CCAM is a small HOA firm with years of experience managing thousands of doors and dozens of HOAs. We know that the job is to support HOAs, and that includes not just responding to calls and emails, but helping you manage your budget. No one likes paying more.
But if your HOA uses a BIG management firm, then the odds are that your HOA is paying tens of thousands in extra expenses and that means your dues are higher and possibly your reserves are not being funded as well as they should be.
Here's some ways that BIG management firms are costing you too much.
- Paying for overhead bloat - Big firms have multiple layers of management, regional VPs, and corporate offices — all funded by HOA fees baked into your contract.
They may have buildings with their name on it, company cars, lots of desks and furniture and computers and software licenses and phone systems, oh my.
They have to charge more to pay for all of that. But it doesn't mean they do the job better.
CCAM is smaller and local. We don't have big buildings, company cars or all that other overhead. So our costs are much more reasonable, usually thousands less. And that's just the start.
- Vendor kickbacks & markups - Your BIG management firm often gets kickbacks from their vendors. Is that ethical? It's legal. They get kickbacks from insurance providers, banks, and more. That kickback is added on top of what you pay so that your BIG management firm can get extra money.
That could mean you're paying too much for insurance which is already one of the top reasons most HOAs are currently busting their budgets. Instead of kickbacks that cost you more, CCAM asks vendors to apply any credits or extra profits back to you, so you SAVE money, instead of paying more.
Did you know that some BIG management firms have their own insurance team and your HOA is required to use them and their preferred company due to revenue sharing? That means they may be motivated to shop your insurance where they get more money, and you could be paying higher premiums than you need to.
CCAM believes that you should pay less where you can. We're here to help you negotiate the best rates for your HOA, not find ways to get more money out of you.
- In-house service upsells: That BIG management firm may have their own in house providers. That isn't necessarily a bad thing. But it could mean you're paying more than you need to.
Some BIG firms have their own maintenance teams. And while that sounds like a great deal, they often bill you at significantly higher rates than a local non-affiliated maintenance team. They may even charge you to do estimates, or to compile specs. Most service providers give free quotes and estimates, but you may be paying a fee for each time the BIG firm's team comes out for any reason.
Some BIG management firms also have their own 'Reserve Study' teams. Again, not necessarily a bad thing, but you could be paying too much again. Did you know the State of California requires you to have a Reserve Study every 3 years. But some of these BIG management firms require you to have a 'Reserve Study Update' the other 2 years. That means more unneeded expenses for your HOA.
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Extra Charges & non inclusive pricing - Some of these BIG Management firms don't just charge you just for their services. They then charge you another 'package' of services that may includes many things you thought were part of the daily job - things like cutting checks, fees to review or prepare forms or requests, or bids, or other accounting tasks. So what does their standard bill pay for?!
At CCAM, almost everything is included in our lower price point. We don't 'nickel and dime' you. The only other expenses are generally the costs for full community mail outs, like budget meeting mailers and election mailers, since every community is different and these large mailings are more difficult to price in. -
Making your vendors pay-to-play - Some of the BIG management companies make vendors pay a fee to be validated. This causes many of the smaller vendors to balk at working with your association, so your management firm may only work with bigger, more expensive vendors. While it is extremely important to vet your vendors to make sure they are licensed and insured, requiring them to pay a fee just to bid on your jobs can alienate many good, local vendors who may be more affordable.
Here, at CCAM, we don't require your vendors pay a fee to be vetted. We believe in helping your HOA find appropriate vendors and vetting them for the right licenses and insurance.
Are you being overcharged?
While not all BIG HOA management firms are the same, it's important and helpful to know what your HOA is paying for and if there are ways to save money.
CCAM costs less than most BIG management firms, and doesn't participate in kickbacks or profit sharing, and asks vendors to credit your bill with any incentives they offer.
Our job at CCAM is to help you get the most bang for your dues, not to try to get more out of you.
Why not request a proposal and see how CCAM can save your HOA $1000s and give you better response and service!