While serving on your board of directors can be rewarding, it’s a significant commitment with a lot of responsibility. To ease the burden, stress, and liability, many boards hire professional management companies to oversee operations and offer continuity through access to procedures, personnel, and business equipment. Although hiring a management company comes at a cost, and each contract is different, partnering with a reputable one can help you save time, effort—and money. Read on to learn how.
A management company’s financial services allow you to improve your accounting measures.
Maintaining the financial health of a condo is a key board responsibility, but it can be a task beyond the board’s professional capabilities. Whether board members have an accounting background, ultimately, mismanagement of funds can have detrimental consequences to your bottom line.
Luckily, many management companies have skilled accounting personnel and employ the latest software to accurately represent your condo’s finances and align with the highest security and safety standards. A management company can also handle most day-to-day financial responsibilities, develop a solid annual budget, keep records, and share recommendations to prevent special assessments.
Some management companies leverage advanced technology solutions to provide greater efficiency and cost savings on community operations.
Residents expect their condo to deliver digital solutions that make their lives easier. By adopting a management company’s advanced technology, you stay competitive in the market, maintain resident satisfaction, and work more efficiently within your organization. A management company’s technological solutions, like an operations management platform, community app, or community website, might also help you cut costs. You’re most likely to see savings in these areas:
- Postage. Instead of sending notifications through the mail, distribute them digitally for free.
- Printing. Save paper and money by communicating events and updates via email.
- Website development. Don’t pay someone to build your community’s website when many management companies offer this service.
- Payments. Automate payments to vendors so you won’t incur late fees.
Management companies offer free board member training to help you make more informed decisions for your community.
Community management can be complex. While it’s important to have a network of experienced professional advisors and service providers to ensure your community is protected and prepared for the future, management companies often host educational sessions where these same professionals share their insight for free. Generally, you can get free advice about:
- Legal updates
Board members can trust that the guidance they’re receiving is accurate and lawful, and they can leverage this expertise to stay abreast of the latest industry developments and access cost-effective resources that may not be available to self-managed communities. You don’t have to spend money on courses or expensive partnerships to ask questions and get the valuable information you need to set your community up for success.
Management professionals have a better understanding of relevant industry laws so you might avoid spending money on legal fees.
Every condominium must operate under a specific set of legally-binding guidelines, including a community’s governing documents and local, federal, provincial laws. Among the potential challenges, detailed governing documents must be adhered to correctly, contract negotiations may require legal intervention, condo rules change, and established laws must be followed.
Condominium managers typically hold certifications that require specialized training and education. That certification permits managers to offer guidance within their scope of expertise and identify when a lawyer licensed attorney would benefit the board.
Condo management companies review supplier and service contracts to ensure you’re getting what you paid for.
In an effort to lighten the board’s load, many managers take on the responsibility of overseeing contractors, checking in on projects, and reviewing service contracts to confirm each vendor delivered on their services. If there are inconsistencies or unsatisfactory services, or the current contract prices aren’t competitive, the management company can assist in finding an alternative vendor.