HOA Management Fee
Hello,
For condominiums, how much do property managers charge to manage the HOA and Complex? Usually went rental properties it is a percentage of rents but how do they do it for complexes? Thank you!!
Anthony, the HOA should already have an expense amount allocated towards management in their budget. If they have in-house staff to manage the complex or have been utilizing the same vendors for years the cost will be low.
It can vary depending on the level of service. Management companies can be involved in maintenance, accounting, budgeting, running meetings, enforcing rules, collections of dues, etc. or any number of those things. For 340 units we have paid anywhere from 30k per yr to over a 100k.
Larger Condo Assns have a Management Fee, plus salaries of personnel and these salaries can exceed 100K total depending on the number of employees, i.e. maintenance, administrator/manager, assistant manager etc. We have a complex of 398 units with almost 1,000 residents. This complex has a Property Mgmt Firm (which is paid separately under contract), then we have the salaries of the various personnel, which we have currently 4 employees (2 admin/2 maintenance.)
We've had a couple of groups manage our Texas single family subdivisions, not condos though. They basically charge about $5 per unit per month. In addition, they charged a monthly acctg fee of $75. There were additional charges for additional copies of mgmt reports, attending additional meetings besides the annual meeting, etc. It got to the point that we could manage it better for the same cost so now we self manage our developments until we substantially complete construction and sell a supermajority of lots.
Hey Anthony,
It depends on what type of management they provide. Finance-Only management, or Maintenance-Only management will be cheaper than full service. The amount of units the HOA has is also a factor. Do you own a unit in an HOA? If so, request a copy of the approved budget for the current year from the management company. PM's are required to provide this to all owners. It should show how much the HOA is paying them annually and monthly.