A management company is contracted by the Board of Directors to provide such services as collection of assessments, supervision of subcontractors, obtaining bids for subcontracted services, providing financial statements and collection reports, as well as a general clearing house for problem solving, communications with homeowners and the Board of Directors and to serve in an advisor capacity. The management company reports directly to the Board and all decisions are made by a majority vote of the Board of Directors.
The only extra charges that the association will incur would be any out of pocket expenses that the management company has that directly involve the association. Examples of extra charges would be postage and photocopies. There are very few additional charges over and above the management fee and all are set forth in the management agreement.