Management by definition is a process; a series of ongoing systems and controls put in place with a specific outcome in mind. The management needs and requirements of HOAs, co-ops and condominiums have helped define the overall property management industry.
Most condominium, co-op, and HOA properties have a management company handling their day-to-day operations; regardless of size, most buildings have many similar overall management needs and requirements. Systems like operations, maintenance, finance, accounting, billing, collections, insurance, landscaping, contract negotiations, vendor selection and compliance with federal, state, and local laws, remains consistent regardless of a property’s size. With all the moving parts requiring 24/7 awareness, knowledge and experience why would any HOA, condo, or co-op even consider self-management?
Building a Self-Management Team
The reasons to choose self-management may vary, but property size and budget will likely be key factors affecting any decision to transition into self-management.
Mary Ann Rothman, executive director of the Council of New York Cooperatives & Condominiums (CNYC) believes many small buildings simply cannot afford a professional property management firm.
Herb Rose, president of Herb Rose Consulting in New York City agrees that self-management can be more budget friendly, but only after a lot of sweat equity. “Successful self-management can result in substantial economy after a great deal of effort, he says.”