When times get tough financially, a lot of people start doing away with services that they had previously used, in an effort to save money. While that can sometimes be a good idea, depending on the service and the cost of it, it can also cause problems for people who want to save money but end up spending more in the long run. The foreclosure crisis has recently caused some of the smaller condominiums and HOAs in Florida to drop their property management companies, for example. Self-management is what they’re turning to, because they believe that it will save them a lot of money overall. The larger condominiums and HOAs are keeping their companies, but they’re trying to negotiate with them so that they use fewer services and pay less money.
While that’s good in theory, it won’t necessarily save these HOAs and condos any money overall. Property management companies are important, because they handle the ins and outs of renting the homes, condominiums, apartments, or commercial spaces. They also take care of maintenance and other problems, and they collect the rent and other fees. They then remove their fee and send the rest to the person or company that owns the building that they are managing. It’s easy for the property owner, but the fee that the management company takes is something that a lot of the condominiums and HOAs today are trying to avoid.
There’s a reason why that’s bad. These HOAs and condominiums are all on their own when it comes to tackling problems that come up. They may have trouble collecting rent, and when things break, they have to get someone out there to fix them. They also need maintenance for their condo or complex, or the homes in the subdivision. All of those things add up, and then there’s the hassle. It may be more work than many property owners realize.