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Community
Association Management
Community
associations do not run well by accident. Any person who has
ever served on an association's board of directors understands
that this position can be both rewarding and thankless. The boards
of directors volunteer as a service to the community and most
directors have a limited understanding of director's duties and
the overall requirements of managing a community association.
To fill this need, professional managers and management companies
are in business to assist the board with its duties.
There
are three basic forms of community management for an association.
The size of the community, the level of services required,
and size of the common areas under its control often determine
which type of management is most effective.
1.
Volunteer/self-managed--under this type of management,
either a member of the board of directors or another member
of the association serves as the manager. As with service
on the board, a volunteer manager does not get paid. Although
this saves the association money by not having to contract
for management services, this can cost the association in
other ways. Depending on the level of experience and knowledge,
a volunteer manager can cost the association unforeseen expenses
for bookkeeping, administrative, legal, and other errors.
In addition, persons volunteering for this position can easily
get frustrated, leading to rapid turnover in the position.
2.
Association-employed--as its name implies, some associations
choose to hire a professional manager to work on-site, as
an employee of the association. This is normally the most
expensive route, as all benefits for this employee are paid
with association funds. With due diligence in the hiring
process, an association can avoid the mistakes often committed
by volunteer managers by hiring an experienced professional.
However, the association will face additional costs when
the on-site manager is absent from work.
3.
Management Company--the hiring of a professional management
company provides an association continuity through access
to the company's personnel, procedures, and business equipment.
Most management companies are professionally run with formal
policies in place to provide all necessary services. The
types of services needed by an association should be included
in the management contract to clearly establish the duties
expected of the company. Despite the cost of the management
fee, hiring of a management company can prove to be a cheaper
alternative than the other types of management and save time
and effort.
The
primary duty of the board of directors is to protect, maintain,
and enhance the value of the community. The effectiveness of
the board in meeting these duties can often be determined by
the type of management the board chooses for the community.
The board of directors can benefit from experienced professionals
in preparing for association meetings, maintaining detailed
accounting records, collecting assessments, maintaining the
common areas, enforcing deed restrictions, changing the governing
documents, and other board duties. It is important to keep
in mind that regardless of the type of management, the manager
serves both the board of directors and the members of the association.
For
a successful association, the board of directors, the association
members, and the manager all must work together to benefit
the association as a whole. This is best accomplished through
active communication, cooperation, mutual support, and attention
to duties and detail.
Association Times' Staff Writer
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