An Existential Moment for HOA / Condo Property Management

February 22, 2024
February 22, 2024 Sasha Cancél

As we look towards the future of property management in 2024 and beyond, the industry is pivoting towards a strategy that prioritizes experience over mere service delivery. This shift entails providing a holistic experience that seamlessly integrates people, processes, and technology, redefining the essence of community management. 

In the evolving landscape of Homeowner and Condo Community Associations, the journey has been challenging but it’s also ripe with opportunities for innovation and growth. Here’s a dynamic breakdown of the current scenario, highlighting key issues and transformative strategies:


Challenges Facing Community Associations

– Skyrocketing Dues: A staggering 73% of communities witnessed a doubling in Association dues, primarily driven by soaring insurance premiums.

Rising Insurance Costs: The cost of maintaining and managing communities has been inflating historically.

– Legislative Changes: In the wake of tragedies like the Champlain Towers North collapse in Surfside, FL, new laws have intensified financial pressures.

– Impact on Homeowners: Many homeowners now face HOA fees that eclipse their monthly mortgage payments, a scenario affecting 35% of homeowners according to a DoorLoop study.

– Management Company Strain: These companies are seeing an 8-10% yearly increase in operational costs.


Opportunities for Innovation

  1. Portfolio Scale Economics:

    – Problem: Reliance on manual labor has become costly due to high wages and turnover.

    – Solution: Consolidation of management companies and technology-driven service models.

    – Pros: Shared services, technology standardization, and volume-based expense reductions.

    – Cons: Challenges in integrating acquisitions and maintaining service quality.


  1. Building Trust and Transparency:

    – Problem: Management switches and a public reputation tarnished by a few fraudulent cases.

    – Solution: Enhanced owner communication and engagement through digital tools.

    – Pros: Secure online voting, service provider ratings, and resident surveys build trust.

    – Cons: Requires consistent effort and adaptation to new technologies.


  1. Monetizing Community Interactions:

    – Opportunity: Everyday community transactions offer revenue-generation potential.

    – Approach: Creating a unified, consumer-like mobile and web experience for all interactions.

    – Pros: Increased margins on daily transactions and enhanced community experience.

    – Cons: Balancing monetization with community values.


 The Future of Property Management

The landscape of Homeowner and Condo Community Associations is transforming. By embracing technology and innovative strategies, management companies can navigate these challenges and emerge more robust and valuable. We predict more companies will be moving beyond mere service delivery to providing a comprehensive experience encompassing people, processes, and technology.

Central to this transformative wave is ONR, a pioneering technology platform that stands at the forefront of this change. It’s not just about managing properties anymore; it’s about creating a dynamic and engaging community environment. ONR embodies this philosophy, offering a unique blend of operational efficiency and enhanced community engagement, setting a new standard in how property management companies interact with and serve their communities.