Is full-time, onsite management necessary for your community association? High-rises and mid-rise buildings with complex systems like elevators and extensive HVAC likely need dedicated, full-time management to address maintenance, resident services, package handling, building access, and other intricacies. However, for many Georgia communities, part-time management could suffice.
"Excluding high-rises, portfolio or part-time management is the prevalent form of community association management in Georgia," notes Amy Sanchez, president of FirstService Residential. "Portfolio management is a great choice for smaller communities or those with limited amenities that don't require full-time staffing."
Portfolio management allows associations with fewer demands to save on costs while still catering to residents and maintaining the community. Like any solution, it has its advantages and disadvantages. It's also important to recognize that not all management companies approach portfolio management the same way. The right management company will offer varying levels of service to meet your needs and budget. So, what factors should your board consider when deciding on your management level?
“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.”
Advantages of portfolio association management in Georgia:
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Budget-friendly: If your community doesn't require constant staffing for tasks like intricate system upkeep or extensive resident services, a portfolio approach can potentially lead to significant savings. Opting for portfolio management doesn't mean sacrificing essential services like full-time gate security or consistent landscaping; it simply means the manager isn't physically present all the time. This can free up funds for other community needs or improvements.
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Increased board involvement: For boards seeking a more active role in their community's operations, portfolio management can be an excellent choice. Selecting an off-site manager empowers board members and committees to take on some of the traditional manager responsibilities, like handling projects or interacting with vendors and residents, as they see fit. A strong management partner will collaborate with you to find the perfect balance of management and professional services that meet the specific needs of both your community association and your board.
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Adaptable scheduling: Collaborating with the management company, your community can strategically schedule the manager's onsite presence to align with your busiest periods or specific requirements.
Which communities thrive with portfolio management?
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Communities with budget constraints: If keeping assessment fees low is a priority, portfolio management could be a viable solution.
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Communities with fewer amenities: If your community's offerings are limited to a pool and a tennis or pickleball court, a management company with strong support for its managers can make portfolio management work effectively. Organization and clear communication of priorities are essential for the success of portfolio management.
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Communities with engaged boards and committees: To get the most from portfolio management's cost savings, the board must be willing to take on some of the work typically handled by full-time management. "We've developed a matrix approach to guide boards in determining the right service level for them," Sanchez explains. "It's crucial to establish upfront who will handle vendor management, project administration, and other necessary tasks. What falls on the manager, and what's the board's responsibility?"
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Smaller communities: "Even with limited amenities, communities with more than 750 units are pushing the limits of what portfolio management should effectively handle," Sanchez advises. "Consider whether your community's size might necessitate full-time management."
Understand the management company's approach to portfolio management:
It's crucial to recognize that management companies handle portfolio management differently. Your board needs to know how many communities each manager oversees and the resources available to support them.
“Industry-wide, managers typically handle around 15 to 20 properties each,” Sanchez points out. "At FirstService Residential, we limit that to between 2 and 8 accounts, ensuring our communities receive the attention and service they deserve."
Sanchez further 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 to handle basic questions so the manager doesn’t have to. 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 presents a mix of pros and cons. Carefully evaluating these factors, considering your community's specific needs and priorities, is vital before making a decision. Remember, the ideal management approach harmonizes with your community's distinct culture and objectives. Understanding how your management company handles portfolio management and the support they provide their managers is also key. To explore whether portfolio management is a good fit for your community, contact FirstService Residential today.
Ideal community for portfolio community association management: A case study
Imagine a charming, close-knit community tucked away in a peaceful corner of town. "Pine Valley Townhomes" is made up of 50 cozy townhomes, each boasting its own private garden. The residents, mostly retirees and empty nesters, cherish their tranquil lifestyle, a strong sense of community, and reasonable association dues.
Why portfolio management is perfect for Pine Valley Townhomes:
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Small size and close community: Pine Valley's intimate size fosters a strong bond among residents. They actively participate in community events and take pride in maintaining their homes and shared spaces. A part-time manager complements this self-sufficiency, offering professional guidance without disrupting the community's existing dynamics.
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Simple infrastructure and limited amenities: The community's infrastructure is relatively uncomplicated, with few amenities beyond a small community garden. This reduces the need for full-time, on-site management and allows a part-time manager to efficiently handle administrative tasks and financial oversight.
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Budget-conscious residents: Pine Valley 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 willing 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.
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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.
Pine Valley Townhomes exemplifies the ideal community for limited, part-time professional management. By partnering with a management company that offers a fresh approach to portfolio management, the community is well-positioned for success.