Realty Management Partners LLC | New Hampshire & Northern Massachusetts

Why Local Commercial Property Management is Crucial to Business Development in 2026

Fri, 17 Apr 2026 14:28:55 GMT

Local economic conditions, tenant expectations, and market dynamics continue to evolve in 2026, making strategic oversight of commercial assets more important than ever. Businesses depend on well-managed spaces to operate efficiently, attract customers, and maintain profitability. At the same time, property owners must balance occupancy, expenses, and long-term value. This is where local commercial property management plays a central role, aligning operational performance with broader business development goals.

Industry sentiment reflects a generally optimistic outlook despite ongoing adjustments in the market. According to AppFolio, research indicates that 77% of property managers expect their portfolios to expand in 2026, even as market conditions shift. That level of confidence underscores the importance of strong, localized management practices that can adapt to changing circumstances while supporting both tenants and investors.

Local Market Expertise and Commercial Growth

Understanding Regional Economic Trends

A deep understanding of local economic conditions is foundational to effective property oversight. Regional commercial property management teams are positioned to interpret shifts in employment trends, consumer behavior, and regional development patterns. These insights allow property managers to anticipate demand for specific property types, whether industrial, office, retail, or mixed-use.

Regional knowledge also supports more accurate rental pricing strategies. Setting lease rates too high can deter prospective tenants, while undervaluing space reduces potential revenue. A localized approach ensures that pricing reflects current market realities, helping maintain competitiveness without sacrificing profitability. This balance contributes directly to sustainable business development for both tenants and property owners.

Tailoring Property Strategies to Local Demand

Commercial properties are not one-size-fits-all assets. Each building serves a specific function, and its success depends on how well it aligns with local demand. Local commercial property management professionals can tailor leasing strategies, marketing efforts, and property improvements based on the needs of the surrounding business community.

For example, industrial and warehouse spaces may require different amenities and lease structures compared to retail storefronts or office environments. A localized management approach ensures that each property is positioned to attract the right tenants, minimizing vacancy periods and enhancing long-term stability. This targeted alignment plays a significant role in fostering business growth within the property.

Strengthening Relationships Within the Community

Strong relationships are a defining characteristic of successful property management. Local teams often have established connections with brokers, contractors, and service providers who understand the nuances of the regional market. These relationships streamline operations, from filling vacancies to coordinating maintenance and capital improvements.

In addition, maintaining open communication with tenants fosters trust and satisfaction. When tenants feel supported, they are more likely to renew leases and invest in their own business operations. This stability benefits property owners by reducing turnover costs and maintaining consistent occupancy rates, both of which are essential for long-term business development.

Operational Efficiency and Tenant Retention Strategies

Enhancing Tenant Satisfaction and Stability

Tenant retention is one of the most effective ways to sustain revenue and reduce operational disruptions. Local commercial property management prioritizes tenant satisfaction by addressing concerns promptly and maintaining a high standard of building services. Clean, well-maintained spaces create a positive environment that allows businesses to focus on their core operations.

Responsive management also plays a key role in lease renewals. When tenants experience consistent support, they are less likely to seek alternative locations. Retaining existing tenants reduces the financial impact of vacancies and the costs associated with marketing and preparing spaces for new occupants. This continuity directly supports business development by maintaining steady income streams.

Minimizing Vacancy and Turnaround Time

Vacancy management is a critical component of commercial property success. Empty spaces do not generate revenue, and prolonged vacancies can negatively impact a property's overall performance. Local commercial property management teams work proactively to minimize downtime by preparing spaces efficiently and leveraging networks of specialized brokers.

By connecting with professionals who focus on specific property types, managers can match available spaces with qualified tenants more effectively. This targeted approach reduces the time required to secure new leases, ensuring that properties remain productive assets. Faster occupancy cycles contribute to stronger financial performance and greater investment stability.

Coordinating Maintenance and Operational Oversight

Routine maintenance and operational oversight are essential for preserving property value. Local teams are well-equipped to manage vendor relationships, schedule regular inspections, and address issues before they escalate into costly repairs. This proactive approach not only protects the physical asset but also enhances the tenant experience.

Efficient maintenance operations also support compliance with safety standards and regulatory requirements. By ensuring that systems function properly and that buildings remain in good condition, property managers help mitigate risk for both tenants and owners. This level of oversight is a key factor in maintaining a reliable and attractive commercial environment.

Financial Performance and Long-Term Investment Value

Managing Budgets and Financial Reporting

Accurate financial management is fundamental to the success of any commercial property. Local commercial property management provides detailed reporting that allows property owners to monitor performance and make informed decisions. Regular financial statements, budget planning, and variance analysis help identify trends and opportunities for improvement.

This level of transparency ensures that property owners have a clear understanding of income, expenses, and overall return on investment. By maintaining consistent financial oversight, managers can implement strategies that enhance profitability while controlling costs. This disciplined approach supports both short-term stability and long-term growth.

Supporting Capital Improvements and Value Enhancement

Capital improvements play a significant role in maintaining and increasing property value. Whether upgrading building systems, renovating common areas, or re-configuring spaces for new tenants, these projects require careful planning and execution. Regional commercial property management teams coordinate every stage of the process, from scoping and permitting to contractor selection and project oversight.

Strategic improvements not only enhance the physical appearance of a property but also increase its appeal to prospective tenants. Well-executed projects can justify higher lease rates and attract businesses that contribute to a vibrant commercial environment. This ongoing investment in property quality is essential for sustained business development.

Aligning Management With Investor Objectives

Every commercial property operates within the context of an investment strategy. Local commercial property management aligns daily operations with the financial goals of property owners, ensuring that decisions support overall performance. This includes balancing tenant retention with market-rate leasing, managing expenses without compromising quality, and identifying growth opportunities.

Experienced management teams understand the interconnected nature of these factors. By addressing multiple components of the return on investment equation simultaneously, they create a cohesive strategy that maximizes value. This comprehensive approach is particularly important in 2026, where market conditions require both adaptability and precision.

The commercial real estate landscape in 2026 demands a strategic, localized approach to property management. From understanding regional market trends to optimizing tenant relationships and financial performance, local commercial property management serves as a critical driver of business development. By combining market insight with operational expertise, property managers create environments where businesses can thrive, and investments can grow.

As market conditions continue to evolve, the importance of localized knowledge and hands-on oversight will only increase. Property owners and tenants alike benefit from management strategies that are responsive, informed, and aligned with long-term goals. In this context, local commercial property management remains an essential component of sustainable success in the commercial real estate sector. To learn more about reliable commercial property management in the area, be sure to contact Realty Management Partners LLC!

8 Challenges Local Property Management Faces Today With Proven Solutions

websites@hibu.com (Hibu Websites) — Fri, 13 Feb 2026 18:10:33 GMT

The property management industry faces unprecedented challenges in today's rapidly evolving real estate landscape, where economic pressures, changing regulations, tenant expectations, and operational complexities create constant obstacles for professionals managing residential and commercial properties. Property managers must balance the financial interests of property owners with the needs and rights of tenants while navigating maintenance issues, legal compliance, market fluctuations, and countless daily challenges that can overwhelm even experienced professionals. Understanding these challenges and implementing proven solutions is essential for property management companies to deliver value to property owners, maintain positive tenant relationships, and operate sustainably in an increasingly demanding environment. This comprehensive exploration examines the most pressing challenges facing property management today and provides actionable strategies that successful companies use to overcome these obstacles and thrive despite industry difficulties.

Challenge 1: Managing Rising Operating Costs and Expense Control

One of the most significant challenges facing local property management today is controlling rising operating costs while maintaining property quality and tenant satisfaction in an inflationary environment. Expenses for routine building maintenance, utilities, insurance, materials, and contractor services have increased dramatically, squeezing profit margins and forcing difficult decisions about where to cut costs without compromising property conditions. Property managers must find creative solutions to reduce expenses without neglecting necessary maintenance that protects property values and tenant safety. Implementing energy-efficient systems, negotiating better vendor contracts through vendor management programs, and prioritizing preventive maintenance over reactive repairs help control costs while maintaining property standards that satisfy both owners and tenants.

Challenge 2: Attracting and Retaining Quality Tenants

Finding reliable tenants who pay rent on time, care for properties, and stay for extended periods remains a persistent challenge that directly impacts property performance and owner satisfaction. High turnover creates substantial costs through lost rent during vacancy periods, marketing expenses, screening processes, and preparation work needed between tenants. Property management companies must develop effective marketing strategies, competitive pricing, thorough screening processes, and tenant retention programs that reduce turnover and maintain occupancy rates. Creating positive tenant experiences through responsive maintenance, clear communication, and professional management encourages lease renewals and reduces the costly cycle of constant tenant turnover. Properties offering desirable amenities, well-maintained common areas, and professional management through services like condominium and HOA community management or multifamily and apartment complex management experience better retention than those lacking these advantages.

Challenge 3: Navigating Complex Regulatory Compliance

Property managers must navigate an increasingly complex web of federal, state, and local regulations covering fair housing, safety codes, environmental requirements, and tenant rights that vary by jurisdiction and change frequently. Non-compliance can result in substantial fines, lawsuits, and reputational damage that threaten business viability and create liability for property owners. Staying current with regulatory changes, implementing compliant policies and procedures, and properly documenting all activities require constant attention and expertise that many local property management professionals struggle to maintain. Solutions include ongoing education, consulting with legal professionals, implementing comprehensive compliance checklists, and using property management software that helps track required activities and deadlines. Life safety management programs that ensure properties meet all safety requirements protect both tenants and property owners while demonstrating professional diligence and commitment to compliance.

