The Value of Management

The bitterness of poor quality can last far longer than the sweetness of a low price: The quality of your property management company dramatically impacts operating costs, the quality of life for the residents, and  appreciation of property values.

Communities develop reputations; some are well maintained and look great, while others are allowed to slip away as they age. Well maintained communities have happy residents who enjoy where they live. Potential buyers are drawn to these same benefits.  As a result, these communities often achieve greater appreciation in property values than others. Community aesthetics can usually be attributed to how well a community is managed.

So, what is the value of good management and the resulting cost of poor management? Consider an average market value in a neighborhood of 100 homes to be $400,000.  The collective value of the homes is $40 million. If well managed and maintained, the property values increased 5% instead of just 4% annually, the incremental appreciation for the neighborhood would be $400,000.  Conversely, poor management and maintenance could deprive the homeowners of this advantage.

Unfortunately, a small savings in management fees or services would have resulted in limiting the potential return on the resident’s largest investment.

At Shaben & Associates, we keep this “big picture” in mind everyday in the communities we manage.  We provide all of our services with individual attention and integrity, but also to enhance the value of the neighborhoods and homes we oversee.