Condominium management is comprised of three primary functions: association governance, stakeholder management, and property management. We have explained each in a bit more detail below:
Association Governance: Condominium associations are established by declarations and governed by bylaws. The bylaws set forth conditions, covenants, restrictions, and rules and regulations that govern how the association should operate. Condominium associations are also heavily regulated by local and state laws. Thus, it is crucial for a condominium management company to be able to comprehend, administer, and comply with declarations, bylaws, and condominium laws.
Stakeholder Management: Almost by definition, condominiums involve many unit owners who jointly share in the ownership of the common areas. Often, there are different uses within the condominium property such as office, residential, retail or even a cellular tower. The various owners have a financial stake in the operation and ownership of the condominium property, and must peacefully coexist as governed by a declaration, bylaws and condominium laws. The property management company is in the center of this dynamic, and has to maintain positive business relationships with everyone to ensure fair and equitable administration and the ongoing functional operation of the property.
Property Management: This covers a broad spectrum of disciplines and functions. It encompasses all facets of operating, maintaining, and overseeing a real estate property, to include all buildings, building systems and equipment, and other improvements on the property. It also includes minor and major capital improvements, as well as accounting, financial administration, and budgeting. Insurance coverage and claims, and risk management are important components too, along with being a steward all current and historical property documents and records. The extent to which operation and maintenance responsibilities are conducted within each condominium unit depends on the governing documents of the condominium.