Challenge 4: Handling Emergency Situations and After-Hours Issues

Emergencies don't respect business hours, yet tenants expect immediate responses to urgent situations such as burst pipes, heating failures, security breaches, or other critical problems, regardless of when they occur. According to 99Firms, a significant portion of property owners, 51%, hire property managers, and mental health is a growing concern for industry professionals, with 53% reporting struggles with their mental well-being, partly due to the constant stress of being on call. Local property management companies must establish systems for handling emergencies efficiently without burning out staff or creating high costs for property owners. Implementing 24/7 emergency services with clear protocols, maintaining relationships with reliable contractors who provide emergency response, and using technology to triage issues helps manage after-hours situations effectively.

Challenge 5: Maintaining Properties Across Diverse Portfolios

Property managers often oversee diverse portfolios including residential units, commercial property management assignments, condominiums, HOA communities, and various property types that each have unique maintenance requirements and challenges. Coordinating routine building maintenance, quality repairs and replacements, and preventive care across multiple properties with different needs, systems, and age profiles creates logistical complexity. Developing comprehensive maintenance schedules, building relationships with reliable contractors through handyman services and vendor management, and implementing preventive maintenance programs reduces emergency repairs and extends equipment life. Using centralized systems to track maintenance across all properties, scheduling regular inspections, and addressing small problems before they become major issues helps local property management companies maintain portfolio quality efficiently. Turn-key client solutions that provide comprehensive maintenance management give property owners peace of mind that their investments are being properly cared for, regardless of property type or age.

Challenge 6: Managing Financial Responsibilities and Reporting

Property owners expect detailed financial reporting, accurate accounting, timely rent collection, appropriate reserve planning, and transparent financial management that protects their investments and provides clear performance metrics. Managing finances across multiple properties, handling security deposits properly, collecting delinquent rent, paying vendors and contractors, and maintaining detailed records creates a substantial administrative burden. Errors in financial management can result in legal problems, tax complications, and loss of client trust that damages business relationships and reputations. Implementing robust accounting systems, providing regular detailed reporting, maintaining proper reserve and financial management practices, and ensuring complete transparency helps build owner confidence and demonstrates professional competence. Local property management companies that excel at financial management distinguish themselves from competitors and build long-term client relationships based on trust and demonstrated reliability.

Challenge 7: Leveraging Technology While Maintaining Personal Service

The property management industry increasingly relies on technology for efficiency, yet many tenants and property owners still value personal relationships and human interaction that technology cannot replace. Balancing automation and digital tools with the personal touch that builds relationships and resolves complex situations requires thoughtful implementation that enhances rather than replaces human connection. Property management software, online portals, automated communications, and digital payment systems improve efficiency and convenience when implemented appropriately for different audiences and situations. However, property management companies must ensure technology enhances service quality rather than creating impersonal experiences that frustrate tenants and owners who need human assistance.

Challenge 8: Competing with Self-Management and DIY Trends

Many property owners consider managing properties themselves to save management fees, particularly for smaller portfolios where professional management costs seem prohibitive relative to rental income. The rise of online tools, resources, and platforms has made self-management seem more accessible to owners who underestimate the time commitment, expertise, and challenges involved. Local property management companies must demonstrate clear value that justifies their fees by showing how professional management protects property values, reduces vacancy costs, ensures compliance, and provides owners with more free time and less stress. Offering flexible service packages, including support for self-managed properties, allows companies to serve clients who want some professional assistance without full management while demonstrating value that may lead to full-service relationships.

The challenges facing local property management professionals today are significant and multifaceted, requiring expertise, systems, resources, and dedication that go far beyond simply collecting rent and handling occasional maintenance requests. From controlling costs and navigating regulations to managing emergencies, maintaining diverse properties, and supporting staff well-being, successful property management demands comprehensive approaches and proven solutions. Property owners who understand these challenges appreciate the value that professional management provides and recognize that quality service protects their investments far more effectively than attempting to handle complex responsibilities themselves. The most successful property management companies distinguish themselves by implementing systems and solutions that address these challenges proactively while delivering exceptional service to both property owners and tenants. When you need professional expertise for condominium and HOA community management, commercial property management, multifamily and apartment complex management, or any property type, Realty Management Partners LLC is ready to help with comprehensive solutions, including handyman services, life safety management, routine building maintenance, support for self-managed properties, turn-key client solutions, and vendor management. We provide 24/7 emergency services, expert reserve and financial management, and quality repairs and replacements that protect your investment and provide peace of mind. For more information, contact us today!

Benefits of Experienced Commercial Property Management

websites@hibu.com (Hibu Websites) — Wed, 26 Nov 2025 00:09:14 GMT

Experienced commercial property management is crucial for maximizing the value of real estate investments. In today’s competitive real estate market, seasoned professionals bring invaluable expertise and proactive strategies to enhance returns. They manage everything from tenant relations to financial optimization, ensuring your property runs efficiently and profitably. This article explores the key benefits of engaging experienced commercial property management services.

1. Enhanced Tenant Satisfaction

1.1 Responsive Communication

Effective communication is key to tenant satisfaction. Experienced commercial property management professionals use modern tools to address tenant concerns quickly, maintaining positive relationships. By being responsive and approachable, they build trust, reduce misunderstandings, and prevent issues from escalating.

1.2 Proactive Maintenance

Preventative maintenance is a hallmark of expert commercial property management. Regular inspections allow managers to identify and address potential problems before they grow. This approach not only keeps the property in prime condition but also extends the lifespan of its systems and structures, leading to higher tenant satisfaction and retention.

1.3 Conflict Resolution

Conflicts are inevitable in property management, but skilled commercial property management experts have strategies to address them effectively. By approaching disputes with empathy and fairness, they prevent escalation, ensuring a harmonious environment and fostering tenant loyalty.

1.4 Personalization of Services

According to B2B Reviews, there are an estimated 124,866 property managers in the United States, making professional property management an essential component of real estate success. Experienced managers understand that each tenant has unique needs. They customize services—like offering flexible lease terms or tailored amenities—to enhance tenant satisfaction and retention, making the property more attractive in a competitive market.

1.5 Lease Renewal Incentives

Incentivizing lease renewals, through rent discounts or upgrades, helps reduce vacancy rates and ensures stable cash flow. This strategy strengthens tenant retention and creates a sense of community within the property, benefiting both tenants and property owners.

2. Strategic Asset Management

2.1 Market Analysis Expertise

Seasoned commercial property management professionals excel at market analysis, ensuring properties remain competitive. They adjust rental rates, assess demand for key features, and identify tenant preferences, using this data to make informed decisions that optimize property value.

2.2 Financial Performance Tracking

Tracking financial performance allows commercial property management experts to optimize operations. Regular analysis of revenue, expenses, and profitability ensures informed decision-making, driving long-term success and growth.

2.3 Risk Management

Experienced commercial property management professionals are skilled in identifying and mitigating risks, from market fluctuations to operational challenges. They develop risk management strategies, including contingency plans, that safeguard properties and protect investments.

2.4 Value-Added Improvements

Investing in value-added improvements, such as energy-efficient upgrades or aesthetic enhancements, increases property appeal and raises rental rates. These improvements also contribute to long-term appreciation, enhancing the property’s market value.

2.5 Long-Term Investment Planning

Strategic planning for property development and expansion is essential for sustained growth. Experienced commercial property management professionals forecast market trends and tenant needs, ensuring properties remain profitable and competitive over the long term.

3. Cost Efficiency and Financial Savings

3.1 Vendor Negotiations

Experienced commercial property management professionals excel in vendor negotiations, securing favorable contracts that reduce operating costs. By leveraging relationships and securing competitive bids, they optimize expenses and improve property profitability.

3.2 Economies of Scale

Managing multiple properties allows for economies of scale, reducing operational costs through bulk purchasing and shared services. This efficiency results in lower overhead and improved service delivery to tenants.

3.3 Energy Efficiency Initiatives

Energy-saving measures, such as installing LED lighting or optimizing HVAC systems, lower utility costs and promote sustainability. These initiatives also attract environmentally conscious tenants and may qualify for tax incentives, further enhancing savings.

3.4 Budgeting and Forecasting

Developing accurate budgets and financial forecasts ensures resources are allocated effectively. By analyzing market trends and historical data, commercial property management professionals can anticipate future needs and prepare for financial challenges.

3.5 Tax Optimization Strategies

Experienced managers are skilled in tax optimization, identifying deductions and credits that minimize tax liabilities. These strategies help improve cash flow and overall profitability, further maximizing the property’s returns.

4. Legal Compliance and Risk Management

4.1 Knowledge of Regulations

Ensuring compliance with local, state, and federal laws is a cornerstone of risk management. Experienced commercial property management professionals are well-versed in relevant regulations, ensuring properties avoid penalties and maintain legal integrity.

4.2 Lease and Contract Management

Proper lease management protects both property owners and tenants. Experienced managers create comprehensive, clear lease agreements that minimize misunderstandings and safeguard property interests.

4.3 Insurance Management

Insurance is a key part of risk management. Experienced managers assess property risks and work with insurers to secure the right coverage, ensuring the property is protected from potential losses or liabilities.

4.4 Emergency Preparedness

Emergency preparedness is essential for managing unforeseen events. Experienced managers develop contingency plans, conduct drills, and maintain systems to ensure tenant safety and minimize property disruption during emergencies.

4.5 Secure Record Keeping

Accurate record-keeping is crucial for operational efficiency and legal compliance. Experienced property managers implement secure systems to organize financial, lease, and tenant records, ensuring easy access and protecting sensitive information.

