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  • How to Amend Community Documents

    Amending condominium or cooperative bylaws can only be executed after a membership vote. If not provided for in the community documents, the State of Florida requires a minimum 2/3% of the voting interest.

    The amendment must contain the full text. Occasionally during minutes taking, we would refer to a title or number of a section for reference. A proposed amendment however, should always consist of the original full text. In this way the text can be added with an underline. And conversely, any words can easily be deleted from the text with a hyphen.

    See example of a standard proposed change:

    “No unit may be leased for a period of less than two weeks.”

                                           to

    “Individual units may be leased for a period of less than one month and no more than four (4) times per fiscal year.”

    Individual no units may be leased for a period of less than two weeks one month and no more than four (4) times per fiscal year.

    Simple changes can be proposed and should always be approved by the association attorney. If a change by use of underlines and hyphens would hinder rather than assist, then a more substantial change can be written. However, a notation must be inserted immediately preceding the proposed amendment. The association attorney should always make these extensive proposed amendments, or at least give his written approval.

    For supporting documents, click here. (more…)

  • How to Combat Against Known Chronic Complaniners

    Every association has a chronic complainer. Usually it’s the person out of one hundred (100) that always have to complain about something or another. A common nickname is condo commando, bellyacher or squawker. This person rarely has a resolution to a problem, only complaints. Condo commandos are always the first to attend Board meetings. In public some are quiet, while others are vocal and disruptive.  So what is the Board to do?

    Avoid and ignore bellyachers whenever possible is highly recommended.  But if the squawker goes as far as to complain by certify letter, directed to the association, only then, the Board is obligated to respond. The failure to respond in writing could prevent the association from recovering attorney fees and other costs, which could lead to arbitration.

    In an attempt to not forfeit recovering attorney’s fees and costs of any future litigation, due to failure to respond, there’re three (3) acceptable responses:

    1. Within thirty (30) day, give a substantive response.

    2. Notify the queries that advice has been requested from the division.

    3. Notify the queries that a legal opinion has been requested.

    Basically a substantive response is a response with substance and/or legal fact. Whoever can measure a substantive response is beyond us, so if in doubt, consult with the association attorney.

    If the inquirer involves the Department of Business and Professional Regulation (DBPR), then the board shall, within 10 days of its receipt of the advice from the DBPR, provide in writing a substantive response to the inquirer, or simply forward the divisions direction.

    For supporting documents, click here. (more…)

  • Financial Reporting Requirements for Homeowner Associations

    Reporting of financial requirements for homeowner association is identically the same as condominium law. The only difference is if the member of the homeowner association wishes to partition the level of financial reporting, only twenty (20%) of the total membership is required. If partitioning becomes successful, then a duly called members meeting would be mandatory to consider a higher level of financial reporting. A majority vote would determine the level of financial reports due for the end of the fiscal year.

    See below both condominium and homeowner association requirements for annual revenue reporting:  

    An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures.

    An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements.

    An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements.

    An association with total annual revenues of $400,000 or more shall prepare audited financial statements.

    Without a Members vote, Board of Directors at their discretion may elect to vote for a higher level of financial reporting for any fiscal year.

    Click here for supporting documents.

    (more…)

  • Financial Reporting Requirements for Condominiums

    The time of year is here to start preparing for all association’s annual revenue reporting. If the condominium is only fifty (50) units or less, or annual revenues are less than $100.000, then cash receipts would be automatic. The end-of-the-year statement, which is better known as the 12/31 (December, 31st.) would most likely already be prepared by the management company.

    If the association annual revenues are $400.000 or more, then the State of Florida requires a full blown audit. Paying for a full audit year after year would be costly and may be inconsequential. By approval of a majority vote of members at a duly called members meeting (usually Annual Meeting), the State allows for a waiver of the stringent reporting requirements. Regardless of the number of units or revenues, every seven (7) to eight (8) years all associations should arrange for an audit from a certified public accountant. (CPA).

    The State also requires the association to complete and send financial reporting to all members within a precise time frame.  In lieu of sending the statements to all members, which is also a costly task, the State allows for a notice stating, “that a copy of the financial statement will be mailed without extra charge upon written request.” It is local custom to add this statement with the Annual or Budget notices.
     
    For supporting documents, click here. (more…)

  • Common Overlooked Florida Requirements for Homeowners Associations

    Homeowner State requirements are looser than condominium associations. At a duly called homeowner meeting, the board can officially adopt a new agenda anytime without being regarded as an emergency. Also, a vote to add or delete agenda items is not required by the State of Florida. Depending on homeowner by-laws, minimum agenda posting requirements are the same as condominium. See, “ Common Overlooked Florida Requirements for Condominiums”.

    Special assessments for homeowner are handled the same way as condominium associations. Both entail a fourteen-day (14) notice indicating that a summed assessment is being considered.

    Directors for both types of associations do not vote by proxies or by secret ballots at board meetings. However, in the event of a director conflict of interest, or wants and needs, secret ballots can be exploited in-lieu of an open vote.  A majority director vote should determine if a secret ballot vote is necessary.

    For supporting documents, click here to view next page. (more…)

  • Common Overlooked Florida Requirements for Condominiums

    A typical Board of Director meeting requires a forty-eight (48) hour agenda notice. The notice should be posted in a conspicuous located on property. One (1) known location is all that is necessary. All agenda items should be incorporated in the agenda, before the meeting. During a duly called board of directors meeting, if a subject comes up without being identified on the agenda, the subject can be voted on, but only on an emergency basis. The vote should be noted in the minutes as an emergency agenda item. The State of Florida requires that an emergency vote shall only pass by a majority plus one (1) vote.

    By board meeting practices of the current Florida Statutes along with the governing documents, should keep all the Association’s records official. For supporting documents, see next page. (more…)

  • How to Find the Right Property Management Company

    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.