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email:
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Home Buying 101: Professional Management vs Self Managed

There are pros and cons to Professional Management as well as pros and cons of Self Managed.

Professional Management

There are significant advantages to professional management with the trade-off being cost. Professional management costs money.

Pros

No headaches with dealing with the property

Easy to have things done, one stop shop

They have professional contractors on hand

Ability to perform a reserve study easily

History of managing other properties

Cons

It costs some money for professional management

Sometimes slower to evaluate new contractors

Depending on the association, they can be slower to respond to requests

Sometimes you don't get to know staff since they usually are not on-site.

 

Self Managed

The main reason for self-managed associations is that it generally costs less. If you have a small association, this is usually fine as there isn't as much work to do anyway. On larger association properties, there is much more to managing the association that being self-managed usually doesn't work.

Pros

Having the ability to move very quickly

Having more control over evaluation of sub-contractors

Knowing the people that managing the property

Keeping costs down.

Cons

Getting overloaded with paper work or busy work related to the property

Not having people volunteer to run portions of the association

Forming subcommittees

Keeping track of funds (accounting)

Dealing with non-payments

Foreclosures

Dealing with law enforcement

Having to evaluate sub-contractors

Having to do repairs on the property

Relying on others in on the board that don't know anything about maintaining a property

Having to issue HOA paperwork for purchase agreements

 

Steven Hong - RE/MAX Results 
REALTOR, e-PRO, GREEN, Old Home Certified 
7700 France Ave S #230, Edina, MN, 55435 
612-990-9009 (cell) 
952-915-2252 (office)
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