Most Florida homeowners and condominium associations hire a community association management firm to handle daily operations, finances, and owner communication. How those services are priced matters as much as what they include. One common approach is a pay-as-you-go model, in which a base fee covers routine services and additional services are billed only when the association uses them.
This article is general information and is not legal advice. The association's attorney should be consulted.
How the Model Works
Under a pay-as-you-go structure, the management agreement separates services into two groups:
- Core services covered by the regular monthly fee, such as routine financial reporting, vendor coordination, scheduled inspections, and attendance at regular meetings
- Additional services billed separately when they are requested, often at an hourly rate or a set price per item
Additional services might include extra meetings, special projects, document preparation for an amendment, large mailings, or work outside normal business hours. The details vary from contract to contract, which is why they should be spelled out in writing.
Why Associations Choose It
Services match the community's needs. A small community with few amenities does not need the same level of support as a large condominium with staff and equipment. Itemized pricing lets each association pay for what it actually uses.
Costs follow the workload. Activity rises and falls. A busy season, an insurance renewal, or a major project may call for extra support for a few months. Under this model, support can be added during those periods and scaled back afterward.
Charges are easier to see. When services are priced separately, the board can see exactly what is being paid for. That clarity helps the board explain the budget to owners and builds trust.
An Example: Major Projects
A large construction project, such as a roof replacement or concrete restoration, usually requires much more management time than routine operations. Meetings with engineers and contractors, owner notices, and payment tracking all add hours. Under a pay-as-you-go agreement, that extra work is billed as a project fee or at an agreed rate, while owners in communities without such projects are not paying for that capacity year-round. The tasks a manager typically handles are outlined in
what tasks community association management companies handle.
What the Contract Should Define
A pay-as-you-go model works only when the terms are clear. The board should make sure the agreement states:
- Which services are included in the base fee, in specific terms
- Which services are billed separately and at what rate
- How additional work is requested and approved, and by whom
- How charges are itemized on invoices
- How rates may change at renewal
- How the contract can be ended and what happens to records at termination
Florida law sets several baseline protections. Under section 468.4334, a community association manager or management firm must act loyally, honestly, and in good faith, account for all funds, and may not charge unreasonable or excessive fees. Management contracts must include a written statement that the manager will abide by the professional standards and record-keeping requirements of Florida law, and a copy of the contract must be provided to any member on request. Official records must be returned to the association within 20 business days after the contract ends or a written request is received, whichever comes first.
Protections Against Kickbacks
Itemized pricing also supports honest dealing with vendors. Florida law prohibits an officer, a director, or a manager of a homeowners association or a condominium association from soliciting, offering to accept, or accepting a kickback. Under sections 720.3033 and 718.111, knowingly doing so is a third-degree felony. Clear pricing, written contracts, and competitive bids where required make it easier for boards and owners to see where association money goes.
Choosing the Right Structure
A pay-as-you-go model is not the only option. Some associations prefer an all-inclusive fee that covers a broad set of services for a single price, which makes budgeting simpler. The right choice depends on the size of the community, its amenities, how active it is, and how much predictability the board wants. Proposals from management firms should be compared on the same list of services so that the totals can be fairly measured. More guidance is available in
setting expectations for your HOA management company.
Talk With Condominium Associates
Management agreements from Condominium Associates are built around the services each community actually needs. To discuss options for your association,
contact us or
request a proposal.
