When it comes to hiring a property manager in New York City the decision to hiring one for a Homeowners Associations (HOA) can be a daunting task in the general, a homeowners association is when a community of people buy properties in a proposed development. They form the government of the development and oversee the day to day operations of the HOA. Membership in the HOA is usually mandatory by owners of the properties and members are fiduciaries who handle comply with community rules and collecting fees and fines. The members volunteer their time without compensation to do this work.
Although there is definitely a cost saving function into using volunteer members into doing the managing of the HOA, it may become time consuming for members who have jobs and families to split time with. When this becomes an issue for the members, you can see why there would be a need for a third party property manager in order to assist the HOA. This is especially true when it is a growing or large community that may have issues such as compliance with regulations, collection of fees and fines and addressing community issues are involved.
We know that property management can become one of the most important aspects of having your HOA become successful. That is why it is important in determining whether the fees associated with hiring a property management company outweighs going on it on your own.
Here are two huge factors that can be considered in deciding whether there is a need for a NYC property management company for your HOA:
- Do you have the amount of personnel to handle the operations of the HOA and are they qualified to do the work?
Because you have a volunteer staff, it is important to know whether they are committed to the job. It can become difficult to amass a staff that is reliable when they are volunteering and have other responsibilities besides working for the HOA. This may not be an issue if you have a fairly small amount of units, but it can become a little more burdensome when your HOA involves over 20 units and multiple buildings for example.
Also it is important to know whether you volunteer staff has the requisite expertise in order to do the job. You can have the staff to do the job but if they do are not equipped in functioning then it becomes a liability for your HOA. Having experienced members is something you should also be looking for if you want to go on your own. Most property management companies have to expertise to handle these issues and in the long run will save your HOA time and money.
- Do you have the staff that is willing to enforce the rules of the HOA and collect fees?
Experienced property management companies have a staff that handles enforcement of rules and regulations. They also have accounting software and staff that assists with the collection of fees and the levying of fines. In many instances it can become difficult for neighboring owners to have one be a judge on a matter as well as the collector of fees. There might become bad sentiments between neighbors that may become long-lasting as a result of a miscommunication or just because someone is doing their job on behalf of the HOA.
It is most of the times better to have an independent entity handle these situations. There would be less animosity and property managers are aware of what is needed in order for owners to comply with the rules and can independently inspect the premises to make sure that there is a rectification of the violation.
It is also easier for property management companies to handle monthly fees and dues. Besides collecting fees they have experience with collecting fines and assuring that the HOA is within their yearly budget.
Once your HOA decides that it would be in the best interest in hiring a property management company then you should consider reputable companies with experience in handling associations like yours. Due diligence should be performed which would include interviews and follow-up phone calls to references.
It is important to take these factors into account when deciding on a property manager for your NYC Homeowners Association. If you are in need for an experienced property management company that maintains successful and long-term relationships with the clients then Blue Harbour Property Management may be for you. We are a full service property management company servicing Manhattan, Brooklyn, Queens and the Bronx.