The HOA Board Quarterly Summer 2019 Issue #21 | Page 8

PORTFOLIO MANAGER: I WANT IT ALL! I WANT IT NOW! (AND, I WANT IT FREE!) by John Barnes, President, CCAM Perhaps one of the most misunderstood concepts in community association management is that of a “portfolio manager”– the use of a single manager to simultaneously manage a number of different communities, usually unrelated to one another, from a location that’s not on-site. For many homeowners associations, this is the most affordable way to secure a professional community association manager. Portfolio management is distinctly different from on-site management, and it’s important to understand how portfolio management is intended to work. Communities often do not have enough day-to-day activity to justify the use of a full-time, on site manager. The popular alternative is the portfolio manager–a professional manager who handles multiple communities, attending to multiple issues, for multiple clients. Comparing the two provides a good opportunity to examine the realities and benefits of portfolio management, versus on-site management. There are at least five employees, at a minimum, from the management company who are working hand-in-hand with the manager, who are also providing services for the HOA: Portfolio Manager (PM) The Portfolio Manager communicates regularly with the Board of Directors, owners and Vendors. The PM attends walk-throughs, vendor meetings, and board meetings, etc., and follows up on all related activity. Portfolio Managers also attend industry trainings and workshops, and continuing education programs. Additionally, if the PM is certified – and ideally they are - they will attend classes periodically to maintain their credentials. Portfolio Managers Assistant (PMA) The assistant provides consistent customer service to association owners. From creating work orders for maintenance, to landscaping issues, to addressing community violations, coordinating gate keys/ remote purchases, architectural application processes and (almost) anything else-the PMA is the point of contact for the owners. Bookkeeper The bookkeeping department processes owner payments, pays the HOA’s bills, assists owners with payment options, pursues collections on delinquent accounts, helps buyers and sellers during the escrow process, assists new owners with intricacies of the community, etc. Management Company Owner The owner of the management company often serves as the Chief Executive Officer (CEO) and/ or the Chief Financial Officer (CFO). An involved owner provides support to all of the above employees and departments, attends regular staff meetings with each team to ensure that all aspects of the management-client relationship above are met consistently and successfully, and makes themselves available to all board members, owners and business associates. 8 | The HOA Board Quarterly | Issue #21 | Summer 2019 One prime factor in choosing the portfolio manager option is cost. An HOA is generally much better served financially, in spending (hypothetically) $1500.00 per month for the bulk services of portfolio management, rather than paying a full time, onsite manager or management team. This is especially true if-as a typical association-the HOA does not generate significant daily activity requiring the efforts of a full-time onsite team. At $1500 per month, the coast of portfolio management is $18,000 per year, while a single onsite manager and assistant would easily cost four times that amount-just to start! Portfolio management companies are generally able to provide a community the on-site experience, for a fraction of the cost. So what can a board expect, and how can a board make portfolio management work for them? A good portfolio manager is an expert juggler. They are able to prioritize every issue that comes in from every community, and make sure that they are all handled in a reasonable timeframe. Emergencies are handled immediately; longer term projects might be put on the burner to simmer for a while. Still, a portfolio manager can complete all of the work needed for an HOA in a competent and timely manner. In any healthy relationship, each partner understands the responsibility of the other. In the case of portfolio management and a board of directors, it also requires some understanding. It is reasonable for the board to contact the portfolio manager and make a request, with the understanding that-if it’s not an emergency-it will take a reasonable period of time. Communication is key in letting the manager know something is an emergency and is important. However, boards should trust their manager to use his or her best judgment to determine when and how to complete the project, within a reasonable time frame. With portfolio management, t’s important to understand that projects may take slightly longer to complete- but, they will get done. Portfolio management can dramatically reduce HOA expenses. Portfolio managers are experts in prioritizing the needs of multiple clients and making sure that individual communities are managed properly and effectively at a very reasonable cost. This option is an excellent way for communities to retain the services of a professional manager without breaking the bank. Contributed by John Barnes, CCAM, President West Coast Management Firm, Inc. 619.704.7390 office 619.704.7394 [email protected] or visit them at www.westcoastmanagement.com