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We publish information daily to all of our Social Media Pages and Groups; sfpma marketing

We publish information daily to all of our Social Media Pages and Groups; sfpma marketing

  • Posted: Jul 10, 2022
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We publish information daily to all of our Social Media Pages and Groups; Facebook, Twitter, Google, LinkedIn …..Join follow and sign up become part of….

As a member are you sending us articles?

Are you using your membership to get infront of the decision makers?

Summer is here, Our team of over 77 are still working each and every day keeping everyone informed.

 

SFPMA uses Social Media to inform Clients, Members and Followers. Groups are open to everyone, we send and promote information about member companies that work together in the Property Management Industry.  Supporting each member company and information; getting this information out to readers new members and our industry is important to us!

Most companies do not realize how important it is to let others know what you do on a daily basis. We watch, we visit many of the social media pages for our members. What we see is alarming!. Far to many companies do not utilize what Social Media has to offer them. This is why we are always looking for posts that we can reshare we realize you are not!

By utilizing Social Media, Clients get to know and trust that your company is here to stay! These visitors and clients will reshare details that you post about workmanship, advances or just new work you have performed. When you are proud about what your company does, and share, viewers see this and reshare and like your pages. Great Lead Generation – And its Free. Put some work into your Social Media Presence.

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Property Management Requirements in Florida – SFPMA

Property Management Requirements in Florida – SFPMA

  • Posted: Jul 10, 2022
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Property Management Requirements in Florida

State of Florida Property Management Association; On our Website you can find on our Licensing Course Partners the Licensing Courses are offered to you to become a CAM Manager in the State of Florida!

 

Find out about Licensing and Board Member Courses

 

Questions and Answers you might have

1. Must a Florida property management company have a real estate broker’s license

YES. Key components of property management (renting and leasing) are considered a real estate activity under existing Florida real estate licensing laws. A property manager needs a brokers license if he or she is paid by commission, and is handling rentals and leases for others.

No license is required for managing personally owned properties. There is a “Property Manager” license or certificate you should have. Also, certain rental properties need a license through the Div. of Hotels and Restaurants.

 

2. Are there any exceptions to the requirement that a Florida property manager have a broker’s license?

YES. For example, if a property owner employs someone to manage their property, and that “employee is paid a salary”, as opposed to being paid a commission or on a transactional basis, a broker’s license is not required.

For more information about these and other Florida property management requirements and exceptions, please contact the Florida Real Estate Commission.

Before hiring a property manager to manage your Florida rental property, you should always check that he or she is licensed appropriately. You can check the license status of Florida property managers at the Florida Department of Business and Professional Regulation’s Licensee Search webpage.

3. Must Florida community association managers have a real estate broker’s license?

No. However, a Community Association Manager license is required if someone receives compensation for providing management services for the following types of associations:

  • An association with ten or more units
  • An association with a budget of $100,000 or greater

 

4. Florida Real Estate Broker License Requirements

Florida real estate broker licensing requirements include:

  • Age: Must be at least 18 years of age.
  • High School: Must have a high school diploma or equivalent.
  • Experience: Must have held a current real estate sales associate license for at least 24 months during the 5 year period immediately preceding becoming a licensed broker.
  • Education: Successfully complete a Florida Real Estate Commission approved pre-licensing course for brokers, consisting of 72 classroom hours and covering specified topics. Courses are valid for licensure purposes for two years after completion. In addition, successfully complete a FREC-approved post-licensing course for brokers, consisting of 60 classroom hours before the initial broker license expires.
  • Exam: Pass the Florida Real Estate Broker Examination with a grade of at least 75.
  • Fee: $115 ($20 application fee; $90 license fee; $5 unlicensed activity fee).
  • Application: complete and submit broker license application which is available online.

 

5. Florida Real Estate Salesperson License Requirements

Florida real estate salesperson licensing requirements include:

  • Age: Must be at least 18 years of age.
  • High School: Must have a high school diploma or equivalent.
  • Education: Successfully complete a Florida Real Estate Commission 63-hour sales associate course.
  • Trustworthiness: Must be of good moral character; must have a background check and submit fingerprints.
  • Exam: Pass the Florida Real Estate Sales Associate Examination with a grade of at least 75%

 

6. Florida Community Association Manager License Requirements

Florida community association manager licensing requirements include:

  • Age: Must be at least 18 years of age.
  • Education: Must complete at least 18 hours of pre-licensure education from an approved provider.
  • Trustworthiness: Must be of good moral character; must have a background check and submit fingerprints.
  • Exam: Pass the Community Association Management Exam.
  • Then Pay the License fee in your state.

