Condos, with their unique blend of community living and individual ownership, are quite tricky to manage. It can sure be overwhelming, but it is a highly lucrative market with growing prospects in America. According to a 2024 report by the Foundation for Community Association Research, 30% of the US population resides in community associations like condos and planned cities.
Clearly, investing in condos is an interesting opportunity. In this article, we will first look at some basic requirements you may need to fulfil to manage a condo in USA. Next, we will look at best business practices that will help you up your game in condo management.
Legal complexities of condo management
Licensing requirements
To begin with, being a property manager requires some basic criteria, like being above 18 years of age, having US citizenship, and at least a high school diploma. Next, you need to check the requirements in your state for licensing and qualification to be a property manager.
You might be required to take a course for a certain number of hours, and/or a licensing exam. These procedures are meant to help you prepare for your career as a property manager, at least in theory.
Laws and Regulations in USA
When it comes to the law, there are a few things you need to keep in mind. The first one is the Fair Housing Act, which penalizes property owners/managers for denying housing to a potential candidate based on gender, race, etc.
Secondly, it’s important to read up on landlord tenant laws. These are basically about tenants’ right to privacy, basic standards of maintenance, etc. For example, in many states, if you enter the condo without prior notice, a tenant can sue you for violating their right to privacy.
Also make sure to read up on credit reporting laws, which is basically about safeguarding your tenants’ data about their credit history. Typically, in the tenant screening process, you ask the candidates to get a credit report from an agency. Now this report should not land in unauthorized hands, because it will get you into legal trouble.
Now that we have covered basic legal requirements, let’s look at a few simple tips on how to survive as a condo manager.
Staying ahead in Condo Management
Sustainable growth
There is a common misconception that in order to be successful, a business has to keep growing. Because of this overemphasis on one dimensional growth, especially in the arena of property management, people forget to pay attention to how the business is being impacted in the pursuit of more projects, investors and capital.
For example, say you are rapidly expanding your property empire. You hire more people, take on more properties for renovating and renting. But now your services have lost personal touch, your tenants complain you don’t respond to them quick enough, and before you know it, vacancies are on the rise.
That’s where sustainable growth comes into picture. Before you look forward to new goals, assess whether your current operations are smooth, whether you have the energy and human resources to take on more work. If you stretch yourself too thin, you are going to be exhausted and disappointed in the end.
If possible, keep your team limited to a few executives who make smart decisions. Hire consultants and freelancers for other work. That way, even if you have to shift things around in uncertain times, you will find it easier to adapt.
Work with data
‘Data-driven decision making’ is a buzzword that everyone wants to use these days. But if you actually understand it, there is a ring of truth to it. Human judgment is never fully accurate, we always have hidden biases, and very often we don’t have all the information.
So instead, we turn to technology. We turn to artificial intelligence powered-tools that crunch the numbers for us and give us deep insights into our business. For example, a data analysis tool can tell you that maintenance issues crop up during certain months of the year. There you have it, now you can engage in preventive measures right before this problem period starts.
Data analysis tools are available with different pricing structures on the internet. If you use a property management app, especially if you are paying subscription fees, you will have access to such tools and people who can help you use these tools effectively.
Embrace change with technology
Property management is not really for those who like things status quo. Real estate is all about people and their housing needs. There are many factors affecting real estate trends, like demographics, climate change, political currents, economy, etc. None of these factors are stable. In fact, some of them are highly volatile.
If you want to keep up with change, technology is your answer. How? When you integrate technology in your daily operations, most of your tasks become automated. That leaves you with more time to focus on the big picture stuff, like anticipating and adapting to change.
The day to day of condo management
We have already looked at specific ways of staying afloat in the competitive condo management business. Now, let’s look at some day to day operations that you must take care of as a condo manager.
These are the sorts of tasks that you can automate using apps and spreadsheets. At the same time, these are the things that can make or break your name in the industry. So even if you don’t have the time to look into each task individually, make sure you delegate well and monitor regularly.
- Preventive maintenance- Check the plumbing system, electronic appliances, etc. regularly to prevent leaks, clogs, and accidents in the future.
- Tenant screening- Make sure you screen tenants for credit score, criminal record and eviction history.
- Security measures- Ensure tight security, with CCTV cameras, digital locks and alarm system, and in-person security personnel at the property.
- Vendor contacts- Make connections with a network of vendors for maintenance, renovation, upgrades, etc.
- Handling disputes- Be ready to handle tenants when it comes to maintenance complaints, untimely payments, unauthorized guests, etc. Don’t engage in personal attacks, approach the conversation with a calm mind and put forth your arguments assertively
If you are a property manager dabbling in condo management, this is a great place for you to start learning. Once you are confident about your market research and professional capacity, you will be well on your way to become a successful condo manager!