5. General Property Management Expertise

5.1 Property Inspections and Oversight

Routine property inspections are essential to ensure that everything is running smoothly. Experienced commercial property management professionals conduct regular checks on the property’s condition, identifying areas that may need repairs or attention. By keeping up with maintenance needs, property managers help avoid costly emergency repairs and keep the property in top condition.

5.2 Handling Tenant Relations

Effective tenant relations are crucial to ensuring high occupancy rates. Managers with experience understand the dynamics of building long-term relationships with tenants. They offer clear communication, prompt attention to concerns, and professional handling of lease agreements, all of which lead to positive tenant experiences and low turnover.

5.3 Budgeting and Financial Oversight

Experienced managers develop detailed budgets, ensuring funds are allocated efficiently across maintenance, repairs, and services. They track expenditures, identify areas for cost savings, and ensure that the property remains financially stable. This oversight ensures that property owners do not overspend, while still maintaining high service standards for tenants.

5.4 Adaptation to Market Trends

The real estate market is constantly changing. Experienced commercial property managers are adept at adapting to these changes, whether they involve shifts in demand, tenant needs, or economic conditions. They adjust rental rates, property features, and marketing strategies to maintain competitive edge and profitability in evolving markets.

5.5 Enhancing Property Value

Through strategic improvements, upgrades, and well-maintained infrastructure, experienced managers work to enhance property value. Whether through adding desirable amenities or renovating common areas, they understand how to make the property more attractive to potential tenants, which in turn increases its market value and rental income potential.

6. Marketing and Branding Expertise

6.1 Positioning the Property

Strategic branding enhances property appeal and tenant retention. Experienced commercial property management professionals develop marketing plans that highlight the property’s unique features and target the right tenant demographics, setting it apart from competitors.

6.2 Digital Marketing Strategies

Digital marketing is essential for property visibility. Managers leverage online platforms to reach a broader audience, using engaging content and ads to attract prospective tenants and boost occupancy rates.

6.3 Networking and Partnerships

Networking with industry professionals and forming partnerships opens new opportunities. Experienced managers build relationships that help attract new tenants, optimize property services, and expand their market reach.

Experienced commercial property management offers numerous benefits, from enhancing tenant satisfaction to implementing sustainability initiatives. Skilled managers provide expertise in financial optimization, risk management, legal compliance, and marketing, ensuring long-term property success. Their ability to enhance property value, reduce costs, and attract quality tenants makes them an invaluable asset to property owners.

Engaging seasoned commercial property management professionals is a smart investment that maximizes the potential of real estate assets in a competitive market. Looking for commercial property management ? Contact Realty Management Partners LLC.

The Benefits of Expert Condominium Management for a Thriving Community

websites@hibu.com (Hibu Websites) — Tue, 07 Oct 2025 22:21:00 GMT

Condominium management is a specialized field that plays a critical role in maintaining and enhancing the living experience for residents while protecting property investments. Professional condominium management ensures that operations run smoothly, financial stability is maintained, and a sense of community flourishes. As the real estate and rental market grows increasingly complex, expert management has become indispensable for preserving property value and resident satisfaction. According to B2B Reviews, there are 19,341,000 rental properties in 2024, highlighting the growing demand for skilled management to maintain high-quality communities. With such a vast number of rental properties, the role of professional condominium management has never been more crucial in ensuring that these communities remain well-maintained, financially sound, and enjoyable places to live.

For unit owners and condominium associations, understanding the benefits of professional management is essential. From boosting property value to fostering resident engagement, expert management creates a framework that ensures the community thrives. The following sections explore the key ways condominium management adds value to properties and enhances the overall residential experience.

Enhancing Property Value

Expert condominium management directly contributes to preserving and increasing property values over time. One key aspect is proactive maintenance. Regular inspections, repairs, and upgrades prevent wear and tear, ensuring that both individual units and shared spaces remain in top condition. Properties that are consistently well-maintained attract higher-quality tenants and potential buyers, making them more competitive in the real estate market.

Financial planning is another critical element of property value enhancement. By carefully managing budgets, allocating funds for necessary upgrades, and maintaining a well-funded reserve, management ensures that resources are available for both routine maintenance and unexpected expenses. A strong financial plan protects property value and instills confidence in residents and investors alike.

Strategic marketing and leasing further boost property value. Expert managers promote the property’s amenities, lifestyle benefits, and unique selling points to attract tenants or buyers who are willing to pay premium rates. Highlighting features like energy-efficient systems, modern communal areas, or pet-friendly policies can differentiate a property in a competitive market. Over time, these marketing strategies enhance occupancy rates, reputation, and overall property value.

Improving Resident Satisfaction

Resident satisfaction is at the heart of effective condominium management. Timely responses to complaints, maintenance requests, or inquiries create a positive living experience. When residents see that management addresses their concerns efficiently, trust is built, and community cohesion is strengthened. Satisfied residents are more likely to remain long-term, reducing turnover and contributing to a stable, harmonious community.

Community engagement plays a pivotal role in resident satisfaction. Organizing events, recreational activities, and social gatherings encourages residents to interact, form friendships, and feel connected to the community. Such initiatives foster a welcoming environment, helping residents feel that their home is more than just a place to live—it’s a vibrant community they are proud to be part of.

Transparent communication is equally important. Providing residents with easy access to information about policy updates, maintenance schedules, or community initiatives ensures they feel informed and empowered. Feedback channels allow residents to voice concerns and suggestions, promoting collaboration and mutual respect. Expert condominium management prioritizes clear communication, building stronger relationships between management and residents, and enhancing overall satisfaction.

Streamlining Administrative Operations

Efficient administration is essential for smooth condominium operations. Expert managers maintain organized records of finances, maintenance schedules, resident correspondence, and legal documents. Comprehensive documentation allows for informed decision-making, ensures compliance with regulations, and reduces the risk of oversight. Residents benefit from a well-run administration that anticipates and resolves issues efficiently.

Technology integration is a key tool for streamlining operations. Digital communication platforms, online payment portals, and smart access systems reduce manual workloads, improve accuracy, and enhance convenience for residents. Technology not only simplifies day-to-day management but also fosters transparency and accountability, ensuring that residents can interact with management easily and efficiently.

Expert management also ensures that legal and compliance responsibilities are handled proactively. Keeping up with changing regulations, reviewing contracts regularly, and ensuring insurance coverage is adequate reduces risk for both residents and property owners. By managing legal obligations effectively, condominium management protects the community from potential disputes, fines, or liabilities.

Financial Management and Stability

Strong financial management is critical for sustaining a condominium community. Expert managers prepare budgets that prioritize essential expenditures while maximizing available resources. By monitoring financial performance, management can identify trends, adjust allocations, and maintain fiscal health. This disciplined approach ensures that funds are available for both regular operations and long-term improvements.

Maintaining a reserve fund is an important aspect of financial stability. A well-funded reserve enables the community to handle emergency repairs without disrupting the budget for regular maintenance. This financial foresight reassures residents and owners that the community is prepared for unexpected events, enhancing trust and long-term stability.

Cost-effective procurement and vendor management also strengthen financial health. Expert managers leverage industry connections to negotiate competitive pricing, ensuring high-quality services and products are obtained efficiently. Strategic purchasing decisions reduce unnecessary expenditures and free up resources for value-enhancing initiatives, ultimately contributing to a financially secure and sustainable community.

Risk Management and Liability Reduction

Safety and risk management are fundamental to protecting residents and property. Regular inspections allow management to identify potential hazards before they escalate. From structural safety to fire prevention and emergency systems, proactive measures reduce the likelihood of accidents and liabilities, creating a secure living environment.

Crisis management planning further ensures community preparedness. Detailed plans for emergencies such as natural disasters, security threats, or health crises outline clear procedures and responsibilities for both management and residents. Drills and simulations familiarize everyone with protocols, minimizing confusion and enhancing safety during actual events.

Insurance management is another vital responsibility of expert condominium management. Regular reviews ensure that coverage is sufficient, up-to-date, and aligned with industry standards. Adequate insurance protects both the condominium association and individual owners from financial losses due to accidents, natural disasters, or liability claims. Proper coverage also allows the community to recover quickly and maintain stability in the face of unforeseen challenges.

Enhancing Community Living Experience

Designing and maintaining inviting common spaces significantly enhances residents’ daily lives. Thoughtful design encourages social interaction, recreational activities, and relaxation. Shared spaces such as fitness centers, lounges, outdoor patios, or rooftop terraces provide opportunities for community engagement and foster a sense of belonging. These environments make the condominium more attractive to both current and prospective residents.

Promoting sustainable living practices demonstrates a commitment to environmental responsibility. Expert management can implement recycling programs, energy-efficient systems, and green building initiatives, reducing the community’s ecological footprint. These practices not only contribute to environmental stewardship but also lower operating costs, improve residents’ quality of life, and make the property appealing to environmentally conscious tenants.

Supporting homeowners’ associations (HOAs) is also essential. Managers collaborate closely with HOAs to address resident concerns, plan community improvements, and implement policies effectively. By facilitating structured governance and encouraging participation, management strengthens the HOA’s ability to represent residents’ interests, creating a cohesive and engaged community.

Expert condominium management is integral to building harmonious, financially stable, and high-value residential communities. By focusing on property maintenance, resident satisfaction, administrative efficiency, financial stability, risk mitigation, and community engagement, professional management ensures long-term success for both residents and property owners.

Whether you are a unit owner, investor, or HOA board member, partnering with an experienced condominium management team protects your investment, enhances resident satisfaction, and creates a vibrant, sustainable living environment. Don’t leave the value of your property or the happiness of your residents to chance. Contact Realty Management Partners LLC today to ensure your community thrives for years to come.