Become a Property Management (CAM) in Florida

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Hurricane Preparation for your Building – Don’t wait, Make a Plan Today

Hurricane Preparation for your Building – Don’t wait, Make a Plan Today

  • Posted: Jul 10, 2022
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Hurricane Preparation for your Building

Don’t wait: Make a Plan Today

Finding Trusted Companies that work with our Industry is important!

We Provide Insurance Public Adjusters and Legal Experts Roofing Companies and cleanup and Tree and Lawncare Members to handle Storm Damage & Claims for your Properties!

Find more on our website >>>

FloridaAdjusting.com

WHAT WE PROVIDE CONDO & HOA’S

Property Inspections & Site Analysis

Review of your Insurance Policy

Damage Report Backing up the Claim

Loss Estimates Documentation

Negotiation and Settlement with Insurance Companies

 

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These new Florida laws go into effect on Friday July 1st.

These new Florida laws go into effect on Friday July 1st.

  • Posted: Jul 01, 2022
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On Friday, dozens of new laws will take effect in Florida kicking off the month of July. The laws cover a range of topics from school safety to smoking on the beach.

Here are a few of the laws that take effect July 1: 

THE FLORIDA CLEAN AIR ACT

This means smoking will no longer be allowed on Florida beaches. Local governments can restrict smoking on public beaches and in parks.  That also goes for littering: You could face a strict fine for tossing a cigarette butt on the beach.

Environmental experts say this will help not only the health of people but sea life too.

PARENTAL RIGHTS IN EDUCATION

Widely dubbed the “Don’t Say Gay” bill by critics, the law bans teachers from giving classroom instruction on “sexual orientation” or “gender identity” in kindergarten through third grade.

K-12 EDUCATION

A new K through 12 law concerning controversial books also goes into effect on Friday.

The law requires school districts to have a procedure in place that allows parents to see all of the books in the library and classroom.  The law also gives parents the opportunity to review all books and set curriculum standards.

Besides books, the law creates a 12-year term limit for school board members.

 

MIYA’S LAW

The new law will require apartment landlords to conduct background checks on employees, a response to the September murder of a Valencia College student. Criminal and sexual-offender background checks will be required for apartment-complex employees. Also, tenants will have to be given 24 hours’ notice before workers can enter apartments.

The measure was crafted after the death of 19-year-old Miya Marcano, who was found dead a week after she went missing from her Orlando apartment.

MILK BANK LAW

This will make it possible for low-income mothers to have access to free donated breast milk. The bill authorizes the Agency for Health Care Administration to pay for donor milk to distribute to families on Medicaid if they want it.

LOUD CAR MUSIC

HB 1435 will allow officers to give a ticket to drivers who are playing music so loud that it can be heard 25-feet from the vehicle. The bill specifically mentions car music playing too loudly near churches, schools, or hospitals.

NEW STATE DESSERT

The battle over dessert will finally be over!  On Friday, strawberry shortcake will be the official Florida state dessert. That’s leaving a sour taste in the mouths of people who have loved key lime pie all these years. However, key lime is the state’s official pie.

SCHOOL SAFETY

This law requires a more detailed security plan. It requires that schools have a guide to reunite students with family in the event of an emergency. The law sets rules for emergency drills requiring law enforcement officers who will be responding to the emergency to be there and participate.

It even addresses student mental health.  At least 80 percent of school personnel will be required to be certified in youth health awareness training, beginning July 1 of next year.

BOATING SAFETY ACT

Just in time for the July Fourth weekend, this is allowing the courts to impose a fine for boating collisions and accidents.

The law requires certain boating safety education courses or temporary certificate exams to include items like dangers associated with passenger safety, operating a boat or jet ski near a person who is in the water, and proper use of engine cutoff switches. It also mentions companies that rent and provide water sport activities and instruction must use a working engine cutoff switch.

FLORIDA TAX HOLIDAY

Stock up on those diapers! This is the opportunity to buy certain items, including diapers, without paying Florida state sales tax.  A tax holiday for children’s diapers, books, clothing and shoes will be in effect for one year.

School supplies including clothing, wallets, and bags will have tax exemptions starting July 25 and lasting until August 7. Now that hurricane season is here, you may want to consider buying impact-resistant windows and doors, which will remain tax-free for the next two years.

MENTAL HEALTH AND SUBSTANCE USE DISORDERS

The new law aims to change how Florida cares for these individuals by recognizing certified peer specialists as a support role in recovery. These are typically people who have recovered from substance abuse and mental illness and are helping others get through similar situations.
Under the new law, family members and caregivers will also be eligible for certification. Specialists must undergo background checks and pass a competency exam before being certified.

