Case Study
United Properties of West Michigan welcomed aboard an 86 Unit Condominium Home Owners Association - Kentwood, MI
Problems:
When United Properties of West Michigan (UPWM) took over management of the property, it was in serious financial condition with over $40,000 of unpaid bills and less than $18,000 only available in their bank accounts.
Numerous issues from the roofs of the buildings existed due to their exceeded life expectancy, issues with adhering to the policy governance model of the Association and a large number of collection issues had depleted the Association’s operating and reserve accounts.
Solutions:
Upon taking over management, UPWM immediately began collections efforts to improve the Association’s financial condition.
UPWM communicated the importance in raising Association dues to allow working capital so that it could immediately address deferred maintenance and repairs. This was accomplished by implementing a budget based on historical performance of the Association.
Expenses were evaluated, coordinated and negotiated. UPWM was able to renegotiate many expenses including reducing their annual insurance premium by 24%. A complete review of expenses and collection procedures provided significant monthly contributions to the operating and reserve accounts. Additionally, within 1 year all were paid and the bank balance was over $65,000.
Vast improvement in customer service improved the image of both the Community and Management Company in the eyes of the residents. Valued communication between both UPWM and the Board of Directors, helped adherence to polices which created a community that both management and residents can both be proud to represent.
