Does your community need full-time onsite management? If your association is a high-rise or mid-rise building with systems like elevators and building-wide HVAC, you need full-time management to handle the complexities of maintenance, resident needs, package management, building access and more. But for many Florida communities, part-time management, also known as portfolio management, is exactly what they need.
“If you take high-rises out of the equation, portfolio management is the most common form of community association management in Florida,” explains Amy Sanchez, president at FirstService Residential. “Portfolio is an excellent option for smaller communities and those with limited amenities that don't require someone staffing the property full-time.”
Portfolio management allows associations and properties with limited needs to save money while still meeting the needs of their residents and community. It’s also necessary to understand that not every management company handles portfolio management in the same way, so partnering with the right one is critical.
What are some of the things your board should consider when choosing your level of management?
“Communities need to weigh the difference between lifestyle maintenance and cost,” Sanchez says. “‘How can I balance the cost of service with the quality and the lifestyle demands of the community?’ It's an extremely attractive and viable solution for communities, as long as they can determine that balance and support the quality of lifestyle that residents bought into. Ideally, it requires an active board and committees who are willing to supplement the management program.”
Benefits of portfolio association management in Florida:
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Cost efficiency: If you don’t need a full-time staff for things like complex system maintenance or resident services, you can save money by using a portfolio approach. Choosing portfolio management doesn’t mean you have to forgo services like full-time gate security or regular landscaping, just that the manager isn’t onsite full time. You may be able to save money you can invest in other association needs or desires.
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Flexibility: Working with the management company, your community may be able to schedule management onsite when you need them the most.
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Greater board control: For boards who want to be more hands-on in running their community, portfolio management is a great option. Choosing to have a manager who isn’t onsite full time can allow board members and committees to step up to fill some of the roles that a manager would traditionally take on, such as project administration or communicating with vendors and residents, as they want to. A great management partner will help you choose the level of management and professional services that’s right for your community association and your board.
Which communities benefit most from portfolio management?
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Communities with limited resources: If a community is looking to keep assessment fees in check, portfolio management might be an option.
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Communities with fewer amenities: If you simply have a pool and a couple of playgrounds, a management company with excellent support for managers can make portfolio work for you. Organization, clear communication of priorities and needs are key to success.
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Communities with an active board and committee structure: The work doesn’t stop. For a community to save on management costs using portfolio, they need to have a board that is willing to take up some tasks that would be handled by full-time management. “We've designed a matrix approach to help boards determine what level of service is right for them,” Sanchez explains, “that itemizes services that are included at each different level . It’s critical to sort out ahead of time what the community would like the management company to take on, and what the board will tackle themselves.”
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Communities that are smaller: “Even with limited amenities, communities with more than 750 doors are on the edge of needing full-time management,” Sanchez says. “Ask yourselves if you’re just too big a community to be part of a larger book of business.”
How does the management company handle portfolio management?
It’s important to understand that not all management companies handle portfolio management the same way. Your board needs to understand how many properties a manager is expected to handle and what resources and support they have behind the scenes.
“The industry average for managers is about 15 to 20 properties each,” Sanchez notes. “At FirstService Residential, we keep that between 2 and 8 accounts to make sure our communities get the service they need and deserve.”
Sanchez also explains that FirstService Residential portfolio clients have the same access to its infrastructure as those with full-time onsite management, including a call center with residential support and customer care. FirstService Residential has created a team of specialists trained in addressing questions and concerns from residents in the portfolio communities it manages. This means the residents get speedy responses and the manager has more time to provide valuable expertise to the community. They also have access to accounts payable and accounts receivable support, networks of vetted vendors and more. Not all management companies can provide those robust services to their communities.
Portfolio community association management might be the perfect choice for your community. It's crucial to carefully weigh these factors, considering the specific needs and priorities of your community, before making a decision. Remember, the best management approach is one that aligns with your community's unique culture and goals. It’s also critical to know how your management company approaches portfolio management and how they support their managers. To learn more about whether or not portfolio management is a good option for your community, contact FirstService Residential today.
Ideal community for portfolio community association management: a case study
Picture a charming, close-knit community nestled in a quiet corner of town. "Willow Creek Cottages" comprises 50 cozy townhomes, each with its own small garden. The residents, mostly retirees and empty nesters, value their peaceful lifestyle, a strong sense of community and affordable association dues.
Why Portfolio Management is Ideal for Willow Creek Cottages:
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Small size and close community: Willow Creek's intimate size fosters a strong bond among residents. They actively participate in community events and take pride in maintaining their homes and common areas. A part-time manager complements this self-sufficiency, offering professional guidance without overwhelming the community's existing dynamics.
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Simple infrastructure and limited amenities: The community's infrastructure is relatively straightforward, with minimal amenities beyond a small community garden. This reduces the need for full-time, on-site management and allows a part-time manager to effectively handle administrative tasks and financial oversight.
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Budget-conscious residents: Willow Creek residents are mindful of their expenses. A part-time manager offers cost-effective expertise, providing essential services without the overhead of a full-time position.
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Board engagement and volunteerism: The community's active board members and residents are happy to take on various responsibilities. A part-time manager can collaborate with them, offering guidance and support while empowering the community to maintain its self-governing spirit.
Additional considerations:
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Clear scope of work: The community clearly defines the part-time manager's responsibilities, ensuring expectations align with the community's needs and budget.
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Regular communication: The manager maintains consistent communication with the board and residents, even when not physically present.
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Flexibility and adaptability: Routine questions are handled efficiently by a team of specialists on call to provide resident support so the part-time manager can focus on the physical asset and the financial health of the association, as well as unexpected issues or emergencies.
Willow Creek Cottages exemplifies the ideal community for limited, part-time professional management. By forging a partnership with a management company with a fresh approach at portfolio management, the community is set up for success.