How Effective Property Management Can Maximize Your Rental Income

websites@hibu.com (Hibu Websites) — Wed, 25 Jun 2025 13:27:00 GMT

Maximizing rental income is a top priority for property owners looking to get the most out of their investments. One of the most impactful ways to achieve this is through effective property management. According to RubyHome, just over half of rental property owners—51%—typically hire a property manager to oversee their rental operations. This trend reflects the value that professional management brings in boosting income and maintaining the long-term success of rental properties.

Understanding the Benefits of Professional Property Management

Professional property management plays a crucial role in increasing rental income by minimizing vacancy rates and improving tenant retention. Experienced managers use targeted marketing strategies to attract qualified tenants quickly, reducing the time a property sits empty. Moreover, thorough tenant screenings help ensure renters pay on time and take good care of the property, leading to fewer costly turnovers. These efforts combined help maintain a consistent cash flow and reduce income interruptions for property owners.

Implementing Strategic Maintenance and Repairs

Another key aspect of maximizing rental income is timely maintenance and repairs. Property managers coordinate and oversee routine upkeep, addressing issues before they escalate into expensive problems. Well-maintained properties attract higher-quality tenants who are often willing to pay premium rents for a safe and comfortable living environment. Regular maintenance also preserves the property’s value, protecting owners’ investments over time. Effective property management means these tasks are handled promptly and efficiently, saving owners time and unexpected expenses.

Optimizing Rent Pricing and Lease Agreements

Setting the right rent price is essential for maximizing income without driving away tenants. Property managers analyze local market trends and comparable properties to determine competitive rental rates that maximize revenue potential. They also manage lease agreements, handling rent increases and renewals in a way that balances owner income goals with tenant satisfaction. This proactive approach ensures a steady stream of rental income while reducing turnover.

Effective property management offers rental property owners a strategic advantage in maximizing income. Through skilled tenant management, proactive maintenance, and smart pricing strategies, property managers help owners maintain steady, reliable revenue. As the industry data shows, property management continues to be a valuable resource for more than half of rental owners seeking financial success. To maximize your rental income with proven property management strategies, contact Realty Management Partners LLC today. Let us help you turn your rental property into a steady source of income.

3 Benefits Property Management Services Offer

websites@hibu.com (Hibu Websites) — Mon, 10 Feb 2025 13:35:00 GMT

In today's dynamic real estate market, property management services are an indispensable resource for property owners and investors. Whether you own a single rental property or a vast portfolio, managing properties effectively is a time-consuming task that requires expertise and precision. Property management companies play an essential role in bridging the gap between landlords and tenants, ensuring a seamless experience for both parties. Their services not only alleviate the burden of management but also enhance the profitability and efficiency of property investments.

1. Tenant Screening for Reliable Occupants

One of the primary benefits property management services offer is tenant screening. Selecting the right tenant is crucial to maintaining a steady income stream and minimizing property damage risk. Engaging a management company enables access to sophisticated screening processes, checking credit scores, employment history, and past rental experiences to ensure reliable tenant placement. This comprehensive evaluation helps in securing tenants who are more likely to be punctual with payments and respectful of property regulations, thereby safeguarding your investment.

2. Rent Collection and Financial Management

Another significant advantage is the stress-free rent collection and financial management these services provide. Property management companies implement efficient rent collection systems, minimizing late payments and securing consistent cash flow. They also offer detailed financial reporting and analysis, keeping property owners informed about income and expenses. According to Globe Newswire, the global property management market size is expected to reach $23.63 billion by 2026, underlining the increasing reliance on professional management services to optimize rental operations and financial logistics.

3. Property Maintenance and Legal Compliance

Additionally, property management services enhance property maintenance and legal compliance. They coordinate regular inspections and prompt repairs, ensuring properties are well-maintained and tenants remain satisfied. These companies provide expertise in navigating complex legal landscapes, helping landlords adhere to housing regulations, zoning laws, and safety standards. By doing so, property management firms mitigate legal risks, avoid costly penalties, and ensure properties remain in optimal condition.

In conclusion, property management services offer an array of benefits that enhance the overall management experience for property owners. From efficient tenant placement and stress-free financial management to diligent maintenance and compliance, these services streamline every aspect of property ownership. As the property management market continues to grow, investing in professional management services is a strategic decision that can improve profitability, reduce stress, and maximize the potential of real estate investments. Call us at New Star Properties today!

Managing Increases Recommended from the Reserve Study

websites@hibu.com (Hibu Websites) — Mon, 30 Sep 2024 14:34:00 GMT

First, the good news! The fact that your community now has a new or updated study shows that a fundamental condo management task has been completed. The Board and community now have “eyes wide open” as to what the community is likely facing as plans are made to address capital replacement items such as roofs, streets, septic systems and the like.

If this is your first Reserve Study in years or, perhaps, ever, there is a good chance the Board and community will experience “sticker shock” from the funding recommendations of the engineering firm. If you’re a Board Member contemplating the implications of having to raise the reserve contribution per unit by a significant margin (say $100/month) take a moment to understand the alternatives. Rightfully, any big move in the community’s Reserve Contribution is going to have a big effect on unit owner dues and the Board should work to fully understand the drivers behind the increase in reserve contribution and be reasonably comfortable answering questions when asked. Ideally, your management team is solidly behind the Board in understanding the recommendations and discussing various options.

Before going too far, it’s important to understand the basic concepts associated with developing the Reserve Recommendations. First, the engineering team catalogues your community’s capital assets and follows up with estimates of Useful Life, Remaining Life, Replacement Cost and projected funding. Keep in mind that funding levels are typically referenced as a % of Full Funding (100%). Although 100% funding is a benchmark, few communities target full funding; mainly, because it’s typically not necessary and such a high funding level sets aside funds that will essentially be unused. Not that 100% is a “bad thing” but it puts unnecessary strain on homeowners who can put the excess funds to better use.

On the other end of the funding strategy spectrum is a deficit forecast or any kind of funding plan that reflects less than 40% of full funding. Often, a community getting their first Reserve Study will see that if they continue with their current funding rate, forecast capital expenses will drain reserves and push the community into a funding crises somewhere in the future. While “Current Funding” scenarios often show a deficit for a first time analysis, your study should compute the percent funding resulting at year end for each of the 30-40 years covered in the study. Industry consensus indicates that anytime your community funding results in anything less than 25-40% funding, there is a real risk of unexpected or larger than expected expenses pushing Boards to consider a Special Assessment, loans or perhaps deferring maintenance. None of these outcomes are desirable.

Recognizing that any funding strategy less than 25-40% (of full funding) really is not a viable option for the community; the Board is still stuck with developing a strategy to builds the community to health. So, what are the options?

“Rip the Band-Aid off”

If the Reserve Study is recommending a jump in the community’s reserve contribution and those contributions will extend for years (often adjusted by projected inflation rates), some Boards accept the move in one year. It is not unusual that a Board may look at Reserve recommendations and recognize the hike needed is not good news; but waiting only makes the gap worse with the eventuality of having to raise the funds in any case.

In this scenario, the Board is very transparent with the community; reviewing the hard data from the Reserve Study and incorporates the full, recommended adjustment in the next budget cycle. In almost every case, there will be unit owners talking about “other expenses” such as taxes and other normal costs of living as a rationale for not moving the recommended number. However, at the end of the day, funding capital reserves for the eventual replacement of big ticket items is similar to someone driving their car and being notified that the brakes should be replaced. While funds may be tight, the car’s brakes are indifferent to the owner’s personal finances. Likewise, when roofs need replacement the structure is indifferent to the unit owner, or the community’s financial position. At some point, it must be done.

Not infrequently, Boards wrestle with unit owners that express a total inability to meet the financial requirements of reserves. While this puts the Board in a tough position, the hard reality is that the Board has to make judgements in the best interest of the association. Funding the replacement needs of the community should not be established based on the “ability to pay”. As noted, like the car that requires brakes; the funding for association capital replacements must be met. On occasion, the hard result here is that some members of the community may determine that another living situation more suited to their budget may be necessary.

Phased Scale Up

While the “Rip the Band-Aid Off” approach is a common Board strategy, some Boards may look to “thread the needle” by phasing dues increases and moving the community toward a stable position; but over a couple years or so. One helpful illustration is a community that had a loan becoming fully paid off in 2 years. Without a major capital demands expected over the next couple years, the Board did boost the community’s reserve contribution about half way to the recommended, minimal level with the plan that the balance of “catch up” increase would be made once the loan was fully paid off (in 2 years). When the loan was paid, the previous debt service monies would be redirected to reserves.

In any kind of “Phased Scale Up” Boards will want to compare your Reserve Study’s recommended end of year target reserve balance. At some point in the phased scale up (ideally within 2-4 years), your year end contributions will tie to the target year end numbers of the Reserve Study and your community will then be “on-track”.

Obviously, there are variations on this strategy. It was very convenient for the Board illustration above to scale their payments just as their loan was about completed. The funds previously dedicated to debt service simply divert to Reserves in a transparent move to the community that also brought the association to financial health. Other scenarios can include going “part way” toward the recommended annual funding recommendation and then increasing the following year for the balance. However, when a Board pursues this strategy, they still need to backfill the opportunity they forfeit in Year 1 with higher increases in subsequent years; or simply settle for a lower percent funding with greater exposure risk to special assessments or other potential financial crises.

Scale Up Coupled with a Special Assessment

In some cases, the clock simply runs out on an established community. Perhaps no reserve study has ever been done or the management team never understood how to utilize the data and support board planning. For whatever reason, an established community now finds itself with a new Reserve Study recommending a significant increase in addition to immediately necessary replacements that cannot wait for a funding build up.

