Condo Management Company vs. Self-Managed: Which is Right for Your Corporation?
When it comes to running a condominium, boards often face one big decision: should we hire a professional condo management company, or should we self-manage? Both options come with unique benefits, and the right choice depends on your community’s size, resources, and goals.
The Benefits of a Condo Management Company
1. Professional Expertise
A management company brings years of industry experience, including managing finances, project planning, and many other areas that benefit corporations. They really know the ins and outs of the day to day affairs of a corporation.
2. Time Savings for Board Members
By hiring a management company, the workload is taken off of board member’s plates, allowing them to spend more time making important decision.
3. Industry Relationships
Management companies usually have established relationships with contractors and service providers, which can mean faster response times and better pricing.
4. Financial Oversight
Professional managers provide detailed budgets, reserve fund planning, and financial reporting, and if they’re worth their salt, will ensure transparency and accountability.
5. Peace of Mind
With a management team in place, residents and board members can feel confident knowing experts are handling emergencies, maintenance, and compliance.
The Benefits of Being Self-Managed
1. Cost Savings
One of the biggest advantages of self-management is avoiding management fees. For smaller communities with fewer units, this can make a big difference.
2. More Control
Self-managed boards have complete oversight of decisions. They don’t rely on an outside company, which if the management company is disorganized (note - we are very organized), could mean a long turn around before action is taken.
3. Stronger Community Involvement
When board members are actively running the building, residents feel more connected and engaged in the community. Decisions are made by people who live there and understand the property first-hand.
4. Transparency
Since all decisions are made internally, homeowners may feel they have greater visibility into how money is being spent and how issues are being handled.
Which is Best?
There’s no one-size-fits-all answer. A condo management company is often the right choice for larger buildings or communities with complex needs, while smaller condos may prefer the hands-on approach of being self-managed.
The key is to weigh your community’s size, volunteer availability, and long-term goals. Whether you choose professional management or self-management, the ultimate goal is the same: protecting property values and creating a thriving condo community.
