We’re back again in Uptown New Orleans, showcasing property management in front of a twelve-unit condominium development. This property was converted into condominiums in 2010. This is an example of the more than seven hundred condominium units that were part of a redevelopment wave that took place over the past decade throughout New Orleans.
We get asked questions every day by prospective buyers or current owners of condominium units about what to look for in an association that helps them find the right fit for them and what pitfalls to avoid. Our answers to those questions start with knowledge so you understand what you are getting into or already part of. This makes the management operations of the association critical to its success, your enjoyment, and your condo valuation when you are ready to sell.
We can break down the management operations into three distinct areas: administrative services, financial management, and property maintenance.
Let’s talk about financial management
It does not matter how small or large the condominium association is, the root of a shared development is the shared expenses of its upkeep and maintenance, so following the money is a critical function. And this all starts with a budget. Preparation of the annual operating budget and the correct allocation of the fees to each owner, when done right, allows for a consistent level of financial commitment by each owner. When done wrong, condominium fees are constantly changing and this uncertainty makes valuation challenging for sales. Proper collection of and accounting reporting are some main reasons association members prefer third-party management to provide an auditory level of assurance that the money is being collected from all members and used in the manner set forth in the budget to maintain the property.
Another key facet of financial management is the single, largest expense for any condominium association, insurance. Making certain that your association is properly insured, payments are made timely and any claims are filed and pursued until proper adjudication are highly skilled operations and those that management firms excel in.
Whether looking to make a purchase or already owning within a condominium association, reviewing the financial records, balance sheet, income statement and budget are critical ingredient to understanding the strength or weakness of that entity. Questioning inconsistencies or differences is your right and necessary for your understanding.
The financial management services are just one of three parts to a condominium association, and each is equally important to understand for your purchase into a condominium association or the continued management of the association you already have purchased into.
Keep following Certain Management to learn more about what you need to know about condominium associations in the Greater New Orleans area.
