This Week's Q & A

This Week's Question

May 10, 2004

By Nena Groskind

Q: The board in my small (15-unit) condominium is debating what to do about the contract with our management company, which is about to expire. Some trustees want to renew, but others agree with me that we should take over the management ourselves and eliminate an expense that represents nearly 20 percent of our budget.

A: Your argument is reasonable and would make sense for many small associations, but not for all of them. Self-management is absolutely the right choice in an association where the owners have the desire, the commitment, and the skills required to handle the work. It can be a disaster where owners lack any or all of those essential traits.

Very small associations my not have the option of hiring outside management, because most management companies prefer not to handle associations with fewer than 15 or 20 units. With relatively few owners to share the expense, hiring a professional manager may not be cost-effective even if it is an option. But owners planning to take the self-management route should assess themselves and their capabilities carefully. It is important neither to over-estimate the owners’ abilities nor to underestimate the scope or difficulty of the management tasks.