Management fee proposals can look very similar. A $45/unit/month quote from one firm and a $52/unit/month quote from another seem easy to compare — until you look at what’s actually included in each.
The base management fee is rarely where the value difference lives. What matters is what the fee covers, what gets billed separately, and whether the firm’s model actually delivers what the proposal describes.
What’s typically in a management fee — and what isn’t
Usually included:
- Board meeting attendance and agenda preparation
- Monthly financial package preparation and delivery
- Owner communication management (calls, emails, portal)
- Routine property inspections
- Vendor coordination for routine work (not capital projects)
- Covenant monitoring and enforcement tracking
- Annual meeting coordination
Often billed as extras — watch for these:
- After-hours emergency calls (sometimes billed at hourly rates)
- Capital project management (common to see 5–15% of project cost)
- Resale/refinance processing (per-transaction fees)
- Archive and records requests
- Enforcement hearing attendance
- Insurance claim coordination
When comparing proposals, add up a realistic estimate of the à la carte charges alongside the base fee. That’s your true annual cost.
The staffing model behind the number
The management fee funds the staffing model. A firm charging $38/unit/month that assigns one manager to 20 communities delivers something fundamentally different from a firm charging $52/unit/month where every account has two dedicated people.
Questions to ask directly:
- How many communities does our assigned manager carry?
- Who covers when the manager is sick, on vacation, or leaves?
- Is there a dedicated assistant on our account?
- What’s the manager’s average tenure at your firm?
The answers tell you more about value than the fee line.
Why the cheapest option often costs more
Management firms generate revenue in a few ways: the base fee, à la carte billings, and — at some firms — arrangements with vendors and insurance brokers. A low base fee can be offset by high à la carte billings, or by a business model that benefits from recommending certain vendors regardless of quality.
Ask how the firm is compensated by vendors, insurers, and lenders. Any honest firm will answer directly.
Evaluating a proposal properly
- Normalize to a total annual cost. Add base fee × 12 + realistic à la carte estimates.
- Ask about staffing ratios. The number that matters is communities per manager.
- Check references. Ask specifically about financial package quality and response time.
- Evaluate governance support. Is the manager a strategic partner or an order-taker?
- Look at the contract term. Longer terms with weak termination rights benefit the firm, not the board.
We don’t have vendor arrangements that create conflicts. The fee is the fee. Boards that need the cheapest number usually need a different firm.
— Doug Newman, CPE
Frequently asked
What's a typical HOA management fee in Connecticut?
Per-unit-per-month fees for full-service management in Connecticut typically range from $35 to $75, depending on community size, complexity, and what's included. Larger communities usually pay less per unit; smaller communities pay more. Flat monthly fees are common too, typically in the $800–$3,500/month range depending on size.
Should we always take the lowest bid?
Almost never. The management fee is 5–15% of your total operating budget. If a lower fee leads to slower responses, weaker financial packages, or higher vendor costs from unmanaged bidding, the savings evaporate quickly. Evaluate total cost of management, not just the base fee.
What should always be included in a management fee?
Board meeting attendance, financial package preparation and delivery, owner communication management, routine property inspections, and vendor coordination for routine work should all be included in a comprehensive management fee — not billed as extras.
