Hi Phil -
I think your point might be more about Homeowners having control of the development - a point with which I agree 100%.
On the point of Homeowners owning the mgmt company - that is not so easy and not so one-size-fits-all. You are a successful rental-manger of property so for you it may come naturally to do a good job --- but not everybody is able to do this business well. Certainly buying a condo does not make you an expert at bookings and management.
In fact sometimes having the homeowners themselves own a management company can lead to conflicts of interest and maybe more conflicts in general than hiring an outside service provider. It's also a lot more work for your Association and sometimes people own condos to have less work, not more. Liability issues are to be considered as well.
I think the essential elements to avoid Management problems are:
1. Homeowners Association owns the common areas, including lobby and office.
2. Homeowners Association can fire the management company.
Then make a contract that is win-win and see that everybody understands it.
The places with histories of problems are/were where the points above were not part of the landscape.
Last edited by Diane Campbell; 04/07/10 02:01 PM. Reason: spelling and clarity