 The purchase of a home represents the largest investment most people will ever make. Protecting and enhancing the property values of these homes is one of the primary purposes of a community association – and a key consideration when evaluating professional management programs.
Communities develop reputations. Some are well maintained and look great. They are valued by their residents for providing vital and efficient services. Their residents are happy, and enjoy where they live. As a result, these communities often achieve greater appreciation in property values than others. And the reason can usually be attributed to good management.
So what is the value of good management...and likewise the cost of poor management? Let’s create an example: If a community has 100 homes, and each home has an average market value of $350,000, then the total collective property value of the community would be $35 million (100 homes x $350,000). If, as a result of being well-managed and maintained, the property values within that community rose 5% instead of 4% per year, then the collective incremental increase in property values achieved through good management would equate to an astounding $350,000 ($35 million x 1%)!
The value of good management in this example would result in an additional $350,000 for the community – or $3,500 per home per year.
Conversely, if the community was not maintained or managed as well, the collective cost of poor management would equate to a loss of the same $350,000. Ironically, some communities consciously choose to reduce the quality of their services, diminish the appearance of their buildings or grounds, or select a cheaper management company in the belief that they will save a few dollars.
Unfortunately, a savings of five or even ten thousand dollars in management fees or services, in this example, would have instead resulted in the loss of $350,000.
Take a look at your own community and perform the same calculations to roughly determine your association value. Is your community making the same mistake – penny wise and pound foolish?
In addition to the day-to-day care that Mid-Atlantic provides to each of the communities we manage, we also look at the big picture. We create our services and educate our professionals not only to serve our residences with individual attention and integrity, but also to protect the value of the homes we oversee.
|
|
RELATED INFORMATION
Ready to get started?
Fill out our simple form and we'll be in contact shortly.
Start Working with Us
CONTACT
4070 Butler Pike
Suite 700
Plymouth Meeting, PA 19462
Tel: 610-834-1350
Fax: 610-834-7541
90 South Newtown Street Road
Suite 7
Newtown Square, PA 19073
Tel: 610-353-4470
Fax: 610-353-0295
25 Skippack Pike
Suite 105
Broad Axe, PA 19002
Tel: 215-643-7370
Fax: 215-643-9328
950 Town Center Drive
Suite B25
Langhorne, PA 19047
Tel: 215-752-6170
Fax: 215-752-6154
5049 Swamp Road
Suite 304
Fountainville, PA 18923
Tel: 215-348-4853
Fax: 215-348-4107
Contact Us
|
