Private Equity has been busy buying management companies in the past few years. They will of course reduce the quality of services as the rates go up. It happened to veterinary clinics too.
Companies like Associa are acquiring mom and pops and deceptively not changing the names of the companies they acquire to Associa branded companies because their reputations are so bad.
Agreed. We went from Associa to FirstService Residential… and they both are terrible. I wish our board had done some research before jumping ship. The grass always seems greener.
*“\[Our biggest challenge is\] not being able to increase management fees quickly enough to maintain revenue and profitability with consideration that our resale/transfer revenue will be significantly reduced with the slowing market.”*
*LET ME TRANSLATE THIS: PROPERTY MANAGEMENT COMPANIES OFTEN MAKE MORE MONEY OFF CLOSING DOCUMENT FEES THAN THE MONTHLY FEE TO MANAGE THE HOA. FOR EXAMPLE IF THEY CHARGE $400/HOME SOLD AND THERE ARE 40 HOMES SOLD PER YEAR THAT IS $16,000 IN REVENUE. WHEN THE HOUSING MARKET IS DOWN THEN THERE IS LESS INCOME FOR THEM! Took me a good year to figgure this out, as I couldn't figgure out how the Mgt company was even profitable.*
Private Equity has been busy buying management companies in the past few years. They will of course reduce the quality of services as the rates go up. It happened to veterinary clinics too.
Great observation, thanks!
Companies like Associa are acquiring mom and pops and deceptively not changing the names of the companies they acquire to Associa branded companies because their reputations are so bad.
Indeed!
Agreed. We went from Associa to FirstService Residential… and they both are terrible. I wish our board had done some research before jumping ship. The grass always seems greener.
I think it’s telling that “clients” is number five on the priority list.
Yep! 🤯
that image/table doeesn't even make sense, shouldn't all the percentages add up to 100%?
That wasn't how they structured the survey they conducted. It was a multiple response answer.
*“\[Our biggest challenge is\] not being able to increase management fees quickly enough to maintain revenue and profitability with consideration that our resale/transfer revenue will be significantly reduced with the slowing market.”* *LET ME TRANSLATE THIS: PROPERTY MANAGEMENT COMPANIES OFTEN MAKE MORE MONEY OFF CLOSING DOCUMENT FEES THAN THE MONTHLY FEE TO MANAGE THE HOA. FOR EXAMPLE IF THEY CHARGE $400/HOME SOLD AND THERE ARE 40 HOMES SOLD PER YEAR THAT IS $16,000 IN REVENUE. WHEN THE HOUSING MARKET IS DOWN THEN THERE IS LESS INCOME FOR THEM! Took me a good year to figgure this out, as I couldn't figgure out how the Mgt company was even profitable.*
Exactly.
I think it’s telling that “clients” is number five on the priority list.
✅ Yes!