Have HOA Management questions?
We are interviewed by perhaps 75 boards a year who are interested in our services. Not surprisingly, they share similar concerns and ask similar questions. We are providing these “FAQs” to you so that you may have better clarity of our company. This list is not comprehensive, but here are the questions we respond to at many interviews:
What is your "story"?
Progressive Property Management, Inc. (residential property management), dba Partners Real Estate Group (real estate sales), dba Progressive Association Management (association management) is 100% owned by Scott P. Brady. He graduated from UC Berkeley with a BA in Comparative Literature (German, Latin & English), earned his MBA from Call State Fullerton and obtained his broker’s license in 1997. He became a top producing real estate agent, joined the Coldwell Banker franchise in 2003, and experienced first-hand, the Great Recession. After crawling through that financial wreckage, he started Progressive Property Management in 2012 to not only survive any recession, but to thrive in any residential market.
From 0 doors under management in 2012, Progressive now manages over 1,000 residential properties (doors). In 2014, Progressive started allowing agents working for their sister company, Partners Real Estate Group, to manage properties. The goal is to add a minimum of 50 residential properties a year. In 2020, when the Covid lockdown occurred and there was the potential for a statewide “rent holiday” and a threat to residential management income, he started Progressive Association Management and now expects to add 50 to 60 associations a year or 3,500 to 5,000 owners. We currently manage about 195 associations and 12,500 owners.
How long has Progressive been in business?
Where are your branches located?
What makes your business different?
There are many association management companies and most share the same business model: they have a salaried Community Manager, who makes $70,000 to $90,000 a year, and they require them to manage a minimum of two to three times that salary in base management fees. So, for a community of 100 paying $1,850 a month in the base management fee (using our pricing), with a Community Manager making $7,000 month, they would be required to manage 11 to 15 communities, perform 20 to 30 on-site walks and meetings, answer to 40 to 50 board members and another 1,300 to 1,500 owners. They are assigned an almost impossible task.
At Progressive, we pay our managers 50% of the base management fee and limit them to 10 communities or 1,000 owners, whichever comes first. Most work remotely from their home a majority of the week and are your local “boots on the ground”. The job of a Community Manager can be trying, so they enjoy a better lifestyle working remotely. By limiting the number of communities and owners they manage and paying them more, we expect them to provide a higher level of customer service. Also, if it is a fit, and you are satisfied with their service and they enjoy managing your community, they may be your manager for years.
Why do you limit your community to 10 associations or 1,000 owners?
Too many companies require their community managers to manage far too communities and owners to cover the overhead of these large companies. We have heard of managers managing 15 to 20 communities and 1,500 to 2,000 owners. They may have some assistance, but there are just not enough hours in the month to interact effectively with that many board members and owners. We feel a good Community Manager can effectively manage 10 communities or 1,000 owners, whichever occurs first. We want our managers to be Board Consultants and Community Experts and not exhausted, overworked and reactive to the needs of their communities.
What are all your fees?
In addition to your base management fee, we charge three recurring fees and a one-time fee: a management software access fee ($1.15/per owner per month); an annual budget assistance fee ($5 per owner per year); recording meeting minutes ($75 per meeting); and a one-time set up fee of $10 per owner. We are also entitled to be reimbursed for hard costs incurred for your community (paper, printing, postage, etc.). We do not charge to coordinate vendors, communicate with your attorney or interact with your vendors as many other companies do. If an owner pays late, we do retain 50% of the late charge. In addition, if the board requests for us to mail out documents to the community, or if there are boxes requiring storage, we are reimbursed for our costs as follows:
| Office Expense | Reimbursement |
|---|---|
| Paper | $.10 |
| Printing | $.10 |
| Envelope (small) | $.25 |
| Copies (black & white) | $.25 |
| Copies (color) | $.40 |
| Envelope (large) | $.50 |
| Postage | $.63 (or cost) |
| Per Box Storage | $3.00 |
How do you calculate your base monthly management fee?
Our pricing is completely transparent and not pulled out of thin air. You can visit our website and go to our pricing page (www.Progressive-Am.com) but it is based on two factors: how many owners are in your community and the total amount of your monthly dues. We charge a flat fee per owner which decreases as the number of owners increases due to economies of scale, and 3% of your total monthly dues higher dues means more common area covered by the association and more complex finances. Here is a table of those fees so you can calculate your base monthly fee yourself:
Should we choose “all-included” pricing or “a la carte”?
