NAICS 531311 – Residential Property Managers

The following narrative is compiled and written by Margot Murphy, Principal www.sageadvisors.biz

This small Homeowners’ Association residential property management Firm services 19 clients comprising a total of 311 units.

“There is tremendous opportunity to market small homeowners’ associations comprising up to 50 units,” according to the owner/founder of this Firm established in 2003. And since leadership can be somewhat lacking within board of director membership within the smaller residential HOAs, a new owner is at a success advantage bringing an attitude of foresight and initiative to client management. This turn-key Firm is poised to continue operations as a stand-alone business or it can be integrated into operations of a larger existing property management company.

There is distinct opportunity to scale business, possibly even doubling client numbers, since current ownership claims to actively work current book of business only 15 to 20 hours each week. Time-of-day work performance is flexible and home office operation is sufficient.

Owner of Management Firm leads the following services to clients:

• One-to-two times each year Firm coordinates onsite meetings of board members and homeowner members for each of 19 association properties they currently represent
• Firm prepares and provides detailed quarterly financial reports to homeowners, including budget -vs- actual comparisons and following year projections
• Firm prepares meeting agendas
• Firm documents and prepares meeting minutes
• Firm provides monthly HOA dues statements to all homeowners within each association. These are typically accomplished via US mail for which a new owner can automate billing electronically via email notifications
• Firm provides a welcome letter to new homeowner members
• Firm prepares and documents infrequent violation notices to members when applicable
• Firm tracks HOA expenses and income for each client via QuickBooks
• Under an Assistant Secretary position, Firm manages and oversees income and expenses of a client operating bank account for each association
• Firm has authority to bind insurance, file insurance claims, file client tax returns which are prepared by client’s CPA, hire & fire vendors and pay expenses

Client locations are located within Southern California, from Cypress, to Huntington Beach to Carlsbad.

The Firm’s owner states there haven’t been price increases to any of the associations under management for three years and clients would absorb an across-the-board management fee increase. Firm owner also states homeowner dues default rates are almost non-existent, as are homeowner CC&R violations.

A new owner must be CA DRE broker licensed and best be familiar with California’s Davis-Stirling Act of 2014.