5 Red Flags to Watch for When Choosing a Condo Management Company
If you’re a condominium homeowner, it’s crucial to have the right condo management company. A bad management company can make or break your experience! A professional management team has many day to day tasks, but overall their job is to make sure your building is run smoothly, maintenance issues are addressed quickly, and the property value is secure. On the other hand, poor management can be obvious or subtle - which can lead to sudden, high costs for owners, overspending, and deterioration of the property and it’s value.
“But what if the corporation already has a management company, they just aren’t very good?”
We’re so glad you asked! It is entirely valid to look for a new management company when you’re current one isn’t working for you. 🙌
With that said, here are five red flags to look out for when looking for a condominium management company:
1. Lack of Transparency
A trustworthy condo management company is upfront about fees, contracts, and policies - both their own and any that may come up for your corporation. It’s a warning sign if they aren’t being transparent. If your corporation isn’t quite sure where the money is going, what the terms of contracts are, if owners can even get any paperwork from the company, and poor communication in general, it may be time to switch.
2. Poor Communication
Similar to being transparent, great communication is key to a good condo management company. If the company is slow to respond to emails or calls, disappears occasionally without a word, or resident concerns are not quickly addressed, it can mean deeper organizational issues. A reliable management company will communicate everything, and communicate often! Major bonus points if they have an online platform to communicate with and store paperwork.
3. Neglected Maintenance and Repairs
One of the primary responsibilities of a condo management company is keeping up with maintaining building components. These are things like common areas, elevators, landscaping, roofing, fences, and other shared facilities. Delayed repairs or ignored maintenance requests are major red flags, as well as not proactively planning for the end of life replacement costs of these components. Proactive management keeps the building in good condition before disaster strikes.
4. Negative Reviews and Reputation
If you have a management company or are considering hiring one, look online! Read reviews and get references from other condo boards or residents. Consistent negative feedback, especially over a long period of time and over multiple boards, is a clear sign to stay away.
5. Inadequate Financial Management
Managing a condominium’s finances requires being proactive, financial knowledge, and diligence. Signs of concern include poorly managed budgets, unexplained expenses, or failure to provide detailed financial reports. A competent condo management company ensures intelligent budgeting and proper allocation of reserve funds.
Final Thoughts
Choosing the right condo management company is about more than how much they charge or whether they’re the “top rated management company in the area.” It’s about professionalism, reliability, and communication. Ideally, the company should also have a deep understanding of the condominium industry that goes beyond just management.
By keeping an eye out for these red flags, you can make an informed decision and secure a management partner that genuinely cares about your corporation’s success.