We offer two payment options. For “a la carte” our associations pay a lower monthly fee, but reimburse us for expenses associated with the management of their community (paper, printing, postage, envelopes, etc.), a monthly software access fee for each owner (currently $1.50 per month), the cost to record the meeting minutes ($75), an annual budget assistance fee ($5 per owner per year) and any other costs we incur. With “all-included”, for an additional $4 per owner per month, we absorb those costs. There are limitations and restrictions, and we only offer this plan for communities with a minimum of 20 owners, but many communities prefer fewer line items on their monthly statements and the simplicity of the “all-included” plan. You decide which plan you prefer.
Why do you charge a software access fee of $1.15 per owner per month?
The fee our management software company (Cinc) charges us. Unlike other software providers, who charge an additional fee for owners to pay online, there is no additional fee with Cinc. We chose this software because of how robust it is. Owners have their own portal where they can pay online, make maintenance requests and communicate with our company. The board may also allow free access to community documents in this portal. The board has a higher level of access and can review the monthly financials and bank statements and approve invoices.
What if we don't like our Community Manager?
Sometimes it is not a fit between the manager and the board. If that occurs, we expect you to reach out to our management team and we can find another manager to assume your account. We ask that you give your manager a few months to get acclimated to the board and community before making that request.
How can your Community Managers provide better service than other management companies?
Do you have proper insurance?
Since we manage almost 1,000 properties and over 200 associations, we understand the importance of comprehensive and effective insurance. We carry the following policies:
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- General Liability – This covers any damage to person or property at a community, rental property or during the course of work.
- Errors and Omissions – This covers an agent for real estate related activities includes residential property management, association management and real estate sales.
- Cybertheft – Anyone who handles money is a target of unscrupulous criminals looking to steal funds. This can be business operating, trust or even reserve funds.
- Workers Compensation – If an employee, manager or agent is injured on the job, their injury is covered by this state fund.
- Fidelity Bond – We have a $1,000,000 Fidelity Bond to protect the funds we have on hand.
How do we start using your company?
First you must terminate the agreement with your current company. Review that contract carefully, some contracts allow termination with 30-day notice, others 60-day, but a few only allow you to cancel the contract during a specific 30-day window or the contract automatically renews for another year. Once that agreement is terminated, which can be done via email or written notice, you will execute our contract. Once that is complete, we will start the transition process. This includes reaching out to your current company, obtaining the “owner role”, picking up governing documents, changing banks and on boarding your owners. We can transition a community in 30 days, but 45 days is preferable.
What does your management fee cover?
How do you help us with delinquent owners?
How quickly will a Community Manager respond to board calls or emails?
The board will have the cell phone number of their Community Manager, so we expect the manager to respond almost immediately to any inquiry, but certainly within 24 hours. We ask the board to use this number judiciously and try to have one point of contact (it is not necessary to have three board members call the manager with the same issue), but we ask you to avail yourself to it.
What management software do you use?
What is your protocol for emergencies?
How do you enforce the rules and regulations?
We want our boards to lead their communities and not be the “bad cop” of the community. Although fines were recently capped at $100 by the state, and the process to levy that fine is more arduous now, it is our job to enforce the rules and regulations of that community.
What is the ownership structure of your company?
The company is family owned and operated. Scott P. Brady owns 85% and his son Garrett owns 15%. The long-term goal is for Garrett to take over the operations of the company in 10 years.
What is your Vision, Mission, Purpose & Principles?
We are happy to share our Vision, Mission, Purpose and Principles. Every manager, team member and anyone else associated with our company is introduced to these concepts and held accountable to them.
Our Vision:
We set the standard of excellence in association and residential management services.
Our Mission:
We liberate real estate agents from income instability.
Our Purpose:
The more successful we are, the more good we can do.
Our Principles:
– We are in the business of constant change.
– If is too calm, we are not going fast enough.
– Results over process: don’t let perfect be the enemy of good.
– Taking market share is a hand to hand battle.
– The customer is not always right, just usually. Find out first.
– Do what you said you were going to, when you said you would do it.
– We make money doing the things few else want to do.
– If we do all the above, we can’t be stopped.
– The customer is not always right, just usually. Find out first.
Why do you charge a fee to take the meeting minutes?