While this scenario is exactly the reason that thoughtful, realistic, and data driven planning should be managed years in advance, the reality is that some communities flatly missed the opportunity and, now, must contend with urgent financial demands and recovery.

In unusual cases like this, a Board may adopt the recommended annual reserve contribution as well as an injection of cash through Special Assessment.

In one older community we now manage there was essentially nothing in Reserves. The new Board realized they needed to take the hard medicine of significant dues increases, most of which was directed to Reserves. In addition, to address pressing roof replacement issues, the Board engaged a Special Assessment for each of two sequential years. While the Reserve contributions would be building towards stability over the long term, the infusion of cash through special assessment covered the immediate need for roofs .

Reserve Planning is not for the faint of heart. It requires data, understanding, problem solving and great communication skills. As this discussion concludes, I will note first that having a current Reserve Study is half the battle. You now have “eyes wide open”. You have data that is intelligible from which to understand your community’s position. From here, you explore your options. The decisions aren’t easy; but, with transparency and excellent communication throughout the budget and planning process, your solution will be understood by the majority of the community. Choosing wisely, future Boards and unit owners will be grateful for your proactive planning that protects the wellbeing of the association.

About the Author

Tim Wege is President of New Star Properties, launching the company with zero clients or staff in 2015. With a background in real estate, corporate finance and management, the company opened with a vision trained on excellence. Today, New Star manages over 3500 condominium units with a staff of more than 30.

The Anatomy of a Parking Lot Capital Replacement Project; A Case Study in Reserve Planning & Project Management

websites@hibu.com (Hibu Websites) — Mon, 03 Jun 2024 17:39:00 GMT

Reserve planning and project management are critical components of association management. While community planning for long term capital replacement projects is critical, this effort is frequently overlooked as some Boards may not be familiar with the process and their management teams may either not have the expertise or the commitment to work through the various challenges associated with evaluating reserves and assisting Boards with numbers and long term planning.

The story below sets the context for one community’s history related to association reserve funding followed by the work involved to make sure a major capital project, a parking lot replacement, was fully scoped out with an effective bid management plan and, ultimately, the installation of a new parking lot that should meet the needs of the community for a couple decades, or more, to come.

The Context – A Financially Stressed Community 6 Years Ago

New Star’s familiarity with this community began in 2018 when the Board replaced a long established management team. Our team began management operations about August of that year. However, the budgeting and financial management upon are arrival was a train wreck. The reserve account was fully drained. The operating budget was running on fumes. By October of that year our office had to assemble a recovery budget for operations for approval and January implementation.

While dues were adjusted to realistic operating levels, three investor members (a majority) of the Board turned down a Reserve Study recommendation to raise an additional $148,000 over two years. The Reserve Engineer recommended the immediate boost to Reserves as the balance was zero in January and the community had an extensive list of deferred maintenance items with big ticket items, such as three large parking lots, needing replacement.

Although the community was solvent again in terms of day-to-day expenses (Operating Budget), the decision to continue to short reserves would end up delaying major replacement projects as well push the funding decision further down the road. Although the reserve study recommended asphalt replacement within a couple years, funding caused the community to deal with potholes and the failing parking lot until 2024.

The Parking Lot Project

Starting about February of 2024, four proposals were received to remove the old, broken up asphalt, curbing and sidewalks. Interesting enough all 4 proposals came from companies the New Star team had experience and all 4 bids were within a few thousand of each other. The scope of work was tight and with 4 proposals coming so close to each other, the Board was satisfied they were pursuing the right project that was priced at the right value. A selection was made for the winning vendor. With the notification to the winning vendor, New Star called another on-site meeting with the vendor to walk through the project and develop a clear demo and rebuild plan.

This plan broke the large project down into phases. For example, on Day 1, the sidewalks and curbing were removed. Day 2 involved the removal of the parking lot and regrading and compacting surface preparation. Each day had specific instructions for the community pertaining to car movements and when cars had to be totally out of the lot and when they could return at the end of the day. Each day, New Star property management was on site to assess project pace, measure blacktop thickness and work through changes that became apparent as the project continued. With consistent inspection and communication with the vendor as well as updates to the community, the project finished perfectly on time and meeting Board expectations.

Post Project – Next Steps for the Asphalt Lot

Regarding the parking lot replacement project, the new lot is beautiful and fully striped. While the immediate project was a clear success for the community, the Board has been reminded that after a year the fresh asphalt will need to be seal coated and re-striped. Although the new lot is solid, the materials are still “curing” and will continue to cure for the next year.

Once the new lot has been in place for a year, sealcoating is recommended to protect the new lot from ultraviolet rays (UV). Often, there is confusion on the merits of seal coating with some suggesting sealcoating is valuable only for cosmetic reasons. It looks nice! Although fresh sealcoat does look good, the mechanical reason for coating is protection from the sun excessively “drying” out the oils in the asphalt. If left unattended and unsealed, the new lot will age faster as the oils evaporate, the asphalt “dries out” and will eventually become brittle. Brittleness will lead to cracking and eventually pot holes. Typically, sealcoating will need to be reapplied every 5 years or so. As cracking will eventually emerge as the lot ages, the Board will have to be vigilant to keep these cracks filled about every 3 years. Crack filling, combined with sealcoating, will extend the useable life of a very important and expensive capital asset.

More to do – Reserve Planning (again!)

With zero in Reserves back in 2018, the community has been building reserves since. However, you may recall from the background to this case that the recommendation to jump start the reserve fund with $148,000 infusion early on was rejected by board members working on behalf of their investor clients. The investors eventually sold their position with resident unit owners now comprising the Board. Although budget planning really doesn’t begin until about September 2024, Board discussions are already under way to look at various funding options to bring reserves to targeted levels.

Not isolated to this particular case study, numerous communities find over time that poor consideration for reserve funding is now showing itself with significant deferred maintenance and an increasingly pressing challenge of revitalizing reserves and addressing capital assets now in need of replacement. As daunting as the task can be, New Star is no stranger to collaborating with Boards to help sort out funding needs and options and transparently communicating to communities in a way that garners broad based support for tough choices upon which the community is dependent.

Tim Wege is President and Founder of New Star Properties. With an MBA with a concentration in Finance, Tim held several management positions with a global chemical company. In 2015, Tim launched New Star with zero clients and zero staff. Today, the New Star team serves over 2500 units in condominiums, HOA’s, multifamily and commercial property management.

Make or Break? Property Management is the Key to Investment Return

websites@hibu.com (Hibu Websites) — Thu, 16 May 2024 14:09:00 GMT

Make or Break? Property Management is the Key to Investment Return

So, you have searched extensively for an investment deal that makes sense. You sifted through dozens, perhaps hundreds, of listings. You’ve made the deal and have added a new investment to your portfolio. How your investment delivers; now, will depend on how the property is managed. If management is treated casually, disappointment will likely follow, often in short order. When a careful eye is applied to the many moving parts of real estate management, various operational “levers” can be utilized to produce optimal cash flow and appreciation.

In a lot of cases, the brand new investor may attempt to self manage the new acquisition. While there will be a learning curve, a demand on time as the new investor begins to assemble the basic skills, tools and processes; the experience may be helpful as the new investor begins to understand the complexities of management and how critical good management is to the overall objectives. As time develops, though, there is a realization that either the time demands do not reflect the best use of the investor’s time; or the breadth of skills and capacity is insufficient for long term delivery.

Big Picture

The most successful properties are acquired with a vision of levers that can be pulled that enhance value and cash flow. For example, on an older property with years of deferred maintenance, legacy tenants paying below market rents, one opportunity may be to go through and renovate units. As units are renovated, rents can move to market and tenant quality likely improves. Over time, renovated units tend to consume fewer maintenance visits, tenants are often more satisfied, renewals happen more often and re-leasing and turnaround costs remain low. In classic “real estate talk”, the investor has “added value” and will be rewarded for doing so.

Alternately, is there an opportunity to look at the existing structures and property, perhaps adding other units? Our office recently had an investor that acquired two 6 family units that also had an oversized garage in the back lot. The investor renovated the existing units and converted the garage to a duplex, adding additional revenue from previously unproductive space.

Seeing opportunity to change the status quo; more units, better units, and improved tenant quality all of these are big picture opportunities that can transform mediocre returns to incentives that cause the investor to look for the next acquisition. Ideally, of course, the investor can see these opportunities prior to acquisition. This vision allows for competitive bids in a hot market as well as allows for adequate operations planning upon acquisition.

Tenant Management

Over all, good property management recognizes that good, consistently paying tenants are essential to the achievement of business objectives. Effective property management begins with plans to make tenants happy. Does the property appearance and functionality set the stage necessary to attract and maintain good tenants? Good tenants appreciate a good home and quality of living and understand that rent increases are necessary for maintaining quality of living.

Revenue Management

You have the investment property, you have tenants. Where the rubber meets the road is in revenue management. At a high level, good property management will look at current rents compared to market rates. Is the unit at market? If not, why not? More importantly, what will it take to bring the unit to market levels? Will the unit require extensive renovation? Will the current tenant leave if rent is bumped to market. What is the calculated result of these interactions? While property managers can do the math, the good manager will review with ownership the risks and rewards of driving to market rents.

While the goal is always retaining good tenants at market rates, good property management carefully monitors collections. When the rent is due, are there any delinquencies? Is there a meaningful late fee in place. If there is a “grace period”, are tenants immediately notified of the late fee and requesting immediate payment? Is there a protocol that elevates the urgency of past due payments to notices for eviction? When collection issues arise, it’s better to discover sooner than later and act in an equally timely manner.