FLORIDA IDENTIFICATION CARDS

This new law allows Floridians easier access to those cards in cases of financial hardship or failing a driver’s test. If someone can’t afford a new card, they can get one for free as long as they have a valid voter’s registration card.

The same goes for anyone 80 years and older who cannot get a new driver’s license because they failed the vision test.

STUDENT ASSESSMENTS

The Florida Standards Assessments (FSA) will be eliminated and the State Academic Standards will take effect.

The law removes standardized testing in schools and replaces it with three different tests throughout the year to monitor progress. Those tests will take place at the start, middle, and end of the school year.

PERSONAL FINANCE EDUCATION BILL

Florida high school students will be required to take a financial literacy course as a condition for graduation.

The financial literacy course would have to include instruction on types of bank accounts and how to open and manage accounts, completing loan applications and computing federal income taxes.

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The age of a CommunityAssociation opting not to fund reserves is coming to an end

The age of a CommunityAssociation opting not to fund reserves is coming to an end

  • Posted: May 30, 2022
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The age of a CommunityAssociation opting not to fund reserves is coming to an end, and some homeowners could be facing a steep rise in assessments. Becker Shareholder Howard Perl surveys the landscape and offers a few suggestions of how to prepare.

After the Surfside tragedy, everyone wanted to know how such a tragedy could happen and what steps could be taken to avoid similar incidents in the future. What caused the collapse? Could it have been avoided? Why were repairs not made? Why did local governments allow repairs to drag on? Why were repairs not made in a timely fashion? Unfortunately, none of these questions can be answered quickly, and proper answers will require years of study and analysis.

The above questions, and attempts to enact legislative reform to address some of these questions, were a hot topic for the Florida legislature this year. Several counties and the Florida Bar convened task forces in the aftermath of the Surfside tragedy. Primary among the suggested legislative changes for multifamily buildings were periodic engineering inspections, reserve studies, and reserve funding mandates. While all agreed generally in regard to these reforms, at the end of the day, the Senate and House could not agree on the reserve funding issue and, as a result, nothing passed. Currently Florida law can allow for owners to opt to fund less than required reserves, or no reserves. Most legislative proposals included mandatory reserve funding of one type or another. The sticking point was how quickly to implement such mandatory reserves, without the option of owners being able to waive such requirements. Whether to implement immediately, effective in 2022, or over the next three or five years, to allow a gradual implementation, is ultimately what led to nothing being passed. Rather than compromise, which seems to be a forgotten word in Tallahassee these days, legislators could not, or refused, to come to an agreement for the benefit of all condominium and cooperative residents in Florida.

These issues are certain to be re-examined next year. As such, your association should begin recognizing what is most likely coming down the pike and preparing the association and its residents now. Most likely the days are gone when owners will have an opportunity to fully waive reserves. I anticipate mandatory reserve funding of some type will be implemented. Whatever version is implemented, the result will be an increase in annual maintenance assessments. Depending on what is implemented and your association’s current reserve funding situation, some owners may be looking at a significant increase in your 2024 assessments (as the laws I am discussing would be passed in 2023, and most likely effective for the 2024 association budget).

The association should be anticipating and working on these items now. For example, some sort of reserve study requirement is most likely coming. Budget for one now. Get proposals now. Have the study done now. Once mandated by statute, demand will go up, availability will go down, and of course prices will go up. We are seeing exactly that scenario now in regard to structural engineers and 40/50-year recertifications.

In regard to reserve funding, take a good look at your reserve schedules. Get updated estimates of repair costs. Factor in inflation when projecting 10 and 20 year replacement items such as painting, roofing, etc. Any effort to increase your 2023 reserve balances will help lessen any blow of 2024 mandated reserves. Explain these issues to your residents now. Many associations are understandably involved with 40/50-year recertification requirements and other life-safety related issues. Obviously these issues need to be addressed immediately and on an expedited basis. But associations and their members should keep their eye on long-term remedial requirements as well. More oversight; more required inspections; more required repairs; and more required reserves. All of these are good things for 40–50-year-old buildings in a saltwater environment in Florida.

The outcome of the 2022 legislative session once again underscores the inherent problem when all community association ideas are placed in only one omnibus bill. Until our legislators acknowledge this problem and start using stand-alone bills for important proposals, there is always the risk that needed reforms will not pass.

Contact your legislators, tell them you welcome these types of reforms, but they need to be addressed as needed, not all under one take it or leave it omnibus bill. Work with your association leaders on the above discussed items. Don’t be surprised by increased annual assessments, special assessments, and other upcoming expenses. They are coming. Prepare now.

