Our building is over 400 units and we have been "self-managed" since inception. However we are self-managed in the sense that we hire our own professional staff rather than using a property management firm. To do so we have a dedicated office staffed with two full time employees and a part time bookkeeper.

Our reasons for doing so are several but primarily this type of self-management gives us close control and high quality on-site customer service. We also save some money; however the savings are not significant enough to be the primary reason for our ongoing decision. Our employees are highly experienced in the management and real estate field so we are not sacrificing any quality.

I don't know how large your building is; however if you contemplating self-management by your board of directors rather than directly hiring your own employees I cannot recommend it. For any of you who have read my posts before, you know that I am a strong advocate of using professionals to do a professional's job. I believe that relying on a volunteer board that may change from year to year is a mistake. Successful management of a building requires attention to a myriad of details and no matter how well-intentioned, a volunteer board is more likely to make mistakes and may make decisions for political, rather than logical reasons.

So far our story has been a success but I am open minded. As president for a number of years, I am deeply involved on a daily basis - our manager and I work closely together as a team with me providing the direction and our manager providing the execution and valued advice. Both roles are key and they have to fit together well. Of course I am not irreplaceable, but my successor will need a similar commitment to be successful. If our manager were to leave, I would seriously consider all options, including a professional management firm.

Self-direction provides a level of service and control that you might not otherwise achieve, but it's not for everyone.