as concerns of the Board and membership.
- Company Reputation
It is important to note that the business approach will affect the level of service provided and customer satisfaction of the Association members. If the company business model is based on lowest cost per door than the level of service will be reflected accordingly. If the company business model is based on client service satisfaction than the cost per door will be reflected accordingly. The size of the company is not necessarily indicative of the service that will be provided. The experience level of the manager and the back-office support services will affect the customer response rate, accounting accuracy and issue resolutions.