Some associations with many members may choose to retain a property manager directly, meaning the association hires the manager as an employee. This is known as in-house Phoenix HOA management and is done because it is cheaper than paying for full-service management from a property management company. The in-house management may be a volunteer. However, in-house management can have its disadvantages. If your manager goes on vacation or gets sick, who will step up to fulfill this person’s responsibilities? Also, who is the manager accountable to?
The third Phoenix HOA management option is financial-only management, where the association’s Board of Directors makes the big decisions, but leaves the financial functions to a management company. Tasks such as pulling reports for financials, processing HOA dues, and paying bills are all handled by the financial management company. They can also offer guidance on decisions and direction for a Board of Directors. This is a great option for an HOA that is transition from self-management as it offers an introduction to professional property management.
The last Phoenix hoa management option is Full Service Property Management which removes as much of the burden off the Board of Directors as possible, making it the most expensive type of management. Will full service management, the management company does all the same things they would under financial management, plus much more. They help enforce violations, find and coordinate with vendors to complete maintenance issues, create budgets, assist with planning meetings and work very closely with the board to assist with voting measures. As an added bonus, a professional HOA management company has a check and balances system that strongly inhibits theft from the association.
In review; most Phoenix HOA's utilize full service property management especially for the larger communities. The really small communities (10 homes or less) tend to use self-management as the work load is manageable. Interestingly a lot of HOAs that are struggling financially use financial-only management in an effort to save money however full services can really assist in getting things like an HOA dues increase passed which in the long run can help the HOA far more than the cost savings.
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