How to Choose a Property Management Company

By Dan Tiernan / Published September 2019

No two communities are identical; each community has various factors, which influence what type of management will most effectively help them accomplish their goals. Some of these factors include the availability of resources and the complexity of the community itself.

     Factors which influence the type of management your community needs:

• Community size and complexity—Generally, the larger the association and the more diverse services it provides for its residents, the more sophisticated the management solution and skill required to manage it effectively.
• Financial resources—The smaller the available funds in an association’s budget, the less a complex management solution is needed.
• Availability of volunteers—The less the owners are willing, or able, to volunteer time to carry out administrative functions, the more contractual talent will be required of the management company.
• Services and amenities—The greater the number, variety, and complexity of association services and amenities, the greater the administrative burden.

     When the board understands what factors influence their community’s needs the most and have established a fee for which the association is willing to pay for services rendered, the process of finding the right management company begins. Define your requirements and identify qualified management companies to ask for a bid.

     Make sure to define the criteria most important to you in the selection process. Selection criteria examples to consider include these items:

• Reputation/feedback from references in the area—Can you trust this company to do what is best for your community? How long have they been in business? Do they have nearby clients or references from similar communities?
• Contract flexibility—Will you be locked into an agreement that won’t allow changes? Does the company bait you into a long-term contract by offering an initial discount?
• Customization—The complexity of a community directly correlates with the level of experience needed by management and staff to help accomplish the community’s goals.
• Quality of the people—Look beyond the sales team to understand the quality of people in the company. How does the company hire, develop, and retain employees?
• Ongoing support—What type of support does the management company offer their property managers? Do they receive ongoing support and training? What systems does the management company have in place to help their property managers be successful at properties?

     If you allow the community manager to manage, the time involvement from your board and/or their appointed committees is significantly reduced. Remember, as the board of directors, one of your main functions is to direct and advise your management company. The many hours per week involved in accomplishing property tasks will be the responsibility of your new management company and its staff.

Dan Tiernan

Chief Operating Officer, Campbell Property Management Services

Dan helps develop and deploy the best practices and tools, which are used by our managers to continuously improve Campbell’s services. Dan started his career with Accenture and later ran consulting and software businesses in the purchasing, human resources, and financial services industries. Dan and his wife, Amy, have four children who are active in school and sports. He and his family relocated from the Philadelphia, PA, area when he joined Campbell in 2011. Dan graduated as an industrial engineer and is proud to be a Ramblin’ Wreck from Georgia Tech. For more information on Campbell Property Management Services, call (954) 427-8770 or visit www.CampbellMGT.com.