Expense Management

Tenant and revenue management is part of the successful real estate investment return. Another piece of the delivery is the management of expenses. Depending on the property, there are always judgement calls on repair/replace or upgrade? Is adequate consideration given to the application of preventative maintenance that extends equipment life? Or, are the equipment “nuts and bolts” overlooked or “band aided”, hoping that a potentially imminent failure will delay by good fortune? Is property insurance shopped periodically? Is there an opportunity to have tenants pick up utility costs…and how much might that conversion run?

Conclusion

Real estate investment is most easily summarized in a two-pronged approach. First, due diligence is required to buy the right investments at the right price. Ideally, the investor can see opportunities where others overlook. In a tight real estate environment as we have today, lots of properties are available at “non-starter” pricing. So, the well known caution is “buy it right”.

With the investment in hand, the final prong is the day-to-day management. If you purchase with an eye to self management, do you have the time to invest in all the moving parts that will make a difference in success or failure? Do you have the background and skill?

Likewise, if you’re using a 3 ^rd party management team, are you assured that they are asking the questions and digging for opportunities that can convert to real ROI numbers?

Tim Wege

Principal Broker – New Star Properties; Tim has been an investor for over 30 years and is the founder of New Star. New Star currently manages multifamily, condominium and commercial property.

Condominium Finance Challenges: Dealing with Aging Capital Assets with Insufficient Reserve Funds

websites@hibu.com (Hibu Websites) — Thu, 16 May 2024 14:09:00 GMT

Condominium Finance Challenges: Dealing with Aging Capital Assets with Insufficient Reserve Funds

Since condominium ownership started getting popular as early as the 1970’s, management companies emerged to handle the mechanical details associated with providing desired services to homeowner communities. As condo form of ownership was just gaining momentum and management companies started to respond to this new market, the emerging template from both condo boards as well as management companies focused on “keeping costs down”, keep any dues increase at bay, low, low dues was often the mantra of the day.

Spin this initial paradigm forward to today and older communities find that the major capital assets, such as roofs, parking lots, boilers and water systems are nearing the end of their useful life. When boards start to look for replacement funds, the reality of starving reserve fund monies becomes clear. There are insufficient funds for major replacements. Worse still, with communities now approaching 30 years old, multiple systems have all aged at the same time. The parking lots needs major work. The front step entries are sagging or rotting. Boilers are band-aided. The community is now facing multiple projects with clearly insufficient funds. What are the options for addressing these major projects when funds have not been adequately set aside?

First, there is always a path forward. Collaborating with your management team, various options are available. The initial step is recognizing the pending challenge to the association and understanding that aggressive action will likely be necessary to prioritize projects, secure funding and make necessary replacement before catastrophic failure results. Waiting for roofing, septic, or boiler systems to fail and then addressing under emergency conditions is worse than allowing the association to age without adequate attention to reserve funding sustainability.

Funding options for condo or homeowner association communities include dues increases, special assessments, and loan options. These funding techniques integrated with a clear understanding of capital replacement priorities and timing will allow a community to address the pressing needs associated with big ticket equipment and component replacements.

Before selecting a funding strategy, boards need to first understand the scope of what is required over the next several years. Ideally, a well managed community will have a recent (Within 4-5 years) 3 ^rd party engineering reserve study that has projected replacement schedules and approximate costs for major assets. This reserve study typically outlines “end of year” target reserve balances necessary to fund projected capital replacements. How far off is the community from projects that will be emerging over the next couple years? Quantifying the immediate-to-3 year requirements will scope out the funding gaps. Major projects that are immediate (within 12 months or so) should be scoped and bid by your management team. This exercise not only validates costs that may have only been estimated in the Reserve Study, but this sets the table for the Board to begin vendor evaluations and scheduling installations.

With the dollar size identified, the Board begins to look at their funding options. It is not uncommon that communities that have notoriously underfunded their reserves and skimped on routine maintenance over the years are reluctant to significantly step up dues. While previous boards and management companies failed to make provision for capital replacement, the board facing immediate challenges will also likely face some push back from community members that are comfortable with the dues of the past and reluctant to make the significant jump that may be necessary. With this challenge facing the board, getting loan funding may appear the easy way out. The board can relatively easily get loan funding today and pay it off slowly anywhere from 5 to 20 years. Despite the fact that funding should have been provided in reserves, the classic fallacy argument is that it’s OK to fund long term assets with long term debt.

While loan funding may seem to be the “lowest pain” option and there is a “good sounding” rationalization for the loan, the pain will become much more apparent in the next budget year and the years following as a significant percentage of the association’s dues are effectively committed, or spent, before the year even begins. Our office routinely sees communities that have anywhere from 10% to 1/3 of their total dues collections dedicated to debt service. As inflation drives costs as well as the endemic increase in maintenance as facilities age, the decision to finance with a loan become much more painful years after the initial problem was solved with the relatively easy loan. In sum, loans are consider as a “last resort”. They have lasting impact for years and absorb community funds long after the replacement.

The “textbook” solution to a funds shortfall is either increasing dues or implementing a “Special Assessment”. Keep in mind that regular dues should be taking care of the normal operating requirements of the association, including keeping up with the recommended reserve contribution (by the Reserve Study). If reserve funds are so thin that extra funding is considered necessary, likely a significant dues increase is warranted. Likely, this increase in dues will not roll back as the community is playing “catch up”. While a dues increase is warranted, Boards may look at making significant incremental moves over a couple years to help the community adjust. This incremental option needs to be carefully managed. The community needs to be advised that a significant increase for the next budget year will likely be followed by another the year after. Being clear and candid with the community is essential to good management, even when there is “bad news” to report.

In some cases, problems have festered so long and become so costly that a significant increase in dues will not be a sufficient, stand alone, funding solution. Before a loan option is considered, Boards should review the prospect of a “Special Assessment”. This is typically, a one-time assessment to cover a specifically identified replacement demand. Again, the best funding solution comes from reserves that have been systematically accumulated over the years. However, the next best solution will be the Special Assessment. As painful as a special assessment may be, the pain is “over” once the assessment is paid. Unlike a loan that continues to absorb community resources for years, the pain is typically a one-time event. When a special assessment is applied, Board should be motivated to closely look at their reserve funding plans and commit to a strategy which will avoid the hard choices that may include a special assessment or loans in the future.

The goal of all communities should be to adequately maintain the facilities and grounds of the association, including long term replacements. Recognizing that boards often inherit the problems that were “kicked down the road” by earlier boards, it is still the best policy to make clear headed analyses of requirements followed by disciplined funding decisions. Once all of this is put together, engage your management team to articulate to the community what is driving the numbers. A clear presentation to the community will typically result in your neighbors drawing similar conclusions that have been reached by the Board. No one likes dues’ increases or bad news; but managing forward and addressing the root causes for underfunding is the best medicine for a community that finds itself facing serious capital replacement shortfalls.

About the Author – Tim Wege

Tim is the President of New Star Properties LLC. He began his career in corporate financial planning and analysis with a major chemical company in the mid –‘80’s. His career later moved from finance to product and market management, sales and sales management. Tim launched New Star Properties in 2015 with zero clients. Today, the firm manages over 3500 condominium units as well as multifamily and commercial properties. Known for its attention to budgeting and financial problem solving, New Star is among the fastest growing management companies in New Hampshire while experiencing some of the highest client retention in the industry.

For more information, contact Tim.Wege@NewStarPropertiesNH.com.

Bid & Maintenance Management Ensuring Maximum Delivery at Greatest Value

websites@hibu.com (Hibu Websites) — Thu, 16 May 2024 14:09:00 GMT

Bid & Maintenance Management Ensuring Maximum Delivery at Greatest Value

Condominium associations often struggle with their management teams on the right balance between bidding significant projects and the business strategy of a management company to self-perform not only routine maintenance, but significant construction and capital replacement projects. While Boards are “promised” fair pricing and good value, without the “arm’s length” specification and Request for Proposal (RFP) process how does any community really know they’re getting best value for their condo dues investment?

Although practices will vary from community to community, our office routinely advises that maintenance and capital replacement projects north of $5,000 should be competitively bid. Management teams should do just that…manage of delivering maximum value to their clients. While it often makes sense to have property management teams address maintenance projects that are quick and can be accomplished within a couple days; the pressure Boards may experience from some managers that want to use “their own” construction division raises questions on transparency and the validation of competitive bids. At another level, as management contracts typically include indemnity clauses that significantly limit recourse of the Association for management errors and quality failures, how do you deal with quality and even warranties?

In a community that recently joined the New Star portfolio, one of their buildings requires substantial work which was provided by the management provider’s “construction” or “special services” division. This project was valued in excess of $80,000 and there were no notes indicating the project ever went out for bid. Here we are $80,000 later, with leak paths into the building from the former management construction team and little recourse going forward.

In contrast, we hear from communities that their management team does “bids out” projects. However, management collects the bids and, “miraculously” the management team seems to always turn in the “winning bid”. In our world, here at New Star, if we bid on a project for our client,; we request all RFP’s (including ours) go to an identified Board Member. That way New Star bids are created without the review of incoming proposals from other potential suppliers.

Our recommendation to Boards is to follow your instinct. Significant projects should be bid by RFP. Except for very unusual situations, having your management team engage on significant projects invites complications that often start with the real question of value delivery. If the Board is not requiring competitive bids, how does anyone know whether you your community is capturing the best value?

Excellent financial management is a collaborative responsibility between the management team and the Board of Directors. While there should be a good working partnership with your management team, business is business and Board’s owe it to the community to manage significant projects with a competitive RFP process. Good management partners shouldn’t allow anything less!

