One Simple Choice That Can Increase Your Community Management Company’s Profit Margins
How management companies can increase profit margins by introducing efficiency via automation
There is no question that Community Association Management has a significantly tighter profit margin potential than other forms of real estate management. In 2009, former CAI National President Michael E Packard outlined these differences in the Journal of Property Management. To paraphrase, he explained that the issue lies in the way fees are structured:
With commercial and real estate property management, fees are based on a percentage of the rent; while community association management bases fees on a flat amount per door.
