A financial property management company deals with anything financial for an association. They work with the board of directors that oversee the association and keep them up to date on the financial status of the neighborhood or complex. They handle all of the paperwork and mailing involved with billing, and they make sure everyone is paying their dues on time. It is also important that they make sure everyone is paying in full.
If a homeowner is not paying in full, or is falling behind in association fees, the financial property management company will keep these records up to date and will enforce late fees for the lack of payments. After a certain amount of time has passed, they will be able to take specific procedures at enforcing a punishment to the homeowner. The billing process can get very complicated in large neighborhoods so it is important to an association to use this type of Management Company.
Another major aspect of this type of management service is they come up with how much homeowners should be paying. They do this from creating budgets of how much maintenance, security, staff, and upkeep costs the association. After they file these reports, they come up with a proper amount that a homeowner should pay. This payment keeps the neighborhood running, as it should, which makes the board of directors happy as well as homeowners. Semi annual and annual reports are important to have on file in case a resident questions the cost of the association fee.
A lot goes into the finances of a neighborhood outside of maintenance and upkeep. If there are future plans of upgrading the amenities of a neighborhood, a budget has to be made for this project. It will then have to get voted on by the board, which speak for the homeowners. Once a budget is approved, the management company will update the amount homeowners must pay, and will bill accordingly. These companies also keep track of all invoices used from services to prove where money is going.
Another important factor of having a financial property management company is that they keep everything ready in case of an audit. A tax audit and having all files on hand is very important in the success of the association. This process would be very unorganized with out the proper personnel dealing with keeping track of invoices, files, payments, budgets, and everything that was billed.