Hiring an Association Manager
Sometimes, when you have been living in a condominium for a while, either in the Hoboken/Jersey City area, or elsewhere, you can get a sense for what is good about the management of the complex, and what could use some improvement. A lot of the Boards of Directors try to self-manage the place. That can work, but it is usually better to hire a management company.
One of the problems with managing from within the Board of Directors is that it often places one neighbor in the position of admonishing another. This can be a sticky wicket, especially if these two neighbors are close friends. Some detachment is required to deal with situations like delinquency in payments, violations of the Board’s regulations, and such.
Even if the Board does hire a management company, there is a risk of over-supervising. The Board should delegate certain responsibilities to the management company, and then arrange for some sort of verification that these responsibilities are being fulfilled. One way to check this would be to have the manager report to one or two members of the Board on services provided. These reports could be quarterly, monthly, or even more often.
Once a year, a detailed report could be made to the full Board. Then, they could check to see if the services rendered are satisfactory to the members. Of course another source of feedback would be any complaints or compliments made by individual residents.
The management of a condo is a complicated affair. Someone has to see to it that the complex is maintained properly, and kept up to date with safety codes. Documents, such as insurance policies and tax reports require regular attention. The financial structure itself, with unit fees, salaries for staff, and maintenance costs is another whole task.
If your Board of Directors needs to hire a management company, they should not just pick a name out of the phone book (or from a Google search.) They should look into at least a half dozen or more prospects. They should also get references of other associations prospects manage, and carefully check these references. It would be good if the management company is an active member of the Community Associations Institute (CAI), a national organization which promotes good association management.
You need to ask if there will be an on-site manager, and how much time will be spent managing your property. Another significant factor is how many other such projects your manager is handling. Price is an object of concern, too, but not enough to sacrifice the quality of care your project receives. Only after thorough assessment of all aspects, can your Board of Directors make a wise choice.
How well is your condo managed?
Edward