Condo Media - November 2017 - 49

CONS TO SELF-MANAGEMENT
n Board Burnout
There is only so much time board members or committee chairs can devote to
managing the community. Any more
time would be both unfair and could
result in burnout. It can be difficult to
ensure everyone in the community is
doing their fair share. As communities
age, so do the issues needing to be
addressed expand to avoid deferred
maintenance and untimely resolution
of problems. Finding the right community members with the proper technical
background to manage these projects
can be a challenge.
n Rule Enforcement
It can be difficult for neighbors to enforce rules on one another. Whether
it be levying a fine or seeking overdue
assessment payments, this can often
be more effectively done by third parties such as a property manager. It is
often more difficult for self-managed

communities to handle the hiring
and firing of personnel and service
providers.
n Lack of Continuity
Unit owner and board members
come and go. Their leaving can have
a significant effect on a community's
management efficiency. It is also
difficult to hold people accountable
when they are doing volunteer work.
Self-managed condos are notorious for
not keeping good records compared to
a professionally managed community.
In addition, self-managed organizations often lack adequate safeguards
for preventing fraud or self-serving
management practices.
n Marketability
Buyers' due diligence efforts are
becoming more invasive. Not only
will condos be asked for past financial
data, board meeting minutes, etc., the
management methods may also be

questioned. Self-managed condos often
do not present the level of security or
confidence for future performance
needed by some buyers in the market.
This may result in fewer buying offers
or discounted unit prices.
As with most management decisions
it is always about the bottom line. With
probably the most important 'PRO' argument being saving money, the solving
of the 'CON' issues will cost money and
in many cases the extra cost pushes the
money-saving goal to the sidelines. Selfmanagement is not for everyone, just as
community living is not for everyone.
Communities with more than 12 units
should carefully consider the issues associated with self-management.
n JACK CARR, P.E., RS, LEED-AP,
IS SENIOR VICE PRESIDENT WITH
CRITERIUM-ENGINEERS SERVING
ALL OF NEW ENGLAND.

Solutions geared specifically for
Condo Associations and Property Managers
*	 Capital	improvement	and	repair	loans	
up	to	$50	million
*	 Amortization	schedules	up	to	15	years
*	 10	year	fixed	loans
*	 No	personal	guarantees	required
*	 Revolving	lines	of	credit

*	 Draw	periods	for	construction	projects
*	 Competitive	interest	rates	on	loans	and	
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*	 Condo	Association	team	assigned	
to	support	all	of	your	Association	or	
Management	Company	banking	needs	

Contact one of our Condominium Association Banking specialists for more info:
Timothy	W.	Murphy
774-454-9918
Timothy.Murphy@RocklandTrust.com	
Jen	Macaluso
781-982-6566
Jennifer.	Macaluso@RocklandTrust.com

www.RocklandTrust.com/CAB
Subject to credit approval.

Member FDIC
November 2017

49
Condo Media - November 2017

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