If I decide to start an HOA management company and partner with you, would it be possible for me to retain my current job until some income is generated?

Yes, however, it would be necessary to avoid any conflict of interest with your current employer. Call me to discuss because avoiding a conflict is critically important.

 

Is a $4,000 investment realistic to start an HOA management company in California?

An investment of $4,000 is realistic, if I become your partner and also invest $4,000. A total budget of $8,000 should be sufficient. The funds will be needed over a 12-15 month period of time.

 

If we partner with you in starting a new HOA management company, do you provide a website?

Absolutely. The website we will provide will be customized but will be similar in quality to the website for CoastManagementofCalifornia.com.

 

Are there enough homeowner associations in California to provide a new HOA management company with a steady stream of prospective clients?

Absolutely. See: Homeowner Association Statistics for details.

 

I am 54 years old and have extensive experience in managing all types of properties including condominium associations in California. I continue to find it difficult to find a position as a portfolio manager. Does age seem to be a factor in the HOA management industry. Will my age be a factor if I partner with you in establishing a new condominium management company?

Age seems to be a significant factor with many companies in many industries when it comes to both hiring and retention. In terms of starting an HOA management company, your age will be a positive factor. Maturity and wisdom are both needed to make good decisions. See: Reasons Older Workers Can't or Don't Get Hired.

 

Does the potential exist for making a substantial income in the HOA management business?

Yes. However, it will not happen overnight. HOA management companies start to generate significant earnings when they reach about 30 HOA accounts which requires two or three managers depending on the size of the properties. See: Becoming Wealthy Managing Homeowner Associations.

 

If I partner with you in starting an HOA management company in California but want to retire in ten years, what are my exit alternatives?

You have several alternatives including: (1) You can sell your share of the company to anyone wanting to acquire a management company. The demand is very high for management companies in California. (2) You can retire and retain your share of the company and collect your share of the profits generated forever. If you decide that you don't want to continue managing associations, they can easily be transferred to another manager. For information on selling an HOA management company, see: PacificBusinessAdvisors.net.

 

Are HOA management companies fairly resistant to recessions?

Absolutely. HOA management companies are one of the most recession resistant types of businesses a person can own. During economic recessions, the demand for HOA management services does not decline. In addition, owning an HOA management company allows the owner to develop multiple streams of reliable income.

 

Is a California real estate brokers license required to operate an HOA management company?

No. A real estate brokers license is required to manage rental properties, not homeowner associations.

 

What are the best areas in California in which to start an HOA management company in your opinion?

Any area will work, but the best areas are San Diego County, Orange County, Riverside County, Bakersfield, the Coachella Valley, and the Santa Clarita Valley. There are condominiums and planned developments everywhere and the percentage of homes having a homeowner association is constantly increasing. Today, it is almost impossible for a home builder to obtain building permits unless he or she includes an HOA. Cities and counties are forcing home builders to include greenbelts, parks, and other amenities in nearly all planned developments, and every condominium development requires an HOA.

 

Will I need an office?

No. Until you are very large, you can easily operate your HOA management business from your home. An office will never be required if you partner with us.

 

If I start an HOA management company in California, will I also be able to offer rental home management and leasing services to clients?

Managing and leasing rental properties requires that you have a California real estate license. If you are not currently licensed, we can assist you in obtaining a license.

 

I have a construction background. It is feasible to offer construction and maintenance services to homeowner association clients?

Absolutely. Offering these services can be very profitable and is definitely a positive factor.

 

Are you willing to partner with someone anywhere in California?

Yes, provided we do not already have a partnership arrangement in the immediate area.

 

I have property management experience, but no accounting experience. If I partner with you, will you handle all accounting responsibilities and escrows?

Absolutely. We own a small accounting firm that can handle all accounting and escrow functions.

 

I have no experience in how to collect delinquent homeowner association assessments. If I partner with you, will you be able to handle any assessment collection requirements?

Absolutely. We own Pacific Association Collections which has specialized in collecting delinquent HOA assessments since 1987. The company services the entire state.

 

Can you assist me in creating a local directory of qualified contractors and vendors?

Absolutely. We already have a list to help you get started and we have reliable sources for additions. Given that I started my HOA management business in 1987 and I am well known in the industry, we regularly receive unsolicited applications from vendors and contractors seeking work. Vendors and contractor also like the fact that unlike some management companies, we do not ask them for money in order to approve them. See: Certified Vendor Program-Caution.

 

How many years of HOA management experience do you have?

I have more than 34 years of homeowner association management experience and more than two decades of experience owning and operating my own law firm that focused on HOA and real estate law.

 

Are there many barriers to entry into the HOA management business?

The barriers to entry are relatively low. With me as a co-owner or consultant, I can make the barriers even lower.

 

Can you assist me in starting an HOA property management company in a state other than California?

No. The laws that apply to homeowner associations are different in every state. I know the California laws that apply to HOAs very well, including the Davis-Stirling Act, but I do not know the laws of the other states.

 

Can you assist me in buying an existing HOA management company in California if I don't want to start one?

Absolutely. Call Michael Chulak for additional details.