Some of our communities task the Secretary of the board with the duty of recording the minutes and this frees us of this responsibility. Since the minutes are such an important document for the association, many communities prefer us to handle this job, and we charge $75 to record the minutes and have them approved by the board for each meeting. This fee is kept entirely by the Community Manager.
Why do you charge an annual fee of $5 per owner for budget assistance?
Some of our communities have a Financial Committee or a board member with the skill set to create a proposed budget for the association, and we would then not charge this fee. If a board prefers us to create an annual budget, we look at what the community planned to spend, what they actually spent, compare that to the Reserve Study which estimates what the community will spend in the future and create both a budget and recommended dues increase (if any). The board has the ultimate authority to decide on the amount of the monthly dues and this is just a recommendation.
What is included in the base management fee?
Our contract is 19 pages long and you can find a sample contract on our website (www.Progressive-AM.com). But here is an attachment in that contract that spells out our responsibilities:
- Owner online payment of monthly assessments
- Monthly billing and collection of dues
- Reminder statements to homeowners who do not pay on time
- Collection of late fees (split 50/50 with association)
- Monthly accounting services
- Balance Sheets
- Monthly Profit & Loss
- Year to Date Profit & Loss
- Collection Status
- Bank Reconciliation
- Bank Statements
- Register Report
- Attendance of a meeting with board monthly
- Attend one annual meeting with board
- Schedule, notice and coordinate Board and general membership meetings
- Monthly visitation and walk through of premises with designated board member
- Payment to all vendors with prior approval from board
- Due diligence of all vendors
- Review of all vendor work
- Communication with board on all matters
- Any payments to vendors, in any amount to be communicated to board members
- Provide escrow holders information and documents as requested in writing with fees charged to the escrow holder for services rendered
- Assist with securing other professionals as needed
- Reserve Study
- Income Taxes
- Legal Expertise
- Debt Collection
- Compliance with all local and state laws
- Report annual budget to association
- Conduct annual election for association
Will you increase our management fee in a year?
Not necessarily, but we do look at two factors in making that decision: the rate of the inflation and if the time spent by our Community Manager on your association was reasonable and within our expected KPI (key process indicator). If inflation is 3% or higher, and our costs are increasing, we must pass this cost on to our clients to remain profitable and in business. With regards to our KPI, we expect our communities to require a reasonable amount of time of their Community Manager and we have calculated that amount to be 13 minutes per owner per month. For a community with 70 owners, that equals approximately 15 hours (70 owner x 13 minutes per owner = 910 total minutes /60minutes = 15 hours). This is an estimate and not exact, but if that same community is consuming every month 20 hours of that manager’s time, we need to increase our fee to compensate that manager appropriately. We will communicate to the board clearly if this is the case prior to the renewal period.
How long is your contract? Can we cancel it?
Your initial contract is one year in length. We cannot change the monthly management fee during that period. We are so confident in our business model and the service we will provide to you, that you can cancel our contract at any time for any reason with a 30-day notice. We also have the right to cancel the contract, but we must provide 60-day notice to you.
Are your Community Manager trained and certified?
We require every manager to obtain their Certified Community Association Manager (CCAM) certification from the California Association of Community Managers (CACM). Our managers are also all licensed California real estate agents. In addition, we provide in-house training, ongoing education and mentor programs.
Do we get to choose our Community Manager?
No. Once you sign our agreement and we begin the transition process we will reach out to Community Managers who qualify to manage your association (they live within 30 minutes and manage no more than 10 communities or 1,000 owners) and provide information on your community and needs. After we have identified that person, we will set up a meeting for a walk through of your community so they can begin the process of understanding your community and getting familiar with your governing documents.
Can we still use our vendors?
We are not here to replace vendors with whom you are satisfied. We don’t own a maintenance company and have no financial interest in any vendor you choose. If you are not satisfied with a current vendor or have a job that requires a vendor you have never used before, we are happy to get 3 vendors bids for you. Since we manage so many properties and associations, vendors are eager to get our business and provide both a competitive quote while providing quality work.
Can we see a sample contract?
You may visit our website (www.Progressive-AM.com) and you will find a sample contract there. If you wish to move forward with us, we will customize a contract for you for your approval, and if they board decides to hire us, we can send that contract over for signature via Docusign.
Will you do “financials only”?
