December 2022
There is an ongoing need for condominium managers and property management services. While most communities desire competent condominium management, fewer are clear on what this means or its cost.
Price is a consideration. Paying too little for condo management comes at a cost which can include inexperience, poor service and maintenance, bad advice, and higher costs elsewhere in the budget.
When we talk of condominium management, this refers to some combination of condominium manager, administrative staff and back-office support. Most communities employ a condominium manager who may operate on- or off-site. When more than one individual is required, lower-level administrators may be employed. The term generally refers to a condominium manager-in-training gaining experience while taking courses to obtain their license. Administrators tend to deal with day-to-day operations while the manager takes care of larger issues. Back-office operations cover a range of expertise and duties not handled by the manager.
Entry-level condominium manager salaries start at about $37,000 based on a review of some job posting sites. Experienced managers may earn double or triple this amount. Average administrator salaries are estimated at $40,000.
Accounting and overhead should be considered when evaluating the cost and need for qualified condominium management.
Accounting
Accounting is a time-intensive task encompassing the verification and recording of all financial transactions related to the corporation. This includes monthly common element fees for each unit, invoices for maintenance, monthly contract payments, and much more. For the typical community this amounts to thousands of transactions per month. Once posted, transactions need to be reviewed to ensure financial statements are correct and timely. Poor financial information leads to poor operational decisions, unnecessary spending and, potentially, fraud. Financial stability of the community depends on how accounting is handled.
Some communities handle their accounting internally. Others rely on back-office support provided to the condominium manager through a property management company. When handled as a back-office service, the provider is responsible for implementing processes, controls, policies, and systems; and to provide an ongoing assessment of overall fiscal health. They are expected to provide monthly and annual reports, along with training for the condominium manager to understand and interpret these reports. For efficiency, accounting departments utilize a standardized accounting system and software across all their clients.
Overhead
This refers to the varied services provided by a property management company in support of a condominium manager and community.
There is a cost for licensing, software, insurance, staffing or human resources, education, liability and other business expenses. When condo boards seek information, they may request the expertise of their condominium manager who may have access to specialized expertise through their management company. A condominium manager with access to expertise within their company offers more value and has more time available for other purposes.
Higher overhead fees suggest the availability of more specialized help being available. This reduces costs for consulting, legal or other services.
Communities with an understanding of their requirements are better able to determine what services they desire thus helping to reduce the overall cost of management.
