Dispelling the Top Eight Myths About Working with a Property Management Company

The property management industry remains a mystery to many, despite its enormous size and impact.

Consider these figures for perspective: In the U.S., 24% of homes belong to associations, accumulating a total value of $4.65 trillion and generating $65 billion in assessments. Meanwhile, in Canada, the property management sector produces around $6 billion annually, with a steady growth rate of 3.4%.

Now, reflect on this: How often do you encounter billion-dollar industries surrounded by a cloud of mystery regarding their core functions, especially among potential clients?

To dispel the myths and reveal the true essence of the property management sector, let's explore and reconsider these eight misconceptions.

1. Myth: It's a thankless job, so no real professionals want to pursue it

Truth: Property management is a career embraced by thousands of certified and well-trained professionals across North America. The field requires long-term planning, project management, consensus building, relationship cultivation, and detailed financial analysis to identify cost-saving opportunities. Property management blends strategic thinking with essential people skills, offering a dynamic challenge that attracts ambitious career-seekers. Excellent property managers rely on a robust internal support system to address all aspects of the job, covering compliance, maintenance, safety, energy, and insurance.

2. Myth: The property management organization decides how to run the community

Truth: The board of directors for a community association is responsible for defining and setting community policies. These elected officials provide homeowners with Community Documents containing all rules and procedures at the time of property purchase. The property management team ensures these policies are consistently and fairly enforced within the community.

3. Myth: All property management companies are the same and only the manager matters

Truth: While having a manager who resonates with the community is crucial, their effectiveness is significantly enhanced by the resources, staff, and technology that their company provides. The distinction between working with supportive versus under-resourced companies is evident in outcomes. Leading property management firms combine skilled individuals with extensive professional resources to ensure the highest quality service.

4. Myth: Hiring a property management company means losing control over buildings and staff

Truth: Rather than losing control, engaging with a reputable property management company grants communities access to broader resources. This collaboration improves a board's ability to implement policies effectively, ultimately leading to greater organizational control and success.

5. Myth: Property management companies harm your financial bottom line

Truth: The primary aim of a quality property management firm is to streamline processes for the community. They enhance policy implementation, allowing board members to focus on policy creation. Most often, property managers analyze contracts and leverage relationships to negotiate better service fees, often offsetting the cost of hiring them. By saving time or cutting costs, a competent property management company adds undeniable value to a community.

6. Myth: We’ll be forced to use vendors affiliated with the property management company

Truth: While relationships with vendors can afford communities cost-saving benefits, property management companies cannot compel boards to choose specific vendors. The best firms present a selection based on a range of possibilities, leaving the final vendor decision to the board.

7. Myth: Boards are too unprofessional to benefit from a property manager

Truth: Many boards operate under a strict code of professionalism. As volunteers, members typically bring a high level of dedication to their roles. These efforts are further supported by property management companies that help clarify roles, provide thoughtful advice, and ensure proper implementation of board policies.

8. Myth: Small property management firms offer better service than large ones

Truth: Exceptional service is more than just personalized attention; it requires the capacity to drive positive change. Resources are key. A successful property management firm blends local knowledge with national support. This combination delivers community insights, strategic contract negotiations, and comprehensive policy enforcement. While smaller companies may need to generalize services, larger firms can offer specialized divisions tailored to specific community needs, whether for master-planned areas, high-rises, or active adult communities.