Management Fees
Basic Management Fee Structures
In most cases, the management company receives a cost per resident door with a minimum fee to apply. Not every HOA requires the same set of services and therefore the management fee can range from $8.00 per door to $14.00 per door based on services need by the HOA. The services and prices are set forth in the management agreement. Prices can be adjusted annually or during the year if more or less services are needed on a regular basis.
In addition to a management fee, the management company may be compensated for providing services that require out-of-pocket expenses, special supervision, additional meetings above the management contract, mailing of newsletters, and other such services not specifically included in the management agreement.
The following management agreement outlines the expectations of the HOA and the management company. Common HOA expectations are:
- Ethical practices
- Confidentiality regarding HOA information
- Qualified, experienced personnel
- Detailed reporting
- Thorough long-range planning
- Sophisticated financial accounting
- Thorough analysis of the properties performance
- Frequent communication
- Rapid response time
- Sufficient reserves for future needs
- Knowledge of physical maintenance
The following services would be typical of the services included in an $10/door agreement:
- Monthly Statement of Accounts
- Monthly Reconciliation of Statements
- Monthly Income Statement
- Monthly Budget Comparison YTD
- Monthly General Ledger List
- Monthly Past Due List
- Bi-Monthly Payables List for Board Approval
- Disbursement of Monies to Vendors
- Notice of Past Due Mailing (Postage extra)
- Payment Coupons (Mailing & Copy Expense extra)
- Credit Card and ACH capability (expenses paid by resident)
- Attendance at Quarterly Board Meeting
- Unlimited On Line Meetings and Conference Calls
- Bi-monthly Property Inspections
- Weekly Contact with Board Members
- Web Site Creation
- Toll-Free Information Service
- Contact and Mailing for Citations and Violations
- Dispatching of Service Calls to Contractors
(Rates can be adjusted up or down depending on the number of report, on premise time, and contractor supervision on site. Quotes are available upon request.)
See Also: HOA Communities | HOA Board Member Resources | HOA Management Info