What is Remote HOA Management?
Remote HOA Management vs. Traditional Management Company
Before we get into the difference between traditional management and remote management, we need to go into a bit further behind the "why" we started this.
The founder of Numerus has nearly two decades of experience and has helped several companies in the HOA industry grow from their start-up stages to being the largest management firms in their region. As a pioneer in remote HOA management, Numerus brings a depth of experience and a unique value to community associations.
While professional HOA management is very much needed, we have seen how other companies run their business and the unethical business practices that plague the HOA industry. Back office deals and inside connections including collusion, price fixing, and kick backs run rampant in the HOA industry.
Let's be clear: HOAs are non-profit organizations who are solely funded by the residents of their community. In many cases, the volunteer board members have no experience in the industry, do not have financial backgrounds, or are just too busy with their careers and families to see what is happening.
Some common scenarios that happen on a daily basis in our industry:
Connections to developers that lead to management companies overpricing their services
Long term contracts that lock associations with excessive cancellation fees, or no way to terminate
Price fixing with vendors
Management company owners creating other companies to over charge their associations and funnel money:
Insurance agencies
Pool companies
Landscaping companies
Maintenance companies
Tax preparation services
Rather than bidding these services out to get a fair price, they coerce the board into using their sister companies. Some companies are up front about the relationship, while others try to use registered agents and create LLCs, sometimes to in other states, to hide their business practices from their clients and others in the industry.
Numerus exists to help HOA board members serve their communities with integrity and transparency. While not every management is "bad," the fact remains that traditional full service management may not always be the best fit for every association.
We the original creators of the remote HOA management model, we are now offering our services in a way that honors values and ethics.
How does Remote Management Compare to Traditional HOA Management Companies?
A homeowners association is necessary to protect and maintain the common assets shared among the members of the community. While some associations have a larger amount of assets, like recreational amenities, sport and athletic amenities, shared parking, storage units, playgrounds, etc., other associations have fewer, or no amenities, and very little to maintain in terms of common elements.
Some associations are large enough to require the presence of a full time property manager and management staff that work on premise full time. In these two cases, if the HOA is using a local HOA company, chances are they may be overpaying for the services they are receiving.
HOA management companies generally provide the same core set of services. And while they may do certain things a little differently from the other, the overall service is commodity. Sure, the company can talk about things like their people, their process, and their purpose, but ultimately the services provided are all the same. Generally speaking an HOA company takes care of the administrative functions of the board, but does not make decisions. These services and responsibilities include:
Collecting assessments from HOA members
Paying bills and vendors for services provided to the HOA
Providing financial statements each month
Inspecting the community
Reporting violations and issuing citation letters
Assisting with resales / estoppels
Coordinating repairs and maintenance and soliciting bids as required
Coordinating insurance claims
Coordinating with collection agencies or attorneys for delinquent assessments
Assisting the Board President to oversee meetings
Assist homeowners when service is needed - questions about payments, reporting violations or maintenance issues, etc.
As a remote HOA management company, Numerus can provide many of these same services at a fraction of the cost. Go back and re-read list above, the items highlighted in blue are the ones we can provide. When you factor in that we can reduce management costs by anywhere from 30 to 60% compared to what most local HOA companies charge, is a local management company worth the higher price tag?
It depends.
Generally speaking, older condominium developments or larger HOAs with amenities (pool, club house, etc.) are better suited for a local HOA management company. If the board needs a property manager that can be onsite when needed and respond to maintenance emergencies on a 24/7 notice, then a local management company is better suited for the association.
However, if the board is comfortable with addressing maintenance needs, doing their own community inspections, and running meetings without the assistance of a property manager, then chances are, Numerus may be a better fit and will help the board control costs for the association.
If you're not sure about needing a local HOA company, or have questions about our remote HOA management model, please contact us today. We'll happy to speak with you in detail about your particular situation, offer guidance and suggestions, and provide a free quote.