Residential communities may nominate board members or ask volunteers to manage financial and operational matters. To reduce the administrative burden on these community members, the board can hire a professional community management team. These management companies offer financial guidance and handle daily tasks for residential communities. Here are five ways professional management companies help cost-conscious communities save money:
1. Create Budgets
A community management company may help board members create an effective budget for the upcoming year or other specific timeline. They will examine past bank statements, current expenses, and future maintenance needs to identify areas where the community can save money. Limiting expenses to necessary services and maintenance projects helps a community save money. Creating a custom budget for the community prevents overspending and keeps board members informed of how all money is used. Depending on the community’s preferences, management teams create weekly, monthly, or yearly budgets. They can also start saving funds for significant community projects to prevent financial burdens in the future.
2. Collect Assessments
Special and standard assessments allow communities to receive funds for maintenance and other approved tasks. Residents pay assessments to maintain their good-standing status in the community and support neighborhood improvement efforts. Cost-conscious communities may hire management companies to collect assessments and create plans for special assessments. These teams create online portals where residents pay their assessments and receive updates about upcoming fundraising. An efficient system for collecting assessments increases the community’s financial resources and supports shared property upgrades.
3. Negotiate with Contractors
Residential communities may partner with local vendors and contractors for various maintenance services. Community management companies hire and negotiate with these service providers to make sure the necessary work is completed properly. They also confirm that cost estimates are fair and within the community’s budget. When management teams communicate with contractors, board members can focus their time and resources on other resident needs.
4. Prepare Financial Reports
Cost-conscious communities should look for management companies that offer financial services. These services should include generating monthly and annual financial reports. Accurate reports help communities prepare for audits and planning meetings. Professional management teams have financial experts who understand which data is required for a comprehensive and legally compliant report. These financial support teams also monitor expense accounts and confirm invoices are paid on time to prevent fraudulent activity and maintain a positive reputation with service providers. Hiring financial experts reduces a community’s reliance on board members with limited accounting or financial management experience.
5. Customizable Services
Some professional management companies offer a range of services that can be combined and customized to meet a community’s needs. Communities can choose full management, on-demand, or financial-only services. Full management services involve hiring an on-site team to handle daily tasks and address resident concerns. On-demand services allow board members to ask for support from management teams during busy seasons.
This is a good option for communities who want to save money while accessing high-quality management services. Financial-only solutions are good for communities that prefer to manage their on-site operations but require assistance with budgets, assessments, and other financial concerns. The flexibility of customizable services and different solution packages allows communities to find management teams that provide high-quality services at an affordable price. It also encourages board members to seek professional help to improve aspects of their communities that need extra attention.
Explore Community Management Services
Professional community management teams help save time and money for community developers, board members, and residents. Their services reduce the administrative burden on community boards and volunteers, allowing them to focus on other community betterment projects. Contact a management service provider today to learn more about their customizable solutions.
