So what is the value of good management…and likewise the cost of poor management?
Let’s create an example:
If a community has 100 homes, and each home has an average market value of $250,000, then the total collective property value of the community would be $25 million (100 homes x $250,000). If, as a result of being well managed and maintained, the property values within that community rose 5% instead of 4% per year, then the collective incremental increase in property values achieved through good management would equate to an astounding $250,000 ($25 million x 1%)!
The value of good management in this example would result in an additional $250,000 for the community – or $2,500 per home per year.
Conversely, if the community was not maintained or managed properly, the collective cost of poor management would equate to the same $250,000. Ironically, some communities consciously choose to reduce the quality of their services, diminish the appearance of their buildings or grounds, or select a cookie cutter management company in the belief that they will save a few dollars.
Take a look at your own community and perform the same calculations to roughly determine your association’s value. Is your community making the same mistake – penny wise and pound foolish?
In addition to the day-to-day attention that Community Association Management provides to each community we manage, we are also acutely aware of the big picture. We create our services and educate our professionals to serve our customers with individual attention and integrity, and to protect the value of the communities we manage.