Category: Important Posts

Sometimes surfing the net can be frustrating, even while looking for a simple general subject. Try a key word search for, “property management, Naples”.

Most likely you may find conflicting websites. The first #1 listing on the front page for example, “Compass Management Group- Coming Soon”.   

    

Currently the company’s website reads “coming soon” and is not functioning. Also on the front page we found a special PDF (Portable Document Format) site, which had nothing to do with property management. Other sites viewed on the front page using the same key word were; software management, tool rentals, real estate, boat care, landscape and a company from Bonita Springs. With complicated algorithm ranking systems, the accuracy of search engines is diminishing by the day.

State requirements

The State of Florida requires condominium and cooperatives with 100 units or more, must obtain competitive bids if the contract exceeds five (5) percent of the association’s total annual budget, including reserves.

Regardless of the total annual budget, there are no State requirements of obtaining competitive bids for Community Association Management. However, it would be a disservice to your community not to seek competitive bids.

Even quality Property Management Companies cannot compete against “Super Sites”

Since property management are generally local companies, it would be a great feat to rank as high as a nationwide website. Therefore, local websites would likely be placed nowhere near the front page, no matter what search word is entered. With popular key words, it takes a high ranking website to remain on the front page.

Big site rule, small site drool

With management companies competing for the same “key words”, there’s only one website that stands above the crowd, All Property Management.

With approximately twenty seven thousand (27,000) in-bound links, this nationwide (including Canada) mega-site is classified as a PR6 (page rank 6) site.

The website has a professional layout which make for easy access locating desirable property management companies. To quickly find companies of choice, simply highlight number of units and enter your zip code, located on the front page.

Each company has their own special page with nicely layered borders wrapped around select pictures. Also, by combining the energy of red and the happiness of yellow, the color of orange highlights important elements of the design.

It’s obvious to us the author is an experienced property manager who knows the business. Some favorite Q&A’s include:

What Do Property Managers, Or Real Estate Managers, Do?

Real Estate Property Managers 

Real Estate Asset Managers 

Property Management And The Law 

Hiring A Property Manager 

Best kept secret of the net:  
If you look at the sidebar, you’ll notice a lonely innocent four-letter word, “blog”.  This blog design is cleaner than a granite counter top. You won’t find any annoying flashy advertisements here, but you will find a lot of valuable information regarding every aspect of property management. Some of the posts we enjoyed were:

Seattle Property Management

Las Vegas Property Management

Los Angeles Property Management

Community Association Managers – How They Can Help Your Homeowners Association 

Forget about Featured Property Managers, see management Blog for useful information

Some changes we would make: eliminate, “Featured Property Managers” pages. Clients are interested in companies in their local area. Unless the Featured Property Managers are grouped together by geographic locations, we really can’t see any significance. Moreover, Featured Property Managers should really be called, “Featured Management Companies”. Also, it may be a professional touch displaying people conversing in the header, but if one person stands out above the rest,

and who is not a celebrity or a featured author, it just seems odd to look at.

All Property Management proves to be a valueable marketing tool 

In one mouth we received two (2) relevant leads from All Property Management and Zero (0) from Embarq yellow pages and Yahoo’s directory. If you have a management company, we highly recommend advertising with All Property Management. We give the company and website an “A”, for overall usefulness. For great customer service, ask for Windy.

For popular posts see:

The Florida Regulatory Council of Community Association Managers Changed the Florida Statutes

Developers are in Business too Make Money

Fining Procedures for Homeowners Associations

If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new posts. Please subscribe to our community or our complimentary email services.

Having your vehicle towed can be a traumatizing experience.

Most condominium and homeowner associations utilize minimum parking. There’s always a time when someone in the community abuses parking privileges by parking in a prohibited zone or abandoning a vehicle for long periods of time. If the governing documents do not provide for the right to tow vehicles for illegal parking, then the rules and regulations (r&r’s) should suffice.

Step by step method to ensure r&r’s are added correctly:

• Post an agenda with the date, time and place of a Board of Directors Meeting.
• Make sure the agenda item states, “Board reserves the right to tow.”
• Vote to approve or disapprove towing.
• If approved by the Board, add the language to the governing Rule & Regulations.
• Send all record owners a copy of the new Rules & Regulations.
• An Affidavit confirming mailing is recommended.

After the “right to tow” is added to the r&r’s, it’s time to find a good local tow company.  The tow company should be exclusive and made available twenty four (24) hours a day. Ask for a free tow sign. Tow companies make money from towing vehicles from your community. Most south west Florida tow companies charge $180.00 to $220.00 per vehicle, depending if they use a flat bed truck or not. The sign is to be place in all entrances of the community. Any other tow sign placements would be additional. Your tow sigh should read, “Unauthorized vehicle will be towed at vehicle owner’s expense”, the bottom part of the tow sign should state the company’s name, street address with a operational phone number. Also Florida Statute 715.07 should be located of the sign.

