Interesting Q&A Regarding Condo Management

The Miami Herald, in this article, focuses on condo management with a Q&A session with the Continental Group’s Gene Gomberg. South Florida-based Continental, by the way, is like the Wal Mart of condo management. They are the largest management company in the country. The interview sheds light on some of the company’s challenges and expectations as a result of the boom. The condo management sector is expected to grow significantly due to the excess in condo construction.

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6 Comments

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6 responses to “Interesting Q&A Regarding Condo Management

  1. brad5720

    As Gomberg notes, it will be interesting how management companies will address the different “clients”–renters, investors, end user owners, and developer, and how all interests will be properly accounted for. With so many anticipated absentee owners and developer-held units, the management companies face many issues regarding day-to-day management.

    There is a strong reason mortgage lenders frown at investor-majority projects, and I think this inevitable result will hurt many new condos and mayresult in poor management, depreciated overall value, budgetary problems, etc.

  2. Management companies base their dealings on Association Board policies. Typically, they only deal with renters for screenings and covenant enforcement issues, since they are usually associated with negligent activities. So long as absentee owners pay assessments, their presence, or rather, lack thereof, does not affect community management.
    Mark my words Brad, the property management industry is going to blow up.

    • Yet, I’m so wary that this is merely a retaicon to the record low interest rates. Who’s buying?? Is it investors? First-time? If it’s investors, what’s the cap rate? I don’t think we can rejoice that prices and transactions are rising without a lot more data. We still have a home ownership rate significantly above historic averages, and an aging population that will be downsizing for quite some time to come. I fear that the low rates are causing investors to jump on the bandwagon, only to find that they’ve paid too much for their investment (a continuing bubble)

  3. brad5720

    I agree that industry will see an explosion in the future. I just foresee problematic issues between, for instance, a developer-controlled Board and primary owners when the turnover may take years given the slowdown in sales/unit closings. Property management must serve a liason between the developer Board and the unit owners, and you know the relationship among all parties will be strained, especially in the more high-end luxury buildings where your typical “condo commandos” are more likely to reside.

  4. You’re right, management companies act as the liaison between what are often parties at odds. The tension is usually associated with faulty building machinery (i.e.: gate, entry system, irrigation, etc.), shortcomings in unit space and features (i.e.: plumbing problems, less sq. ft. than legally described, etc.), and unplanned assessment increases (i.e.: improperly budgeted operating expenses, insurance overages, etc.). Management should be a resource to both the developer and the unit owners in all these respects, but if a transition is taking too long, then you know there are going to be problems, and if the issues pile up, then, management company aside, that’s when you call the lawyers.

  5. roger

    THese management compaines are a joke. It’s better to be self managed. my last building hired a company called AKAM. They have inexperienced managers and all they want to do is spend your money and give out work to their “friends”. I think they are getting a cut out of everything. I’m filing with the BBB and hopefully they will stop doing this to poor older residents.

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