When my partner and I started Beanstalk Real Estate Solutions, we were laser focused on building an amazing boutique Detroit firm that specialized on commercial real estate management, leasing, and brokerage. Our mission was to build a multi-disciplinary team that could bring in all the right partners to create value for property owners through design, experience, and technology. We knew our lane.
One year in, we were approached by a prominent downtown condominium homeowners’ association looking for something different in a property management company. The very idea of managing condominiums was show stopping for us. Today, we love the condominiums and boards we work with.
We had never even thought about this path and had zero experience. Our peers told us to run the other way and steer clear. They said the co-owners that make up the home-owner association (HOA) boards were always at odds, would not listen, and had no idea how to manage real estate. But we were curious, up for a challenge and decided we could always back out. Being a new company, we had to be open.
So, we took on our first project in 2016 and, through very careful vetting on both parts, now manage six really beautiful, cool, high-end condominium projects. The key for us was communication and collaboration with the HOA board. We built teams around the projects and worked to define goals, budgets, and plans. We brought to the condominium sector the same processes and tools used in commercial and industrial markets. The results have been fantastic.
HOA management companies historically take on clients in bulk and service minimally with inexperienced property managers that are overworked and underpaid. It is a racket! HOA boards tell us they just cannot find good HOA management companies. Bringing in the right management company with real goals, benchmarks and tools can make all the difference. Paying the right price for the right level of service will also determine the longevity of the relationship.
It takes time to make an impact and put in place the capital plans, reserve accounts, project lists, rules and regulations, appropriate vendor agreements and other processes that make sense. Most importantly, technology is crucial for boards and managers to share information electronically for transparency, collaboration, and sustainability.
We tell our clients, “You can fire us anytime and have everything you need to manage your property.” Of course, they do not, because they just want to live in their community and not have to work – when they leave their real jobs. But we give them the freedom to choose and not be held hostage.
HOA management can be challenging not just for the projects and tasks involved, but for how HOAs have to find ways to bring ideas and people together and share information to build consensus and community. The right management company can make all the difference. The right board makes magic!