FAQs
Why are my legacy property management fees so expensive?
Passive ownership, a physical office location, excessive charges for bags/bulbs/office supplies, expensive specialized property management software, high tax filing charges, fee based bank accounts that don't earn interest, and surprise closing assistance costs all add to unnecessary cost.
We simplify our approach and pass the cost savings to you. We are active owners who work in our home office while using the latest free/low cost cloud services (that are also transparent - you own your data). Your reserve funds will be in interest bearing accounts. Garbage bags are charged at cost. Tax filing is included in the management fee.
Cost savings have been as high as 30% of the legacy HOA management fees paid. Contact us to see how much we can save you.
Why are your fees lower?
We offer a simplified service level that aligns the incentives of the HOA and property manager. Our pricing is transparent. Tax filing is included. Reasonable fees for closing assistance.
We've taken many of the fixed costs out of managing a property management company. Have you heard about rising rents? Since we live in town, we don't need to have a physical office (along with utilities, property tax, and the cost of insuring an office). Our team members in the field also don't need a dedicated space. Working remotely like this allows us to access unique talent. While we are digital first, we don't use expensive, complicated legacy software to run our business and prefer new, cloud-based options.
Not only that but given our experience at some of the largest companies in the world, we know how to run an efficient, scalable organization. We utilize technology, process optimization, and good old fashioned thriftiness to keep your costs down.
For smaller HOAs you may not be an important client to your current property manager especially during an event that impacts multiple buildings at the same time. Homeowners are forced to manage through the crisis on their own while paying high fees. For us all our clients are important.
What will you do?
Our services provide an immediate cost savings that you can use to invest back into your building.
We provide bookkeeping services, garbage/recycling, and cleaning of common areas as well as project management. We will attend your HOA meeting and be an active participant (feel free to ask anything and pick our brain). We will file your annual federal tax form and annual filing with NJ. In the course of our bookkeeping we can help you identify cost savings.
In summary, HOAs receive full service property management at an exceptional value.
For those interested in self-management, we also provide consulting to support you in your journey - contact us to find out more.
Do you provide real estate services?
Not at this time. We don't engage in any activity that would require a real estate license in the state of New Jersey. This includes listing, renting, showing, and negotiating real estate. We also don't provide tax, legal, or investment advice.
Why shouldn't we move completely to self-management?
There are a number of reasons why it may be beneficial to have a third party manage some parts of the HOA:
1.) Outside perspective during meetings with a broad perspective on how other HOAs manage their properties
2.) Prevent misuse of funds by an individual property owner. We are fully transparent and board members/officers can review financials at any time
3.) Continuity through ownership changes. History can get lost and new owners may not want to be as involved as the current ownership. Also prevents overly controlling new owners having an outsized voice. We are fair and inclusive
4.) Complex regulatory requirements. There are a number of requirements for HOAs from federal, state, and local entities - do you know them? How confident are you that your fellow HOA board members are on top of them? Let us put your mind at ease
5.) Network of local resources. A property manager will have relationships with local contractors and vendors for HOAs. Since these relationships extend beyond just the HOA, vendors have an interest in maintaining good relationships. We don't take kickbacks from vendors so while we are agnostic to vendors, we do have some that we think do a good job. They like us too since we don't ask for a portion of their profits
6.) Documentation assistance provided at closings. Timely and accurate communication between buyers, sellers, legal counsel, title company, and real estate agents. It can be overwhelming or you may not be sure what to fill out. This is routine for us
7.) Repair or capital improvement project? We've done them before so we can approach the project in an efficient and effective manner all while keeping you informed
How do I switch property managers?
The process is quite easy:
1.) Sign management agreement with Mile Square Property Management, share names of current officers of HOA, and send copy of IRS tax EIN letter, Master Deed & Bylaws
2.) HOA informs previous property manager according to terms of their management agreement (typically 30 days notice but we've seen much longer contract periods with narrow notice windows) and introduces us
3.) We will file required government filings, open new bank account, and get files & funds from legacy property manager
4.) We will setup maintenance (garbage/recycling and common area cleaning), work with your vendors to identify cost savings, contact insurance brokers to renew/reassess your property, casualty, and flood policies, and proactively start to work on ways to improve your building