The last issue to consider is cost.  Most companies charge a flat monthly fee at the beginning of a project…$5,000 per month for the first few phases…then charge a per door amount…$100 per door as homebuyers move-in.

Because the amount of work is similar for a small number of units at the beginning of the project compared to more units later…the management company should charge a flat monthly fee until the per door rate exceeds the monthly fee.

If the builder has asked some of the questions above, the builder will better understand where the money is being spent.

The HOA management account executive I interviewed said that her company sometimes gets underbid by a competitor at the beginning of a project…but is asked to take over these projects after the first management company has made a mess of things.

As one example, her company recently took over a project where the HOA had been mistakenly paying the water bill for the landscape irrigation of a city park across the street for 15 years…because the first property management company did not check the water meters at the annexation or turnover of each housing phase within the project.  The paperwork for the city water meter was combined with the water meters for the condominium project…which the new management company discovered during their normal checking and testing of the landscape irrigation system within the project.