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Condo Property Management ?

I live in a self managed condo complex in Phoenix AZ. It is a small 16 unit place with a pool. The water is a shared expense as with the upkeep of the property. I like being self managed however I do think it is time to turn it over to a management company. We have some owners who are late or don’t pay thier assessments and I think a management company is better eqipted to handle that. Our water was turned off due to non payment and the common place electric. I want any ideas and knowledge on if a management company is good and what can they do to fix this problem. We have very little money to begin this process but it has to be done NOW! Help PLEASE

Reading between the lines, you have several problems. On one hand you say you have little money, yet on the other hand hiring a Management Company will not be cheap, particularly for a 16-unit complex. Generally, small associations (i.e. – less than 30-40) do not hire management companies and do it all themselves. There are not enough units to support the fees for a management company or to hire a separate site manager. So, if you want a Management Company to do the “dirty work”, be prepared to pay for it.

A second problem may be that your current Board of Directors may not have the desire or skills to deal with the unpleasant task of collecting unpaid fees from its neighbors. Unfortunately, this comes with the territory of being a BoD member. The smooth and ongoing financial operation of any homeowner or condo association depends almost exclusively on the timely and complete payment by unit owners of their monthly maintenance/common charges. Failure to meet this obligation on the parts of only a few can lead to an association’s failure to meet its own obligations and to force it to raise fees on the remaining members. This in turn can cause yet further delinquencies or default payments. It is clear that fee collection is one of the most important responsibilities of a BoD.

A third problem may be that the association does not have a written collection policy or it may not have enforced it in the past. Whether they realize it or not, all associations adopt a collection policy. Some do it unintentionally and without realizing what they have adopted; others deliberate and consciously adopt a policy that fits their needs. If the association does not yet have a written late-fee and collection policy, this should be its highest priority. Every step in the process should be defined including timing requirements and individual responsibilities. The process should automatically happen no matter what. By publishing and distributing this policy to all owners, there is no confusion. It is no longer personal but just the process by which fees are collected. It’s important to act quickly if and when a unit owner defaults. A typical problem for associations is when they don’t move fast enough, sometimes because of sympathy. Collecting delinquent assessments from any owner becomes almost exponentially harder with the accumulation of every additional delinquent assessment, so the earlier that the Association begins collecting, the better.

Do a search on the Internet for sample condo collection policies. Also, visit www.condopresident.com and view the contents section to verify that your association has all of the necessary management components in place to run an effective organization.

Good Luck
JoeK
www.condopresident.com