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Management & Associates
"Next to choosing your home, your biggest and most important decision will be choosing the company that  manages the community of which that home is a part.”

 

M  A  N  A  G  E  M  E  N  T

 
Communication + Perception = Performance
by Dominick Scannavino, President of Managment and Associates
 

R

emember the last conversation at the pool? “I was told that I had nothing to worry about when I purchased my home. I was told that the ‘association’ would take care of everything. It was maintenance free and the manager would see to whatever my needs were.” “Who is the board of directors? What is its function?” “I’m tired of my maintenance fees continually increasing.”

These statements are made by individuals who have been told one thing and perceive another.

Community living is a concept that is foreign to most first –time unit owners and often there is difficulty in accepting the fact that compliance with rules and regulations is necessary for the operation of the association and the management of the community. While most unit owners can deal with the problems that arise in relation to their individual units, they are usually unprepared for the problems and expenses relating to the property as a whole.

To create a structure in which to achieve the purpose of communal living, the association takes on a business role and a government role. It must provide for the physical maintenance and operation of the shared property. It must provide for services. It must collect funds through assessments to carry out its work. And it must provide for enforcement of rule standards. It maintains a program of communication and participation of owners through committees, volunteers, newsletters and social interaction.

CAI Research Foundation’s mini-survey on “Satisfaction with Management” revealed some vital statistics. Of the more than 600 associations that responded, 30 percent utilized self-management form (volunteers), 30 percent employ their own management staff and 40 percent utilize contracted management firms. Only one-fifth of all responding associations had a change in the type of form of management within 18 months prior to the survey. However, nearly half had a change in management personnel during the same period. The single most important reason given for dissatisfaction with management was “poor performance.” Their expectations derived from past experience served as a basis for the action. In other words, the changes were a result of their perception of communal living.

Every aspect of community association operations, service and rules involve some aspect of communications. The more effective and useful communications are through its management and its operations. Good communities support good decision-making by assuring informed decision makers on all levels. This assures harmony in the community. The boards of directors, the management, the contractors, the consultants, the advisors and the owner all have responsibilities toward effective communication.

If Mr. and Mrs. Unit Owner expect one type of service, but receive another, it’s questioned. It is the role of the management to communicate the reasoning to the unit owner. A community’s success hinges on effectively dealing with the human aspects, which include involvement and participation.

Perception + communication = performance. Communication in association is assuring that owners and residents have ample and effective opportunities to both receive and provide input. There are a variety of options available to association leaders and managers to facilitate good owners and resident perception through communication. All of the parties to the community association must know and understand the ground rules within which the association must operate.

How is some of this accomplished? 1) Periodic financial reports. “It was maintenance free, why am I paying so much money?” When the maintenance fee check is written, the perception is the fee is “dues” to be a member of the association. This conflicts with the reality, which is that the check is for maintenance fees, which consist of an equal share of the revenue to pay for and maintain the common areas. The financial reports must be shared with the unit owners and communicated in a format that is easy to understand.

“I was told I had nothing to worry about when I purchased my home.” This is true. However, what was not communicated was the responsibility to understand who does what in the form of maintenance. What is owner responsibility? What is association responsibility? And who pays for what? This was left up to Mr. and Mrs. Unit Owner to understand by having to read a very legislative set of documents, which supposedly explains the responsibility that even attorneys find tedious to understand. Good communication with residents helps to support social harmony and can be accomplished with informative packets for new residents in a community. A summary of activities by the board, the manager and the committees along with any input from residents in the form of periodic newsletters is also a good means of communications.

Operating and reserve budgets are other tools necessary to communicate the financial goals and objectives for the association. (This subject is worthy of an article all by itself.)

Good communication in associations is a complex, interactive system of two-way correspondence between the management and the resident, and is necessary to provide the information for proper perception.








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