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A key element in the success of any community association is the selection of a management company to carry out association affairs. Yet all too often the selection process is a matter of whim or desperation, rather than of planning and evaluation. There are three reasons for this dilemma:
1. The failure on the part of a developer to recognize the need for management, especially during the development stage.
2. The inexperience of a Board of Directors and lack of willingness to pay for good services.
3. A shortage of qualified community association management firms. Fortunately, we are seeing less of the developer who simply wants to construct a community and walk away from it. Today's more astute developer realizes his reputation benefits if he provides the groundwork for ongoing management systems for the communities he creates. The Community Associations Institute (CAI), Urban Land Institute (ULI), National Association of Home Builders (NAHB), and others provide developers with educational assistance on management systems in the form of publications, seminars, and conferences.
Boards of Directors now deal with their lack of experience by taking advantage of the wealth of literature available on community associations and by attending seminars and conferences. Board members, in many cases, have lived in an association and have previously served on a committee. Experience is an excellent teacher.
As to the shortage of experienced community association management firms, while professional property management has been available as a service for many years, firms did not begin specializing in the community association field until the late 1960's. Even though experience and education has hastened the professionalization of firms in this specialized area, the number of experienced firms still falls short when compared with those in other property management specialties. Community association management is a field that requires a basic understanding of human behavior, real estate and corporate law, management fundamentals, accounting and budget processes, taxation, insurance, grounds and building maintenance, and communications techniques. To find, train and retain managers with sufficient knowledge and skills takes time and the ability to pay salaries commensurate with these skills.
Please call Rinaldo A. Acri (412)459-0111 for a personal consultation to discuss how your association can benefit from professional management.
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