Self Management Cost study

Community of Bayview Estates

Self Management Cost/ Benefit Analysis

Cost of doing business

1. Full Service Third Party Cost (annualized basis)

   1. $24,000 management fee

   2. $1250 tax preparation

   3. $2,500 postage office expense

   4. Total Net cost- $27,750 per year/ $86.44 per home

2. Financial Only third party cost

   1. $12,000 management fee

   2. $1250 tax preparation

   3. $2,500 postage/office expense

   4. Total Net cost- $15,750 per year/ $49.06 per home

3. Self Management cost

   1. $4,800 management cost

   2. $0 tax preparation

   3. $1,000 office/postage expense

   4. Total gross expense $5,800 per year/ $18.06 per home

   5. Average of 20 home transfer fees ($200 per home) in additional passive income; $4,000 per year.

   6. Net cost to the community for self management $1,800 per year or $5.60 per home.  

Self Management costs the community 6.4% of a full service third party management contract and about 11% of a bookkeeping only relationship. The assessments on each household is $68.38 less per year by being a self managed community.

Other Benefits

• Prompt and accurate reporting of financial reports

• Increased accountability to homeowners through direct election of those responsible for management.  

• Homeowner communication with management is consistent and timely, emails and calls are answered or returned with a 4 hour average response time.  Problems are heard through regular open meetings and multiple avenues of communication including in person open meetings, emails, the website, phone calls, and in person interactions.

• Community building is prioritized and balanced with finding savings that a management company would not be incentivized to find.

• Additional revenue streams made available that would be retained by a management company, allowing for events and amenities that would not be available without the additional income.