Regularly we receive calls from community housing boards seeking association management services. Not that we have not considered expanding into said market.
There are distinct differences in residential rental property management and community/association management. While several of these components overlap or reflect closely to one another; they are certainly 2 different "beasts".
Both require collection; one from the tenant and the other from the property owner.
Both require grounds service or other maintenance/upkeep items.
Each require utility servicing whether for specific individual units or community common area.
Both have provisions, stipulations and parameters to adhere to, oversee and enforce.
Community/association management services are responsible for dues collection, common area maintenance, service and utilities, compliance with community C.C.R.'s (covenants, codes and restrictions) and overall community operation and accounting.
Rental property management services are responsible for rent collection, property specific grounds and unit maintenance, utilities associated with specific unit and compliance with HOA and city provisions for property along with property specific accounting on both the tenant collections side and owner payable side. Including lease compliance.
So as these two services somewhat mirror one another the actual specific and "moving parts" are certainly different.
One thing I must add having a number of acquaintances with community association managers; they currently have their work cut out for them. These HOA management companies are trying to manage a community on a portion of the funds required to cover all the facets and costs of the community management. As you factor in all the foreclosures, pre-foreclosures and those that are delinquent on their HOA dues; this puts a strain on the community and the services the HOA can provide or pay for. One plus to this with the bank owned (REO) properties is that the lender is responsible for the HOA dues, compliance and grounds maintenance on those properties under their ownership. This helps relieve a bit of strain and help prevent further impact on these communities.
Another thing I am warning my investors of are the outstanding balances owed to the association
from the builders (gone under) based on contractual agreements and deferred payment dates. The impact this then may have to the property owners is the necessary services can not be supported by the current income of the community which results in the increased dues not to mention the initial community impact by the short-fall in the money to operate the community. This is still part of the correction process that has not fully taken place yet...
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