6 essential Arizona property management benefits

Tuesday February 04, 2025

A guide to Arizona property management benefits

arizona property management benefits As an association board member, it’s natural to consider the cost of hiring an Arizona property management company. However, when deciding whether to self-manage or outsource, it’s essential to evaluate all the associated costs. Here are six critical factors and property management benefits that can influence the long-term success of your association.
 

6 reasons why a property management partner is worth the investment

  1. Time: The hidden cost of self-management

    Self-managing an Arizona association can be a significant time burden for board members. Between meetings, administrative tasks, and handling day-to-day issues, it’s easy for volunteers to become overwhelmed. A property management company takes these responsibilities off your plate, freeing up board members to focus on key decisions and community strategy.
     
  2. Risk: Avoid legal and HR costs

    Handling HR duties without professional help is risky. Self-managed associations can face costly legal issues, including fines for noncompliance with labor laws.

    For instance, if an Arizona association inadvertently violates a labor law related to the Family and Medical Leave Act (FMLA), discrimination, or workers’ compensation, they may be subject to hefty fines. Depending on the number of employees you are responsible for and your understanding of federal and state law regarding labor, your association could face significant fines or even lawsuits.

    By partnering with a property management company, your association benefits from HR expertise and legal protection, minimizing the risk of expensive mistakes.
     
  3. Size: More leverage for better deals

    FirstService Residential has the advantage of negotiating better deals for services such as utilities, insurance, and maintenance contracts. We can leverage our buying power to obtain better rates, something self-managed associations might struggle with. This can result in significant savings for the association.
     
  4. Reputation: Delivering a premium resident experience

    Arizona property management companies bring specialized expertise in creating and maintaining a high-quality resident experience. From lifestyle programming to customer service training, a property management partner can ensure that your community remains attractive to prospective buyers and current residents, ultimately raising property values.
     
  5. Finances: Managing complex budgets with expertise

    Arizona association finances can be complicated, especially when it comes to budgeting and managing reserve funds. A property management company has dedicated accounting teams to handle these responsibilities and offer strategic advice. They can also help with collections, delinquency management, and more, reducing the burden on your board members.
     
  6. Missed revenue: Uncovering financial opportunities

    Arizona property management companies often identify opportunities for additional revenue. They can help monetize community amenities or advise on better financial strategies for reserve funds.

    FirstService Residential-managed associations have access to dedicated financial services affiliate FirstService Financial, which offers a reserve program, insurance products, and lending services, to name a few. Its cash management team helps tailor short- and long-term strategies for each association’s unique needs, with the goal of replacing lower-rate funding accounts (brokerage-based money market accounts, sweeps, etc.), reducing ongoing security and tracking burdens, improving asset liquidity, and maximizing interest revenue.

    For instance, one master-planned association decided to partner with FirstService Residential after a financial audit revealed they were earning minimal interest on their reserve funds ($1,000 in annual interest from $1.5 million in reserves). After hiring FirstService Residential and getting a full banking analysis through FirstService Financial, they increased their interest to a projected $75,000 per year.

Final thoughts

While the initial cost of partnering with an Arizona property management company may seem like a significant expense, the long-term property management benefits often outweigh the investment. By reducing time spent on operational tasks, minimizing risk, and improving finances, a property management partner can help your association thrive. Consider the potential return on investment and reach out to FirstService Residential today to learn how they can help.
 
Tuesday February 04, 2025