For more information, call Tim Wege, New Star President at 603-432-8778.

Is It Time? How to tell if it’s time for your Homeowner/Condominium Association to change Property Managers.

websites@hibu.com (Hibu Websites) — Thu, 16 May 2024 14:09:00 GMT

Is It Time?

How to tell if it’s time for your Homeowner/Condominium Association to change Property Managers.

Your association’s board meetings have been going well for a long time, but recently there is a new tension in the room. You notice body language around the table after your management company reports that all is good, but lacks data. Board members start asking questions searching for more detail and answers are vague. Perhaps you are surprised by the lack of funds to pay for recent capital expenses and wonder – why aren’t we better prepared for this? So, you return to historic Board Minutes to refresh your memory on earlier decisions and notice a lack of information. Subsequently, you notice homeowner complaints are on the rise about vendor performance, and you all start to wonder what’s happening.

While no property management team or association board is perfect, these are telltale signs that something’s up and further investigation is necessary. Hopefully, if both teams are willing to be transparent and trust for each other is intact, the above issues can be worked out and the business relationship will be better for it. However, if distrust, vagueness and dissatisfaction are not resolved, you would be wise to interview other management companies and get perspective, because changing property managers is not something that should be taken lightly. At the same time, don’t be tempted by inertia simply to avoid the work involved in making a change when it’s necessary. Once you find the right property management company for this season in your association’s history, you will make great strides in achieving today’s priorities and protecting homeowner values in the future.

How to Evaluate – The Scorecard

One approach to determining if the time has come to replace your current property manager is “the scorecard”. Upon entering into an agreement with your current management company there was a proposal and a contract. Create a list of the services your board required of the property manager in the contract and have each board member rate how well these services have been met. You can use a numeric value or pass/fail. Either way, it focuses your team on the issues rather than an emotional rational that’s been brewing or a personal agenda that doesn’t have the association’s best interest in mind. Be sure to identify real situations and not just opinions.

In addition, be sure you are not requiring effort from your property manager that was never part of the contract. Undefined expectations will never be met and can ruin any relationship, so be wise in your evaluation. If there is clear, consistent failure found in your assessment that was appropriately addressed yet left uncorrected by the property manager, you have your answer – move on. But if there were a few one-time failures that were amended, keep evaluating the criteria objectively while paying attention to the other stakeholders’ level of trust. If the trust has eroded to the point where the board and homeowners fear risking more failure and have lost confidence and respect for your management team, it’s probably time to move on.

Remember, as a board, you have the fiduciary responsibility to oversee and make decisions for the association. Partnering with the right management company for your association is critical to your community’s success.

What to Evaluate – Non-negotiables in Property Management Services

In many cases, associations grow dissatisfied with their management firm because the original set of requirements and expectations were ill-defined from the beginning. As we meet with board members in search of finding a new Property Management partner, we learn the history of how their current management company was secured. Often times it was many years ago with different board members who lacked understanding and experience on association management. This is a very common trend, which is why New Star Properties offers seminars discussing the financial, legal and practical work required of homeowner and condo association board members. The results are more confident and effective leaders who lead and serve their community.

Listed below are the non-negotiable services of an association property manager. If you’ve already included this criterion in your current contract, your evaluation process should be straightforward. However, if any of these critical components are missing it would behoove your association to update your current contract if possible, or start interviewing other candidates.

•Financial Expertise: Your Property Manager should have a clear and proven record of leading and supporting the board in Budgeting and Reserve planning. Oftentimes, associations struggle with significant deferred maintenance with looming capital projects while Reserve Funding may be grossly insufficient. It is a financially savvy Property Manager that can offer your association rectifying options, and make recommendations when securing funds is a necessity. Young communities must plan appropriately for the future to avoid these costly situations.

•Reserve Studies: Is there an updated Reserve Study (within 3-5 years) that gives guidance to the Board relative to funding levels and replacement timetables? Your management team should frequently reference Reserve plans and advise on potential shortfalls and strategies for stabilization. In addition, a knowledgeable management team will speak easily to the mechanics and necessity of a Reserve Study.

•Board Actions/Minutes: Your property manager must capture and create consistent accessibility to monthly board “action items” by clearly noting them on the Board Minutes. The Board should not have to “dog” the management team for follow up, nor should the discussion outcomes be too vague when referenced in the future.

•Transparency: Does the management team consistently convey an attitude of transparency? Is bid management handled professionally? Wanting to keep the Board as well as the community informed on progress of major projects, plans and budgets is what builds trust and accountability.

•Maintenance Work Orders: are they being addressed on a timely manner and meeting Board and community expectations? Some management teams have their own maintenance crews while others may contract with vendors. Either way, your property manager is responsible for the quality and delivery of those services.

•Routine Guidance: Is your property management team conversant with governance issues, have they even read your Covenants, Conditions and Restrictions and do they adhere to best practices? Experience in managing your type of association is what opens the doors to creative solutions, minimizes Board research and saves your community money.

•Collaboration: If your manager or the Board has an “us vs. them” attitude all team work will dissolve and everyone will dread monthly meetings. The board has clearly defined legal responsibilities and your Property Manager should have ample experience working with other associations thereby sparing you from making typical and costly mistakes – so engage in collaborative teamwork. Everyone will win!

Evaluating your property management situation objectively and making necessary changes will help to develop and keep your community financially healthy, build confidence among the ownership, protect property values and make the place you call home a pleasant community.

In 2015, New Star Properties introduced a new paradigm in property management that includes a broader view of association ownership than most companies. Today, New Star Properties provides complete services to meet the community’s shared property management needs, New Star RE which is a full-service brokerage is uniquely qualified to position and sell your home/condo when the time comes, and New Star Handyman is always ready to support owners when tackling those home projects not covered in the property management contract. Working with more than 30 communities in New England, representing over 3000 units, The New Star team is well versed in association living and a collaborative team on a mission to satisfy our valued communities.

How can we help you today?

Buying a Condo? What Savvy Buyers are Looking For!

websites@hibu.com (Hibu Websites) — Thu, 16 May 2024 14:09:00 GMT

Buying a Condo? What Savvy Buyers are Looking For!

Condo ownership can offer a ton of advantages. Community living where maintenance items like snow removal, landscaping and repairs are often cared for by the condominium association. Sharing common land, the housing costs for condos often are favorable compared to stand alone homes. Whether a condo purchase reflects your next home or your next rental investment, savvy buyers have a few key things to check out before making that purchase.

Although the real estate agent trying to sell the home may be talking about updated kitchens and fresh paint, the savvy buyer wants to consider their purchase with “eyes wide open”, understanding some of the lesser known challenges also associated with condo ownership. Perhaps “Number One” on the checklist is the association’s readiness to deal with capital replacements that ultimately emerge as roofs need replacement, streets and parking lots need repaving. Without checking on the community’s discipline and strategy to address capital replacements, the immediate delight of a condo with a new kitchen can turn to angst when a special assessment is received to fund a failed septic system, roof or other major capital component.

For “Condo Management 101”, the basic starting point to understanding whether a community is properly saving for long term replacements there typically should be a 3 ^rd Party Reserve Study. The Reserve Study typically has been developed by a 3 ^rd party engineering company commissioned by the Board of Directors to help the Board: 1) Quantify the community’s long term capital assets; 2) Understand the remaining life and replacement value of each asset; and 3) Establish a funding strategy with an approximate replacement timetable. It is this document that gives Boards the data needed to make decisions on the Annual Reserve Contribution. This document also gives the target ending balances for the Reserve Fund for each of the years covered by the study.

So, understanding that the condo with the pretty kitchen may not tell the whole story, the savvy buyer will first ask the selling agent for a copy of the Reserve Study as well as a copy of the most recent financials, including Balance Sheet and Income Statements. While requesting documents, the buyer will ask for at least a couple-to-three months of Board Minutes. If the seller has a hard time producing the documents, this will potentially be a “red flag” signaling deeper financial concerns for the larger community. In many cases, the seller should easily have access to all of these documents off the website portal, typically managed by the property manager. Alternately, in some cases, the buyer may have to contact the management company for the documents.

If the answer from the seller is that no reserve study exists, or there is only a study more than 5 years old, the “red flag” should be waving wildly. Without any kind of reserve study, this is an indicator that the Board is lacking guidance from their management team on data driven reserve planning. Likely, the community is substantially underfunded. If savvy buyer decides to proceed with the purchase, it is “eyes wide open” that somewhere in the future the community will recognize the deficits in planning and either begin a series of special assessments, obtain loans that saddle the community with debt service or, likely, there will be a significant jump in monthly dues once a Reserve Study is engaged by the Board and management team.

Although a review of the Reserve Study, comparing target year end reserve balances to the reserves on the association’s balance sheet is a critical examination for the savvy buyer, a quick review of Board minutes and financials will also add insight to the implications of a potential condo purchase. In the minutes, there may be references to capital replacement items. For example, a community may note that they are pumping their septic tanks multiple times a year out of concern that 35 year old systems have become fragile. Often there can also be non-financial references related to such things as parking concerns or dog management. By reviewing several months of Board minutes the savvy buyer will get a feel for the tone of the community, a sense of what kinds of things the Board is focused on and, whether, financial sustainability is a front and center concern.

Buying real estate, condos in particular, can be a great investment as well as a great home. While it’s exciting to see unit floor plans and layouts, every buyer should be looking deeper to understand fully the exposure to additional costs that may likely hit the community at one point or another if the association’s finances have not been methodically managed with the data driven Reserve Study. The best purchases are made when the buyer has “eyes wide open” when the deal is done!

