If your condominium corporation is self-managed, you may think everything is going along just fine. But what you may not realize is just how much a professional condominium management company could improve your community and how much money it could save your corporation in the long run.
Many condo boards are surprised to discover that the value they get from hiring a full-service management company is as much as 10 times the amount they’ve invested. Here we describe six ways you might be pleasantly surprised.
- Costs for a variety of products and services decrease.
When you partner with a full-service condo management company, you get the benefit of its knowledge about local costs, as well as its buying power. A good company is able to benchmark what you pay against what other similar properties pay to determine whether you are being charged too much. If your costs are not competitive, the company can renegotiate your contracts or switch to other reliable vendors that can offer you better pricing.
Consider all the vendors and contractors with whom you do business. Now you can begin to get a picture of the amount of money your corporation could save. Some of the areas where your costs could be reduced include utilities, waste management, landscaping and cable services, to name just a few. The right management company will also make sure that you aren’t just paying less but that you are getting the most value for your money as well.
- You discover areas of unexpected savings.
An experienced condo management company will be familiar with potential areas in which your corporation could save money that you may not have considered. The company can perform an analysis of all your operations to come up with strategies to reduce your costs and even improve residents’ quality of life.
For example, a management company might find ways to improve your energy efficiency without requiring too much initial outlay of money. Possibilities include giving your heating systems a tune-up, replacing outdated air conditioning equipment with more energy-efficient units, or upgrading lighting inside and outside your buildings. These types of improvements could save your corporation thousands of dollars on your utility bills.
- Residents’ units retain their value.
A condominium management firm handles your day-to-day operations and puts your property on a schedule for regular maintenance. It also takes responsibility for painting, resurfacing pavements and other long-term maintenance projects and upgrades. As a result, the property is kept up better and is more appealing to potential buyers.
- Delinquent condo fees are (finally) collected.
Many self-managed condo corporations have difficulty collecting overdue condominium fees. For one thing, it is among the least-enjoyable tasks that board members must undertake. Additionally, it can feel awkward to collect delinquent fees from neighbors who may also be your friends. A condominium management company, however, faces no such obstacles. The company can remain completely professional and objective when dealing with residents who owe money to the corporation.
- Your onsite staff becomes a stronger team.
It is not unusual for a condominium management company to keep your existing staff (if that is in your corporation’s best interest). The company should also be able to provide training to increase your staff’s skill set and service level. Such programs—along with more accurate job descriptions—will make a noticeable difference very quickly. Additionally, employees are happier. They typically have better benefits when they work for a management company, and they take more pride in their work when they learn new skills and feel more capable.
- Residents experience a greater sense of community.
Having more streamlined operations and a more professional and dedicated staff does a lot to enhance residents’ lifestyles. The onsite management team also knows how to improve and initiate activities and programs that are best suited to the unique needs and desires of your residents. As a result, residents have more opportunities to get to know each other and feel more connected.
It is not easy for residents to manage their condominium corporation themselves. Board members have to be especially dedicated to take on that level of responsibility and workload. Hiring an expert to manage your corporation’s operations and to enforce policies, however, enables your board to focus on its real task of policy making, budgeting, and running meetings. As you can see, it can be money well spent.
Learn more about how your condo corporation can transition from being self-managed to being professionally managed. Contact FirstService Residential
, the leading condominium management company in Alberta.