Staying Self-Managed: Misconceptions and Hidden Costs

In many community associations, the Boards of Directors believe that staying self-managed is the only way to retain their decision-making authority and current staff members while saving money by doing everything themselves. But what if it was quite the opposite?  And what are the potential impacts of taking on the added responsibilities that come with managing your own community?

The Misconceptions

Volunteering vs. a Full-Time Job

Castle Group partners with you to make your life as a Board member easier – we do not take over. A Board’s role is to establish strategy, policy, direction, and to make decisions on management recommendations. Castle Group allows the Board to focus on its primary role of leadership and oversight. We also provide metrics and reporting that facilitates the Board in objectively measuring the management function. The Board retains full authority while all the legwork is done by us so they can continue making the best decisions for the community.

Stronger Employees, Not Necessarily New Employees

We aren’t looking to change or replace your team, we’re here to augment it. Castle Group can provide the support, resources, training, backup, after-hours coverage, and benefits to make them a stronger management team for your community. Your employees will no longer feel like they are on a deserted island, resulting in a happier and more effective staff and reducing turnover.

Associations also don’t need to be in the employment business. Castle Group can provide a full team of trained professionals and take on all of the human resources, payroll, training, insurance and other employer responsibilities. This includes a talent acquisition team if needed. It also removes the Board from the position of having to direct and/or discipline personnel who work in the community they live.

Hidden Costs

Loss of Information – The Board can and often does change every year. Whether a Director moves away, gets tired of volunteering, or his/her term expires, it is very difficult to run any organization without consistency. Castle Group provides continuity during transitional periods. We provide a central location for records and information, hold Board orientations with new Directors to review your governing documents and their new roles, as well as update them on old and new business.

Strained Relationships – As a Board member, you may have to handle unpleasant topics with your neighbors. This can result in letting issues fester in order to avoid those unpleasantries or creating rifts between you and your neighbors to carry out your fiduciary duties. Castle Group provides a buffer between the Board and residents while ensuring governing documents are honored.

Penalties, Legal Fees, and Other Costs to Fix Mistakes – The Board is comprised of owners who care about their community, volunteering their time and energy to ensure the association is run optimally. In most cases, the Directors are experts in their own fields, but not necessarily in community association management. Castle Group is a team of specialists that can bring industry best practices to your community, ensuring your association stays in compliance with the ever-changing regulatory environment. With Castle Group, communities will also benefit from a fresh, professional and unbiased perspective – we don’t live in your community, allowing us to promote consistency and fairness in applying rules, as well as find solutions to longstanding or recurring issues.

Third-Party Costs – Castle Group often saves communities from having to outsource various services. Associations benefit from Castle’s in-house IT team and property accountants. They are also afforded the use of Castle’s state-of-the-art technology in the areas of communication, web applications, security, finance, reporting and resident convenience.

In most cases, Castle Group provides a higher level of service at a lower cost. We have bulk purchasing arrangements and volume discounts with many providers. These savings are passed on to the association with no benefit to Castle. Moreover, while managing hundreds of communities, we can benchmark your expenses compared to those of similar associations and help control costs.

If you’ve always been self-managed, it’s a clear indication that you should at least speak to a management company to see how it can benefit your community. Change may be scary, but along with your other fiduciary duties as Board members, you owe it to yourselves as volunteers and to the community you serve to find out how your community can operate more effectively and reduce its expenses.

 

 

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self managed community, self managed condo, self managed hoa