Much of condominium property management focuses on saving money, avoiding expenses by properly maintaining large assets, and preserving economic value. When the financial value of a condominium building is in the millions or tens of millions of dollars, the importance of professional and effective property management cannot be overstated.
Poor management of a condominium property or its association usually depresses the economic value of individual condominium units. That alone should be enough of a reason for condominium properties to seek out a competent property management company.
Most sizeable condominium buildings contain over one hundred building components, internal systems, and pieces of equipment. Each of those has a finite useful life. In order to maximize the useful life of each, ongoing preventive and predictive maintenance is crucial. Otherwise, building systems and equipment can malfunction or fail prematurely, increasing the number and cost of repairs and replacements. Those direct costs are usually in the tens of thousands of dollars. There are also indirect costs associated with loss of goodwill with occupants of the building.
Professional condominium management is also important because the procurement of virtually every service, repair, and replacement at a condominium building is an opportunity to save money. A single condominium property will overpay in almost every instance as compared to the price that could have been achieved by a property management company with buying power from managing dozens of properties. The cumulative difference in costs is significant even in the short term.
A superior management company saves the condominium association money in other ways, too through its existing business relationships with tried-and-true contractors and service providers that can readily identify the proper scope of work, complete the work properly and on time, and prevent additional future costs for corrective work.
Accounting and financial reporting are vital functions of the condominium management company. Properly billing and collecting dues and other charges from unit owners is important, and accurate and timely financial reporting enables the association’s board of directors and its property management company to effectively manage the property’s operations and resources.
In summary, competent and effective condominium management is a crucial service that should be performed by skilled professionals who rely on extensive experience, knowledge, and keen judgment to minimize expenses while preserving and enhancing economic value.