There are over 50,000 associations in the State of Florida. Millions of people live in associations. There are 30-40% of US associations that are considered self-managed.[1]
Being self-managed carries a high-risk factor. You have unit owners controlling all aspects of the association with little or no internal controls. They have access to the accounting systems, keep track (or do not keep track of) receivables, etc. When assessing audit risk, we have a much higher measure on self-managed associations than managed associations. Which also means that you will pay a higher fee.
When you hire a management company, you are paying for these internal controls. Sure, it can be expensive (Everything is expensive these days). You want to make sure you aren’t saving money on management fees to lose it on uncollectible assessments, poor oversight of projects, higher costs due to lack of bargaining, etc. Using a management company gives you access to entire departments for processing transactions, such as Accounts Receivable, Accounts Payable, Accounting, and Property Management. Segregation of these duties is a huge risk mitigator.
It will also save you time. When you find the right fit with a management company and property manager, you will soon find the time to spend with your family (or golfing!).
Disclaimer time... We do our best to provide the most up-to-date and relevant information with our subject matter. It is our opinion, and we are not a government entity nor an authoritative source for professional research. Always hire a professional when you want the most accurate information as it relates to your company/association specifically.
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