In the first few years of this new century, the view was pretty rosy; it seemed like property values would do nothing but rise forever. Monthly HOA meetings actually attracted crowds. HOA boards even had extra money in their budgets.
Thanks to the recession’s continuing reverberations however, things are different nowadays. In most South Florida associations, you can consider yourself lucky if the whole board—much less the residents—shows up for the monthly meeting. You are luckier still if you can actually hold an annual meeting, or have enough residents who care enough to show up and make a quorum. Arrears and foreclosures continue to menace the bottom lines of many associations, while maintenance costs rise irrespective of residents' and boards' ability to pay.
Given all that, it's a big job for volunteer board members to deal with the day-to-day maintenance of a condo or homeowners association, let alone handle complaints from disgruntled residents.
That's where the property manager comes in. It is for the above-mentioned reasons—and many more, of course—that a competent, experienced property manager is an essential part of every HOA's administrative team.
Explainer & Enforcer
According to Joseph West, president of the Community Associations Network LLC, a nationwide online resource for community associations and those who work with them, “The role of the manager is to carry out the policies and directives of the board, and to serve as an effective conduit between owners and the board and vendors. Managers provide advice and counsel regarding the maintenance and upkeep of the common areas, and provide accurate information for the board to use in making decisions. They also handle the administration of association matters and oversee the actual maintenance and repair to the common areas.”
New HOA residents frequently don't bother to read the rules and regulations of their association, let alone take the time to really delve in and understand them. Many unit owners only acknowledge the larger association when there is a problem, and then only grudgingly. It is the responsibility of a good property manager, in cooperation with a competent board, to clearly and effectively communicate the association's rules, and enforce them fairly and consistently.
“When I used to teach managers,” says West, “one of the messages I tried to impart was that 'friends come and go, but enemies accumulate.' Residents who like you may not run for the board, but the person you’ve sent violation letters to, or said no to, or ignored when they made a request—those people all have long memories, and they may decide to run for a spot on the board. Do a good job on the negative aspects of management and you’ll be around a lot longer.”
According to William Douglas of William Douglas Property Management based in Charlotte, North Carolina, "Understanding today's hiring and renting trends means understanding that at times properties remain vacant, have new owners, or are simply in need of management in a different way than they were in the past. Therefore, companies like ours do our best to provide these management services to property owners. We are flexible with our management style and with years of experience, we can be relied on to provide what it takes —whether it's finding new tenants, renovation, financial management or providing temporary financing."
A Changing Landscape
With foreclosures at a 25-year high, and tenants/owners being evicted at an alarming rate, homes change hands rapidly due to fast sales and bank-takeovers. Millions of homes are sitting vacant, and are still in need of management. Whether a property is owned by a new owner who can't do the upkeep himself, or by the bank that doesn't have the time to take care of the property, there are lots of different properties that are desperately in need of management. During such fluctuating realty markets, the demand for property managers often peaks. These managers must possess an impressive array of communications skills, as well as patience to deal with the problems of everyday living.
What does a manager need? “Communication, organization, general knowledge of just about everything and a thick skin,” quipped West. ”Communication skills, both verbal and written are critical in the information age. A manager attending a board or general meeting today, has just about every bit of information about that association available at his or her fingertips, but the ability to sort through the information overload and communicate the needed parts in a manner that is effective, can help a board make good decisions,” he added.
In today's economy, there are tons of property management companies willing to work with your community. It all boils down to finding the one that best meets the needs of your particular association. To some people’s surprise, however, property managers are people, too.
To do a thorough background check, look at the operations and support systems of your management company. Do they provide you with timely and accurate information? Is their support staff organized, professional and happy to work there? Is there a high rate of turnover? Do they have a good response time? How long does it take to respond to phone calls, emails, letters? Are they ahead of the curve? Do they support continuing education? Do they have a set of internal checks and balances? What protections are in place to prevent fraudulent activity? If your answer to these questions is yes, then your management company is likely a professional and reputable organization.
In the end, all that really matters is that you live in a happy, prosperous community where the needs of all of the residents are met, and the daily maintenance of the facility is kept up. If these basic needs are not taken care of, then it is time to look for another manager.
Adam J. Sinclair is a Florida-based freelance writer and a frequent contributor to The South Florida Cooperator.
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