Thank you all in advance for taking the time to read my question.
I own a rental condo in a development and have recently asked to join the HOA board, as I was running into issues renting my own unit. I am a licensed agent in South Florida and I manage a small portfolio of my own rental property, as well as flip condos/houses full-time. I do most of my own labor and am very familiar with managing tenants, subcontracting out work, and keeping up property.
The current management of my condo dev was being done solely by volunteers (I don't think they had any specialized licenses). When I approached the president of the HOA, I mentioned that I'd be happy to volunteer to help them out, as the woman who was doing most of the work has fallen ill. I told him what I do, and he suggested I submit a quote to manage 40 units by next week. While I am familiar with managing my own portfolio, I have never done anything on this scale. It doesn't seem very difficult: I will basically be responsible for accounting, screening (very low turnover; very few rentals), common grounds maintenance, and resolving any problems that may arise.
Okay, so my question is: what would be a reasonable rate to quote them for my monthly fee of managing 40 units? I was thinking $1000/m would be reasonable, but seeing as how it was being managed by volunteers up until now, I feel some hesitation about naming my fee. He also mentioned that another local management company would be submitting a quote of their own. I have no idea what other companies would charge for this amount of units. Should I offer a flat fee or per unit fee? Also, as it was previously being managed by people without any specialized license, is it necessary that I obtain some kind of license in FL other than my real estate agent license?
Any feedback from experienced property managers would be greatly appreciated!
Thanks in advance and best of luck with your deals.
Ist I would ascertain how much the current HOA dues are and how is each applied and what is put into a reserve account for future maintenance, insurance or whatever is covered by the HOA dues. Is there really any room for the expense of managing? Would your management fees require any special assessment to all the owners of the units?
Its hard to say without first knowing what is already being paid and what kind of serves are generated and how they are to be applied.
Thanks a good point, I don't know how it would go over if everyone's maintenance increased in order to meet my fee. But I think that is inevitable given that they are getting a quote from another company, so paid management is going to happen regardless.
I would personally never manage a community I live in. It can be done and has been done but has the potential to turn your neighbors against you quickly which defeats the whole "community" idea. We charge about $1,850/month for 40 units but our area may be more expensive than many. Also, don't underestimate how much work this may end up being, especially if you're being paid for it. You've been warned. :-)
You likely will need a Fl CAM license, in order to get paid to manage a COA. Also, there are Many requirements for an association, and I am guessing liabilities as the manager, you don't have with your own properties.
Yikes, an LCAM is required and if you are also handling leasing for owners other than yourself you'll also require a real estate brokers license. DPBR and FREC could come down hard on you for practicing without a license. It's a 3rd degree felony and up to $5k fine to practice real estate without a license in FL.
The HOA is self managed now, that is allowed, but as soon as money is exchanged for services it's a whole different game. Be cautious!
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