No. Some in the industry will charge less than their full-service management fee and provide “financials only”. This includes monthly financials, accounts payable, accounts receivable and collections: the board is responsible for everything else. Here is what we have found: we end up providing full service management at a “financials only” reduced fee. We feel we have a fiduciary and legal responsibility to keep our boards in compliance with all the Davis-Stirling statutes and provided limited services would not accomplish that.
Do you do on site walks of the community?
Yes. We do a minimum of an on-site inspection of our communities every other month. We are happy to do additional inspections for a small fee if requested by the board.
Do you assist with the annual budget?
Yes. We have a full financial department that will assist the board with the annual budget. This includes requesting proposals from all vendors to determine their pricing, incorporating inflation expectations, and consulting the reserve study report. Your Community Manager will provide board feedback and final adjustments to that final proposed budget.
What is the HOASnapshot report you provide?
The HOASnapshot is our proprietary association report. Like a “Carfax” for associations, it curates, distills and prioritizes the critical information of an association including the CC&Rs, budget, reserve study, litigation, delinquencies and other data to create this report. Our boards use this report as a benchmark and baseline for decision making.
Do you profit directly from the vendors we choose?
No, we do not. We do not have an ownership interest in any vendor. We help the board display best business practices by obtaining at least two bids for services. Because we manage over 1,000 properties in our residential division and over 200 associations, we have access to and experience with the best vendors in the areas we serve.
How quickly will someone respond to owner calls or emails?
Does the manager attend board meetings?
Yes. A Community Manager will attend all board meetings. With the input of the board, they create a board package, construct an agenda, and manage the meeting. During the meeting, they document the proceedings and draft the minutes for approval by the board. Often, the President will conduct the meeting, but other times, the board prefers the manager to lead the meeting.
How do you stay up to date on laws and regulations?
The California legislature is constantly changing, modifying or adding new statutes for common area interest developments (CIDs, aka, homeowner associations). The owner of Progressive is a Director at the California Association of Realtors, very involved with the California Association of Community Managers (CACM) and a member of a few industry organizations (ACAM, CAM Leadership).
How many associations do you manage?
Do you offer board training and education?
Yes. At a minimum of twice a year, we conduct a 3 hour “Board Director Success Seminar” at our Anaheim office on a Saturday. We invite industry experts including an attorney, a reserve study specialist and an insurance broker to discuss their specialties. This is a free seminar and lunch is included. We will also be offering on line board education for those who don’t have the time or desire to drive to our office.
Still have a question? Contact us at Progressive Association Management, and we’ll talk about anything on your mind.
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The manager for our property is Alyssa. She is very professional, always quick to return phone calls and emails, and is very proactive in getting needed quotes and repairs. She is a huge asset to Progressive.
Lisa Bruchet
I had the privilege of working with Alyssa Kraus. She is incredibly responsive, detailed oriented, and knowledgeable. So grateful for all her help!
Hannah Bruchet
Sam is by far the best i have worked with. She's always available and replies in a timely manner. Always a pleasure working with her. Thank you for all you do for us.
Karina Sanchez
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Sam is such a wonderful person. She helped me and she has great customer service!
Minerva Castro
LOVE SAM!! she knew exactly what i needed help with and she explained everything so my husband and I could understand it. HIGHLY recommended to anyone who is thinking of moving to Orange.
Lauren Ruiz
Highly recommend working with them. SAM is amazing and she helped me and my wife with everything we needed.
Marco Ruiz
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Sam helped me out last time and was very kind and patient with me. Extremely wonderful experience I definitely recommend asking for Sam!
Elena Gutierrez
Sam is the greatest, ask for her every time
Jose Hernandez
This is the best company very professional I’m xtremely satisfied whit the costumer service Sam provide…thank you .
ImAussie
We are the best Property Management Company in the Counties of Los Angeles, Orange, Riverside, San Bernardino and San Diego..
Progressive Property Management Inc. has been involved in the local real estate and rental market for years. We understand the price points, the tenant pool, and the local vendors and contractors.
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Progressive Property Management Inc.
1290 N Hancock St, Ste 202, Anaheim, CA, 92807
202 S. Lake, Pasadena, CA, 91101
1-800-665-2149 | (714) 528-5522
info@progressive-am.com
CA DRE #01958885
Progressive Property Management Inc.
San Diego Office
138 Civic Center Drive, #201
Vista, CA 92084
1-800-665-2149 | (714) 528-5522
info@progressive-am.com
CA DRE #01958885
