Guide

Management company or self-managed committee? It depends on the building. Here is the math

Not every building needs a management company, and sometimes the right answer is not to pay us. That is the truth, even when it does not work in our favor. In a small building with no elevator, a functioning volunteer committee is usually the right solution. The math changes once there are systems, floors and residents who have to be chased for payment, and here is exactly where the line falls.

When a self-managed committee works well

In a small building with no elevator, no pumps and no underground parking, maintenance is simple: cleaning, electricity for the stairwell, a small garden. If one organized resident is willing to manage the funds, there is no reason to pay a management fee. We manage properties of 60 residential units and up.

Where the math flips

Three things change the equation: systems (an elevator, pumps, a generator, each with mandatory maintenance and standards), collections (in a large building there is almost always someone who does not pay, and chasing them falls on the volunteer), and legal liability. An untreated leak or a faulty elevator is personal exposure for the committee members.

Self-managed committeeManagement company
Monthly cost per apartmentActual costs onlyPlus a management fee (in a typical building: hundreds of shekels per apartment)
Collecting from debtorsNeighbor chasing neighborA graduated process up to legal action, not personal
A fault on Saturday nightWhoever picks up the phoneA 24/7 service center with a human answer, and every call is logged
Preventive maintenanceUsually none; things get fixed when they breakAn annual plan for every system
Financial transparencyDepends on the volunteerA binding monthly report; with us, by the 10th of the month
ContinuityEnds when the volunteer gets tiredDoes not depend on one person

The middle path most people do not know about

You can buy only part of it: a company that handles only collections and finances while the committee keeps managing the suppliers. Or the other way around: maintenance only. It costs less, and it suits mid-sized buildings. Just make sure it is clear in writing who is responsible for what, or every fault will land exactly on the seam.

What people ask us

Frequently asked questions

How much does a management company cost compared with a self-managed committee?

The difference is the management fee: in a typical residential building, on the order of hundreds of shekels per apartment per month on top of the actual costs. On the other hand, a well-run company saves money through preventive maintenance (fewer expensive emergency repairs) and full collections (fewer "holes" that the paying residents end up covering). In a building with systems, the savings usually exceed the management fee. In a small, simple building, they do not.

Is a residents' committee required to hand management over to a company?

No. There is no legal obligation. The decision belongs to the residents' general meeting alone, and it can be reversed. That is why it is important to make sure the exit terms are written explicitly into the contract: the term of the engagement, the notice period and any related cost.

What happens to the committee when a management company comes in?

The committee keeps working, in a different role: it remains the decision-making body and the company carries out the work. How authority over the bank account is divided is set in the engagement and varies from building to building. A good committee alongside a good company is a strong combination: the committee knows the building, and the company brings the tools.

Talk to us

Want us to go over your situation with you?

A short call to understand what you need, a site visit, and a detailed itemized proposal. No sales pressure and no commitment.

  • An itemized proposalCleaning, maintenance, security and management, each priced separately, so you can really compare.
  • A free site visitThe survey we make during the visit is yours to keep, even if you choose another company.
  • An answer within two business daysUrgent fault? Our service center is open 24/7 at +972-3-7736777.
Phone+972-3-7736777Emailoffice@achlagroup.com
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