 The purchase of a home represents the largest investment most people will ever make during their lives. Protecting and enhancing your home's property value is one of the main goals of a community association and a key driver of Associa's services and programs.
Determining property values, however, is not an exact science. Property values are often assessed by the marketability of the home and its surrounding community. Communities have a tendency to develop reputations.
Some are well maintained, look great, and are valued by their residents for providing vital and efficient services. Their residents are happy and enjoy the environment they live. As a result, these communities often receive greater property value appreciation than others. The reason for this can usually be attributed to good community management.
So what is the real value of good management? And on the flip side, what is the cost of poor management? Let's use an example to explain the differences.
If a community has 100 homes, each with 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 rise 5% instead of 4% per year, then the property values achieved through good management would be $350,000 higher than if they were managed in an average manner ($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 the same $350,000. Ironically, some communities consciously choose to reduce the quality of their services, ruin the appearance of their buildings or grounds, or switch to a cheaper management company in the assumption that they will save a few dollars.
Unfortunately, a savings of five or even ten thousand dollars in management fees or services, as shown 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's value. Is your community making the same mistake – penny wise and pound foolish?
In addition to the day-to-day care that Associa provides to each of the communities we manage, we also look at the bigger picture. We not only serve our residences with individual attention and integrity, but also protect the value of the homes we manage.
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Associa
P.O. Box 600223
Dallas, TX 75360-0223
Phone: 800 808-4882
Fax: 214 953-1886
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