FAQs on Community Developers

Why do developers work with property management companies?

Creating and launching a desirable residential community begins with a developer’s vision, but it takes proven experience, knowledge and skill to bring it to life.  Consequently, many home builders and residential real estate developers look to property management companies to help them execute on their visions for their planned communities. 

Property management companies leverage their industry expertise, local market knowledge and hands-on experience in managing communities of all types to educate and guide developers in a wide variety of critical areas, including funding, financial tools, association planning, governance models and more.  In addition, property management companies can provide key insights on the latest amenity trends and sought-after lifestyle programming to help shape the planned community’s distinctive identity and deliver exceptional living experiences. 

Property management companies may also provide expert guidance and consulting services to the developer’s landscape architects, land planners, attorneys, civil engineers other professional partners to help the project run smoothly and cost-effectively throughout the process.  Additionally, property management companies may continue working with the building or community through the build-out, transition and turnover processes and beyond to help ensure continuing success. This valuable guidance and support can to help developers reduce costs, prevent unforeseen expenses and streamline operations, while creating sought-after communities that attract and meet the needs of future homeowners. 

When real estate developers and property management companies work in tandem, they can enjoy a productive and mutually rewarding partnership that supports each party’s knowledge, creativity and expertise – and creates a residential community that remains profitable, marketable and desirable to homeowners for many years to come.


What happens when a property transitions from developer control?

When a property developer transfers control of the homeowners association to its elected Board of Directors, the process is known as “transition.”  The transition process is governed by documents developed by the developer and usually begins when a target percentage of units are sold. 

The HOA should set up a transition team to manage the process, comprised of individuals invested in a successful outcome, such as Board members, interested community members and, if possible, one or more industry professional with association experience.  In addition, the HOA should hire an experienced attorney and consult with a property management company that has supported other communities through the transition stage. For more information on transition teams and their duties, read our article From Property Developer to HOA Leadership: The Importance of a Great Transition Team.


When should developers partner with property management companies?

Homeowners association (HOA) forward planning can last several years, depending on the size, complexity and unique needs and requirements of the planned community.  There are numerous details to plan, strategize and execute, including association and governance planning, social programs and amenities, pre-management and community readiness, transition planning and other key factors. 

Therefore, leading home builders and real estate developers often choose to begin working with property management companies from the earliest stages of development.  With their deep experience managing communities from conception through transition, turnover and beyond, property management companies understand the challenges and potential obstacles along the way, and can provide valuable insights, share best practices and customize solutions to secure their interests and ensure successful outcomes at every stage.