About the Author: Tim Wege is the President of New Star Properties LLC and New Star RE LLC, the latter being the brokerage arm of the management company. Since New Star’s inception in 2015, the company has frequently been engaged helping communities turnaround from inadequate planning and management execution in the past. For more information, see New Star’s web site at www.NewStarPropertiesNH.com

Condominium/Homeowner Association Capital Project Funding Bank Loan Funding Considerations

websites@hibu.com (Hibu Websites) — Thu, 16 May 2024 14:09:00 GMT

Condominium/Homeowner Association Capital Project Funding Bank Loan Funding Considerations

So… Your community is facing some major capital replacement expenses, such as roofing or blacktop paving, and reserve funds are inadequate to handle the project. Perhaps previous Boards and management teams may have seriously short funded reserves and emergency conditions may require a level of funding where some sort of bank loan will absolutely be required. As a Board, you have already looked at funding possibilities such as raising dues, delaying the project, or implementing a Special Assessment. In spite of the options, the project ultimately is going to require external funding. Before signing the loan paperwork, there are several elements you will want to review:

One Last Look at Alternatives

Bank loans often appear the most attractive option in a moment of need but Board members will want to take that “extra look” at alternatives mainly because bank loans hang around with debt service payments for years to come. Long after the roofs are replaced, your community will be saddled with payments that can chew up anywhere from 10% to 30+% of your operating income. What seems like a relatively trouble-free funding solution in the moment will morph to future complaints and anguish from the community about the level of dues required each year to cover the debt service.

In an attempt to lessen the pain down the road on homeowners, Boards should take a look at lightening the loan by integrating 3rd party funding with a special assessment. Once the ultimate loan amount is lowered, the Board can choose either a shorter term for repayment or set a lower payment plan.

Choosing a Lender and Selecting Your Loan

Assuming the community must obtain 3rd party funding, Boards need to recognize that not all banks are equal in the ability and willingness to lend funds to COA/HOA communities. Unlike personal homes where the home itself becomes collateral for the lender, thereby reducing some of the lending risk, condo communities really only offer security to the bank in the form of future condo fees. Lenders cannot use the condo units to secure the condo loan as the Association is the borrowing entity and does not own the units. This lack of conventional collateral means that lenders may feel there is more risk than what they want to accept and either will not lend at all, or they will have terms that reflect their perceived risk.

Recognizing that lenders will vary, Boards will want their management team to look at 2-3 different potential lenders, depending on the size of the loan. Differentiation between lenders will typically focus on the interest rate being charged as well as the “reset term”. Typically, COA and HOA loans are considered commercial loans. Often commercial loans have an interest reset period every 5 years. In conventional, residential mortgage terms, the reset timing is essentially a type of an Adjustable Rate Mortgage.

As a general statement, repayment of the loan at the first opportunity is typically the best course of action, keeping in mind that “no loan” is superior to 3rd party funding. Remember, every year that you hold your loan, your operating budget will be higher by the debt service that must be paid for the year. Again, long after the original project has been replaced and funded, your community will be asking why “dues are so high” when an important part of this answer deals with the funding decision that seemed the easiest at the time.

When exploring loan options, attempt to get a fixed interest rate. For larger loans that will run for 10 years or more, try to get a reset period extended to at least 10 years. As the economy and interest rates will fluctuate over time, it is generally in the Association’s best interest to have fixed rates and predictable payments.

Other terms to be evaluated in a potential loan include working capital requirements (minimum account levels for checking or savings) as well as annual submission of financials. Among your final considerations, Boards will want to recognize that, typically, any lender that is extending a loan will often require all banking to be done through their organization. If the Board has an established relationship with a local bank the value of remaining with a known banking partner should be considered, particularly if another funding source is long distance.

Planning for Repayment & the Relationship of Debt Service to Reserves One of the most serious mistakes a community can make is the consideration of debt service payments as part of their annual contribution to Reserves. While I discuss Reserve Planning in another blog, the community’s annual contribution to Reserves should be set from a comprehensive analysis of community capital assets by a 3rd party engineering team that will project replacement costs, timing and a proposed funding schedule such that, going forward, the community can be spared the risk of financial crises resulting from inadequate funding. When a community considers their loan repayments as part of their Annual Reserve Contribution, everyone is misled on how much money is actually going into reserves. The community is thinking the full amount designated for reserve transfer is going into reserves when, in fact, only the funds that have not already been committed for debt service.

The reserve fund is only available for future expenses and not for the repayment of a capital projects already installed.

The repayment of the loan is generally presented to the Association as a single payment due. However, the payment is comprised of the principal portion of the repayment and the interest associated with the loan. For budget and monthly reporting purposes, only the interest expense should be included as an expense on the income statement. The principal portion will not appear on the income statement. Each month, however, the amount of “Notes Payable” on the balance sheet will be reduced by the principal portion. Consequently, while the principal portion of the loan repayment does not show up on the income statement, it does affect the balance sheet.

When preparing next year’s budget, your management team should have the amortization schedule for the loan showing the interest portion of the loan receding each month/year while the principal portion increases until the loan is fully paid off. Since the principal reduction is not included in the income statement, it is important to show excess cash after all expenses are paid such that this cash flow covers the principal portion of the annual debt service.

In some cases, the notes payable from the loan appears on the Reserve Balance Sheet. For accounting purposes, the principal portion of the debt service payment may have to be paid from the Reserve Income statement (to “relieve/or reduce” the debt on the balance sheet. In this unique instance, the monthly reserve transfer should be increased by the principal portion to ensure that the community’s annual reserve funding objectives are fully met. (Pardon the somewhat “wonky’ commentary here. Talk with your management team for clarification if necessary).

Final Notes

Reserve planning and capital funding is among the most critical challenges facing condo/HOA boards. Your management team should be actively collaborating to help the Board and community understand the scope of projects, funding and timetables required. The reality that many Boards face is that choices from historical years leave limited options to deal with shortfalls in capital funds. Regardless of what “cards” the current Board has available to play relative to funding near term capital replacement projects your forward plan should include the following:

• Make sure you have an updated (within last 3-5 years) reserve plan from a qualified engineering provider. If funding problems today result from inadequate data, planning or fiscal discipline from the past, you don’t want to continue with a process that guarantees the frustrating cycle of financial crises for the community.

• Generally, taking the “hard medicine” of special assessments is preferable from a long-term finance perspective to acquiring bank loans. Loan funding seems easiest at the moment of crises; but the after affects will haunt the community for years.

• In some cases, an association’s financial position is so strained and deferred replacement become so demanding that loan funding may have to be considered as part of the funding package. If a loan is absolutely required, check for terms and conditions, recognizing that bank’s willingness to work with a community will vary.

• Bottom line: Get through today’s crises; but, engage a proactive plan to stabilize the community over the long term. Ongoing crises management can be avoided with tough decisions and good planning made today!

About the Author: Tim Wege is the founding President of New Star Properties, a fast-growing /HOA management company based out of Londonderry, New Hampshire. Tim’s early career started in corporate financial planning in a major multinational company. With 30 years of experience, he finished his career managing a $40 million piece of the multinational’s business. Launching a brand-new management company in 2015, New Star had zero clients and zero employees. Today, the company manages over 3000 condominium/HOA units and over 200 multifamily and commercial units with a staff of 30.

Cultivating an Effective Board – Management Team Relationship

websites@hibu.com (Hibu Websites) — Thu, 16 May 2024 14:09:00 GMT

Cultivating an Effective Board – Management Team Relationship

Condominium and HOA communities all have Boards with the fiduciary responsibility for oversight of community facilities, grounds, finances and governance. Most Boards engage a 3 ^rd party management team to support their community and take care of the tactical and operating details of the day-to-day operation of the association. From that fairly common starting point, understanding the most effective relationship between a Board and their management team can be elusive. The effectiveness of the relationship depends on the expectations and constructs from both the management team as well as the Board.

As our office assumes management responsibilities for a wide range of communities, it’s interesting to note how expectations shape effectiveness and, ultimately, the satisfaction of the Board with the management team…and vice versa. For new communities, or communities that transition from self-management to 3 ^rd party management, sometimes there is a fear that the management company will be making “lots of decisions”, changing preferred vendors and driving up dues. Anyone familiar with the role of management knows that it is the Board that makes the key and strategic decisions affecting the community and the management company’s role is to implement policy and execute projects approved by the Board.

To optimize effectiveness and the potential strength of the Board/Management Team relationship, the operative word is “collaboration”. Board members have the best view of the interests and objectives of the community. Your management team typically has the experience and background from years of work with dozens of communities to help develop options and recommendations the Board can utilize in their decision process. It is not unusual that a challenge emerges which may be the first experience for a specific Board; but the management team can pull the experience of other communities, vendors or legal engagements that may quickly clarify the most effective path forward for the community.

As a point of clarification, although your management team should be able to draw on a wide range of community management experience, remember the proverbial context that property managers have experience and background often a “couple inches deep and miles wide”. However, as experienced as your team might be, they typically are not “experts” in any one particular field or trade. We are not qualified lawyers, insurance agents, irrigation experts, etc. While your management team has worked with all the specialties, your team should be able to recognize when greater “depth” is needed and recommend to their Boards engagement with experts such as condo lawyers, mold mitigators and the like. Your management team is more akin to a “generalist” that can help the Board identify when specialists really should be brought in.

At the end of the day, the Board, makes policy and strategic decisions. The effectiveness of the Board becomes magnified when it taps the experience and expertise of its consulting partner as both collaborate together to deliver the best in service and support to the community.