THREE TIERS OF MANAGEMENT FOR YOUR CONDO OR HOME
1. HOA - This stands for Home Owners Association. They are the organization that manages the condominium. It is made up of the individual owners in the project and they share the responsibility to manage the common areas. This group often hires an agency to do this management for them and is called Project Property Manager. This Manager put together the condos budget, hires and fires workers, oversees all works, pays employees and common area water and electric bills, etc. Each owner shares in the cost of these bills and works. That is called the HOA fee which is established each year at the annual HOA meeting. The cost is established based on the budget and the works the HOA vote on to execute in that year. All have to pay this fee.
2. PROPERTY MANAGEMENT - This is the office that helps to manage individual homes and condos. They are the people that pay your bills such as electric, water, phone and property taxes. They also would be responsible for checking on your property occasionally, cleaning occasionally and organizing the repairs and maintenance of the interior of your unit. There are many great companies here that offer that service and the cost ranges from $75-$150/mo. This is an optional service, as you can do these things on your own over the internet and hiring contractors. However, many people find it a useful service if they don't actually live here full time and want to make sure there home is looked after.
3. RENTAL MANAGEMENT - This often is the same company that does your property management and could also be the project manager as well. Its nice to have them one in the same. Their main role is to procure renters for your condo. Process the fee for renting your condo or home and manage the renter while they are here. They do the marketing and take care of clients questions from beginning to end of their stay. The fee is normally around 20% of the rental value. This is divided into 10% to procure the client and 10% to manage them. Often owners procure their own leads and have the option to funnel them to the rental manager to handle and get the 10% commission for themselves and only pay the 10% to the rental company to manage the client for their stay. There are a variety of companies to go with and it would depend on your property to decide which will perform best for you.
Let me know if you have any questions, I will be more than happy to help!
Stacey Watson, RE/MAX Real Estate Agent