IREM Certified Property Manager (CPM) Practice Test

Self management or financial-only management is often the most effective model for a small condominium community due to several reasons. In smaller settings, the community may have a limited budget and fewer complex issues to handle compared to larger properties. Self-management allows residents to take control of the operations, fostering a sense of ownership and community involvement.

This approach typically involves residents managing day-to-day operations, making decisions collectively, and potentially reducing costs associated with hiring a full-service management company. Additionally, self-management enables the community association to develop a more intimate understanding of their property and immediate concerns, allowing for tailored solutions that fit their specific needs.

In instances where the community may require additional expertise, financial-only management can provide critical financial oversight without the extensive operational costs that come with full-service management. This allows the board to focus on community needs while leaning on professionals for financial best practices, ensuring the property’s finances are managed effectively.

In contrast, while full-service management and professional management companies can be beneficial for larger or more complex properties, they may not be a cost-effective solution for a small condominium. Contracted management services from external vendors might offer some flexibility but could lack the engaged involvement of self-management, potentially leading to less satisfaction among community members.