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Based on Condo BI comparison of condo fees and market values of self-managed condominiums and condominiums managed by condo-management companies are very different. Surprisingly, those indicators do not depend on quality and quantity of amenities and inclusions. What they depend on?
It has been sad that condo fee should not be low because it might lead to condo building deterioration. In past articles, Condo BI was trying to answer the questions,
Majority of condo owners might not understand why some of the condominiums are perfectly maintained collecting very low condo fees, and some of poorly maintained condominiums collect high condo fees.
How self-managed condominiums spend much less money maintaining higher market value of condo owners’ properties.
2 groups of condominiums were analyzed:
Condominiums managed by condo management companies.
Self-managed condominiums.
Why condominiums hire management companies to run a condominium? There are 3 main reasons:
- to save time and have a peace of mind,
- to save money,
- to maintain a high level of building maintenance because of expertise.
The result of a condo fees and market value comparison between professionally managed condominiums and self-managed condominiums was very surprising.
A group of self-managed condominiums has 18.6 % lower average condo fee per sft per month and 9 % higher average market value than a group of condominiums managed by professional management companies.
For a condominium with ~ $2 mln. budget that difference might be ~ $400,000 a year
What are the major reasons that self-managed condominiums spend ~ 19 % less and reach 9% higher average market value than condominiums managed by condo management professionals?
Does every condo management companies motivated to save condo owners money inviting independent contractors? Based on my experience, Management companies usually protect their contractors from any competition, they have
Approved List of their Condo Service Providers. Property manager are usually fighting to prevent directors to look around. And the board is usually restricted by that list.
Can the board get the best price being restricted?
Can the board get the best quality being restricted?
Can independent contractor offer the service to the board?
There is no way for directors to understand if they get the best price or a quality with such restricted choice.
But taking into account such conditions,
How would you evaluate risks for condo owners of not getting the best quality of services at higher prices?
In such situation, there is no, or limited competition between companies, low transparency, and high barriers for condo service providers that are not in the management company’s approved list.
Such narrow choice of service providers increases the risk of not getting the best prices or the highest quality of services dramatically.
A major common problem of poorly managed condominiums is high risks of a conflict of interests between condo owners that pay the money and condo management that spends the money.
It is clear that the process of Condo Service Providers selection must be transparent and competitive for all directecdtors and owners!
connects condo directors with the best independent condo service providers, and provides much wider choice of professionals that are able to make a positive difference in your condominium.
Below is the list of Condo Management companies and independent service providers. This is NOT a case of paid advertising!
The Companies listed bellow are the first major contributors into Toronto Condo Services’ market transparency, fair competition, equality and market balance! They are striving to compete based on QUALITY of Services & PRICES, and they might make a great difference to your condominium’s financial efficiency!
10 the First and Most Active Condo Service Providers –
Condo Security Services Companies:
Ultimate Security Services
Cancom Security Inc
Interforce security
Sentinel Security
Condo Concierge & Innofit
Best Guard Security Inc.
Knights on Guard
Taslan Protective
Property Management Companies:
Cape Management
Newton-Trelawney Property Management Services
Do you want to save ~ 19 %
of condo owners’ money and improve your condo building?
Just post a short description of your needs at
Open Fair Tender to hire the best INDEPENDENT Service Providers,
it is FREE for condominiums!