North Hidden Lake Owners Association.

Our Management Company Has Quit The Business

Nov 06, 2002

Late this summer, I was notified that our most recent management company was leaving the business. That's our 3rd management company to leave the business since I've been here. Trust me, it's not us. The day-to-day stress of handling their multi-unit properties burns them out. But they can't live without them, because that's where the bulk of their revenue is.

The bulk of what HOA Management Company, Inc. was providing to us was actually being performed by 3rd parties. They subcontracted the accounting to an accountant, the collections to a collections attorney, the taxes to a tax specialist, etc. Most of the day-to-day things were handled by our Board of Directors. That's why we were only paying $1 per home per month. Contrast that to the Yacht Club, where their management company handles their day-to-day things. They pay $15 per home per month!

We have been able to arrange for all of the 3rd parties to continue handling the same things they were handling for HOA Management Company, Inc. We'll have the same accountant, the same collections attorney, the same tax specialist, etc. The only real difference is that we will no longer have the 24 hour emergency number, but I doubt we've ever used it anyway. There is an HOA management company that shares an office with our accountant. So if we need advice, guidance, assistance, etc, we would have access to them on an as-needed (pay as we go) basis. The bulk of the work is in managing the 160 homeowner accounts, receiving funds, making bank deposits and dealing with Realtors and title companies.