Having a vehicle towed is very devastating to the unit owner and careful consideration should be considered before having a vehicle towed. We recommend a manager’s business card lightly tapped on the vehicle’s window. The notice should simply ask for the removal of the vehicle. To avoid more trouble than it’s worth, do not put heavy stickers on vehicles, this aggravates the owner unnecessarily. If the time comes where the violating vehicle must be remove, make sure a picture is taken of the vehicle before being towed. By doing this will alleviate any denial from the disgruntled vehicle owner of where the vehicle was taken from. Most tow companies have a digital camera ready for use.

For related posts see, “Condominium & Homeowner Associations Restricting Renters Rights” and “Responsibilities of Association Directors & Officers” and lastly but not directly related “Annual Proposed Budgets Almost to a Close”. If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new posts. Please subscribe to our community or our complimentary email services. (more…)

Ten (10) Reasons that make Property Managers go Hymn:

10. After-hour complaints regarding smoke detector beeping without any smoke. Property manager asks, “When was the last time you changed the batteries?”

9. Owner complains of neighbor’s cat peeing on shrubs causing them to wilt.

8. Lawn maintenance mows over and snaps sprinkler head in half. Lawn maintenance replace sprinkler head and charges association for irrigation repair.

7. Reports of a dead possum in the street.

6. Pool maintenance man tops-off pool with a garden hose. Pool maintenance man finishes and leaves job while forgetting to turn off water.

5. Plumber breaks building shut off valve using wrong pipe wrench. Plumber fixes building shut off valve and charges association for valve repair.

4. Homeowner fills elevator well with cat-litter because it smelled.

3. Owner (Snowbird) flies home for the summer, leaving an unknown leaky pipe. Owner returns to a mildew moldy mess. Owner demands association to pay for damages.

2. A punctured hole in the wall cause by moving furniture.  Owner demands association to pay for damages. 

And the number one (1) reason Property Managers  go Hymn:

1. Directors make error on amounts and quantity of building insurance. Directors sue the association for gross negligent.

Hymn

For popular posts see, “Property Insurance at a All Time High” and “Why Florida Condominium & Homeowners Live with Mold” and lastly “Condominium & Homeowners Rules for Parliamentary Procedures”. If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new posts. Please subscribe to our community. Or our complimentary email services.

We want to foreclose now, how long does it take?

If the lien was filed in a timely manner and there are no defenses raised by the unit owner, a textbook foreclosure could take as little as seven (7) months. Because of recent changes in the Florida Statute, fifteen (15) days longer for homeowner associations, see “Changes for Homeowners Associations”.

Three (3) Likely scenarios in most foreclosures:

1. Assessments fees, Attorney fees, late fees and all other cost associated with foreclosure are paid to the Association.
2. The Association takes title of property at the public foreclosure sale.
3. The defaulting owner files for bankruptcy.

The Association is legally entitled to collect all costs associated with forced foreclosure due to “failure to pay” assessments. Here’s a list of some possible charges; Claim of lien charge, clerk of court charge, filing a lawsuit, defendant fees, title search on the unit, delivering the complaint to the defendants, notice of sale costs, notice in local newspaper and clerks fee for the sale and documentary stamps for title.

The unit owner can pay at any time during these proceedings. The result turns into a “wash,” the Association is paid back assessments with all associated costs which terminates of the lawsuit.

The Association may choose to take title of the foreclosure property as an investment. In some cases where the equity of the property is not worth selling, the Association applies rent money to pay for back assessments until the property value increases. Once the property has gained in value, the Association would be able to successfully sell, recapping all connected costs.

A bankruptcy puts an automatic stop on first mortgages and also interrupts or imposes a federal “stay,” on association’s foreclosures. If the defaulting unit owner were a primary resident, then the owner would mostly be able to stay. However, the Association can still lien the property.

For sequenced posts see, “Part I; Collection Procedures for Condominium & Homeowner Associations” and “Part II; Collection Procedures for Condominium & Homeowners Associations” and lastly but not directly related “Directors & Officers is a Thankless Job”. If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new important posts. Please subscribe to our community. Or our complimentary email services.

Occasionally were asked if a unit owner is delinquent on assessments and their property is in a lien process, if the Board can revoke their voting rights, take away clubhouse and pool privileges and/or evict their renters. 

Since the condominium common-area is owned by the membership (see Condominium & Homeowner Associations Restricting Renters Rights), as long as there no “dual usage”, the owner is liven in the same community and is the legal owner of title, then nothing would prevent undivided common-area-use. Also, there is nothing written in the Florida Statute 718.106 regarding suspension of use rights or suspension of voting.

Homeowner associations on the other hand, are handle differently. Since common property is actually owned by the Board of Directors (see Condominium Verses Homeowner Associations), the Board has a little more common-area-use control. If provided for in the governing documents, and if the unit owner is delinquent, the Board can rescind the rights of common use. However, voting rights can never be annulled.

Additionally, both condominium and homeowner, the association has no rights regarding eviction due to late or delinquent assessments.

For similar posts see, “Condominium has Regulations, Where Homeowner Associations do not” and “Gulfshore Property Mgmt. Condominium & Homeowner Association Management” and lastly “Can a Unit Owner Assign His or Her Voting Rights?”. If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new important posts. Please subscribe to our community. Or our complimentary email services.

