The results are often sour notes, missed words, the wrong beat and an overall lackluster performance. But if anyone ever deserved an “A” for effort, it’s the person who was able to muster up the strength to grab that microphone. And the good news is that when an amateur sings the songs of a professional, the worst that can happen is some fun memories with friends and family and an appreciation for keeping our day jobs.
Apply the same practices of Karaoke to property management and the results can be sadly different and sometimes tragic. Giving a best attempt at singing a song can result in a good laugh. Giving a best attempt at property management can result in the decline of property values, deterioration of common elements, potential life safety issues and possible misuse or loss of operating and reserve funds.
Residential property managers in the state of Illinois are trained and licensed, often employed by firms with the resources necessary to address most, if not all, issues related to a community association. However, in a daily walk through the condo world, you may regularly hear from board members how they prefer the self-managed approach in an effort to save money. The phrase “stepping over a dollar to pick up a dime” comes to mind in those conversations. Let’s get specific and walk through the issues listed above in an effort to show what can happen when an amateur tries to do the job of a professional; essentially drawing the stark contrasts between a professionally managed property and one that is self-managed.
result from this type of professional oversight is often stable to increasing property values. Real estate agents enjoy showing a property when they can highlight specific repairs and improvements that have occurred. Good management provides for the remarkable combination of being able to enjoy your well maintained property and have confidence that your investment is paying dividends.
Residential property managers in the state of Illinois are trained and licensed, often
A basic building block in the preservation and enhancement of property values is the idea that common elements need to be evaluated, maintained, repaired and replaced on a timely basis. Living in a four-season climate with varying weather patterns has a wearing effect on roofs, siding, asphalt, concrete, HVAC units and other parts of the physical plant. Even issues such as maintaining the landscaping, a club house or a pool can impact property values. A licensed property manager will often have the resources and training to evaluate and diagnose problems at the front-end of the spectrum; a point where the cost of repairs can be much less than if left untreated. A professional manager will routinely encourage an association to engage professional contractors to evaluate the condition of the various common elements in an effort to identify repair and replacement issues early on and reduce overall costs. The professional manager will often times report to a senior manager or management firm owner who is also tasked with the responsibility of keeping current on the property’s overall condition. The information obtained in the evaluation of the common elements is then passed along to the association’s board members. Through a consultative approach with the manager, a plan is developed and modified as needed with the goal of keeping the common elements in the best possible condition. The
52 | COMMON INTEREST®
employed by firms with the resources necessary to address most, if not all, issues related to a community association.
Contrast that scenario with a self-managed association where the volunteer board members are also placed in the position of being the ad hoc property managers. Pause to recognize that board members are often exceptional people who are generally the ones who step up when many others step away. There are too many conversations with property managers and board members lamenting the fact that they simply cannot find unit owners willing to serve on the board, so this is in no way meant to criticize board members beyond their decision to pass on professional management. With that being said, volunteer board members are rarely licensed in residential property management and despite a desire to do the “right thing,” there is a lack of experience and skill to match what a property manager brings to the equation. Volunteer board members have potential conflicting time obligations in addition to their board service including employment, family, medical treatments or recovery and other volunteer professional or service organizations that are demanding of their personal schedules. They also have the conundrum of living next to and around other unit owners who can be highly critical of decisions to make repairs and replacements, which can be costly and directly impact one’s personal household budget. It is understood that even under professional management, the board ultimately has control over the decision whether to complete a repair or replacement project. However, having a third party professional - who is also a fiduciary - available to advise the board as well as to maintain the timeline for when common elements should be evaluated, makes a world of difference.
A recent conversation with a manager regarding a major common element repair project for a property serves as a good example of professional value. The project involved a multiple story building and the decision whether or not to replace the existing railing system on the exterior balconies. While a majority of the board members had no appetite for taking on such an expensive project and felt that the railings were just fine, the property manager, acting as an independent professional fiduciary, suggested at least engaging the services of an engineering firm. The board acquiesced only after the manager highlighted the personal liability risks over ignoring such a serious potential life safety issue. The end result was a badly needed repair being completed and avoidance of what could have been a disastrous life safety situation.
A Publication of CAI-Illinois Chapter
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