FROM SELF MANAGEMENT TO PROFESSIONAL ASSET MANAGEMENT

A 176-unit homeowners association.

Before our appointment as property manager, this self-managed association's assessment delinquency rates were extremely high, the reserve account was under funded with special assessments occurring often, insurance premiums were escalating, and contractors were not fulfilling their obligations.

Reducing Delinquencies. As with many self-managed associations, collecting assessment fees is difficult, especially due to neighbor relationships.

Upon our assumption of management, we immediately implemented automated collection procedures with maintenance fees billed monthly, rather than quarterly. The delinquency rate continues at a low rate of 3%.

Expecting the Unexpected.
Historically, the association was plagued with all too occasional special assessments due to the lack of a reserve plan. We developed reserve requirements using a capital reserve model. The monthly contributions to the fund have eliminated the need for special assessments in the future.

Savings on Insurance. This association, for the prior three years, had noted their insurance premiums were increasing rapidly. Through a competitive bidding process, we were able to take advantage of the present carrier's desire to maintain business and were able to reduce the insurance premiums by 15%.

Choosing the Best Contractor. Due to a large amount of exposed wood on the structures, painting had become a major area for contract service. In prior years, the association had relied on low bidders to perform their work, with little or no regard to specifications. The end result was painting of an inferior quality. Peeling and wood deterioration quickly followed every spring.

Under our management, we developed specifications for the project. The contractors were interviewed and their references checked. A quality contractor was secured and the painting problems have all been remedied.