For supporting information, see Florida Statute 720.305 and 718.106 on next page:  (more…)

A new trend is out mollifying the high cost of association insurance.

After Hurricane Wilma, insurance rates soar to an all time high for community associations. Most existing local insurance companies packed up their bags and left “Dodge City”. This only left one company to carry the burden of insuring Florida associations with only the bare minimum. Citizens Insurance Company, which is a State funded company. After 2004 Citizen insurance more than doubled their rates for most South West Florida’s associations. The High cost of insurance directly affects all Florida homeowners.

There been ruses played by the Florida legislation using political tactics of conversions trying to stray Floridians away from demanding Charlie Crist to keep his promise of lowering Citizens insurance rates. See, “Property Insurance at a All Time High“.

Another feeble attempt by the Florida legislation to lower the ridiculously high price of homeowners insurance. In most classification codes, State has approved a workers compensation rate decrease, which is averaging slightly above 18%. Your association’s insurance agent would have to apply for the new workers compensation policy. Although it has happen before, it’s rare for an insurance agent offer rate decreases. As long as the association maintains a drug free work place and premiums are paid on time, your association should qualify. Again, this saving is peanuts compared to what we pay Citizen’s for Windstorm insurance.

While you have your association’s insurance agent check to see if your community qualifies for Workers Compensation deductions, have them check the new liability rates. General liability supposedly declining approximately 5 – 15%. This would depend on loss history and liability exposures of buildings. Still, the savings are no where near the doubling of insurance rates after 2004.

If your associations roofs hadn’t been checked by a Florida Contractor, might as well do it now. This is the only way Citizen’s give any kind of insurance relief. Beware of roofing mitigation contractors charging 10% of insurance savings. Paid them a flat fee instead. This will save the association money. The average refunds we experienced were 12 to 18% of  windstorm insurance premiums after factoring mitigation costs. Most associations qualify for these deductions. It’s rare for a roof not having proper straps and ties secured in place.

While the State of California is going bankrupt, the State of Florida is banking billions through Citizens Insurance Company. For relative posts see, “Property Insurance at a All Time High” and “Condominium has Regulations, Where Homeowner Associations do not. Regarding Notice of Meeting to Consider Excessive Budget” and lastly “Condomium & Homeowner Association Insurance Updates”. If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new important posts. Please subscribe to our community. Or our complimentary email services.

Part II; Collection Procedures:

Once collection is being turned over to legal council (the association’s attorney), all inquires are made to legal council only. To avoid a conflict of interest, the association or the manager should never discuss the defaulting property owner issue with any members. After being advised that a particular unit owner is delinquent of assessments, from that day forward, all collections are handled through the association attorney’s office and not through the association or management.

After the initial “demand letter” was sent with no response, the next step is to file a “claim of lien”. Claim of lien does not mean a lawsuit has been filed against the property owner. However, community associations must file for the claim of lien in public records, in the same place and in the same manner as a deed or mortgage, before filing a foreclosure lawsuit.

At the same time the claim of lien is being filed, a certified letter is sent to the unit owner advising the claim of lien has been recorded.The certified letter is the second thirty (30) day notice. The second thirty (30) day notice informs the unit owners that a foreclosure is in process. Also included in the notice is the amount due, including interest, late charges, attorney fees and any other reasonable costs. Without sending this statutory thirty (30) day second notice, condominium and cooperatives would lose their ability to incur a judgment for collection costs and attorney fees. Second thirty (30) day notice does not apply for Homeowner Associations.

There are many steps taken before a judgment can order the clerk of courts, sell the unit at a public auction. After the claim of lien is enforced, the competing interests are considered. Only two superior liens take precedence,  real estate tax and first mortgage, if any. If the lien process was executed in a timely manner, the better chance their isn’t any second mortgages, federal tax liens, construction liens or judgment liens, which would take a superior position in line.

The fewer the encumbrances, the more the property is worth and easier to sell. By naming the holders of competing interests as defendants in a foreclosure lawsuit and by proving the association’s claim of lien will be superior to these subordinate (secondary) interests, the buyer at the foreclosure auction will take title subject to real estate tax, first mortgage and extinguishes down by superior to subordinate interests. 

Determination the order of superior to subordinate competing interests, the attorney will file a foreclosure complaint. After the unit owner is property served and any other defendants, the case can move forward. Delivery of the foreclosure complaint is called, “Service of Process”. The service of process is executed in a formal manner and has many restrictions.

If no technicalities arise and after the judge enters the judgment, a foreclosure sale is set. Twenty (20) to thirty five (35) days later, the foreclosure sale should be final, resulting in the association being reimbursed for all associated costs. Of course, the association could elect to buy the property. Or the defaulting owner owes more than the property’s worth. Before any business decisions are entertained, the association should always consult with their attorney. 

For relative posts see, “Developers are in Business too Make Money” and “Fining Procedures for Homeowners Associations” and lastly “Condominium & Homeowners Rules for Parliamentary Procedures”. If you are the select few who donate their time to serve your Association and/or a Florida Homeowner, you do not want to miss any new posts. Please subscribe to our community. Or our complimentary email services.