 

Howard Perl is a Shareholder in Becker’s Community Association practice and has been involved in all aspects of community association law, including transactional, collections, mediation, arbitration, construction defects and litigation. He is also Florida Bar Board Certified in Condominium & Planned Development Law.

Florida passed the statewide Condominium Safety Bill in Wake of the Surfside Building Collapse back in June of 2021. This is a major, positive change moving forward in the safety of the condominiums.

Florida passed the statewide Condominium Safety Bill in Wake of the Surfside Building Collapse back in June of 2021. This is a major, positive change moving forward in the safety of the condominiums.

  • Posted: May 27, 2022
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Florida passed the statewide Condominium Safety Bill in Wake of the Surfside Building Collapse back in June of 2021. This is a major, positive change moving forward in the safety of the condominiums.

What does this bill entail?

  • Recertification is now required after 30 years, or 25 years if the building is within 3 miles (5 kilometers) of the coast, and every 10 years thereafter.
  • Condominium associations would be required to maintain sufficient reserves to cover major repairs, and to conduct a study of the reserves every 10 years. Inspection reports would be provided to owners by the condominium association, and if structural repairs are required, owners would be notified and work must start within a year of the report given.
  • If the building’s certificate of occupancy was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024.

 

The structural integrity reserve study at a minimum, must include:

  • Roof.
  • Load-bearing walls or other primary structural members.
  • Floor.
  • Foundation.
  • Fireproofing and fire protection systems.
  • Plumbing.
  • Electrical systems.
  • Waterproofing and exterior painting.
  • Windows.
  • Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed in subparagraphs a.-i., as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.

Looking ahead:

The State of Florida Property Management Association (sfpma.com) and the many members are offering their services.  On our members directory Condo & HOA’s all over the state can find the top rated companies to handle their buildings inspections, engineering, fire safety inspections, roofers, painting and waterproofing, plumbers and electricians for all of your Building Maintenance repairs.

On top of these are the Law Firms, that help with making sure your buildings are legaly ready for the changes.

We understand with all of these changes each condo and hoa will need help with funding the reserves into the future, so we did not forget this: Our industry members include the top financial companies, ie: Banks and Loan companies ready to help wth your investments. Act now start saving and growing your reserves, at times you will also need to get  your accounting and bookkeeping with the added help from our collections members to make sure you cn get the funding to perform the many needed repairs.

SFPMA MEMBERS DIRECTORY IN FLORIDA FIND MEMBER COMPANIES FROM TALLAHASSEE TO THE KEYS.

Largest Florida Directory of Companies working with Property Management, Condo and HOA properties.

If you are not listed become a member today!

Florida passes condominium safety bill in wake of Surfside

Florida passes condominium safety bill in wake of Surfside

  • Posted: May 27, 2022
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A bill has been sent to Florida’s governor that would require statewide recertification of condominiums over three stories tall, in response to the Surfside building collapse that killed 98 people

TALLAHASSEE, Fla. — Florida would require statewide recertification of condominiums over three stories tall under a bill sent Wednesday to Republican Gov. Ron DeSantis by lawmakers, their legislation a response to the Surfside building collapse that killed 98 people.

The House unanimously passed the bill during a special session originally called to address skyrocketing property insurance rates. The condominium safety bill was added to the agenda Tuesday after an agreement was reached between the House and Senate.

Recertification would be required after 30 years, or 25 years if the building is within 3 miles (5 kilometers) of the coast, and every 10 years thereafter. The Champlain Towers South was 40 years old and was going through the 40-year-recertification process required by Miami-Dade County when it collapsed last June.

At the time, Miami-Dade and Broward counties were the only two of the state’s 67 that had condominium recertification programs.

“We have actually made positive change knowing that condominiums will be safer moving forward,” said Republican Rep. Daniel Perez.

The bill would require that condominium associations have sufficient reserves to pay for major repairs and conduct a study of the reserves every decade. It would also require condominium associations to provide inspection reports to owners, and if structural repairs are needed, work must begin within a year of the report.

Similar legislation failed during the regular session that ended in March.

The condominium measure was attached to a bill that would forbid insurers from automatically denying coverage because of a roof’s age if the roof is less than 15 years old. Homeowners with roofs 15 years or older would be allowed to get an inspection before insurers deny them coverage.

While some Democratic lawmakers complained that the special session on insurance didn’t go far enough to help relieve homeowners, they did praise the addition of the condominium safety legislation.

“This bill makes this trip worth it, at least for me,” said Democratic Rep. Michael Grieco, whose district borders Surfside. “I know folks who lost people in that building.”

Recertification would be required after 30 years — or 25 years if the building is within three miles of the coast — and every 10 years thereafter.

The House sent the bill to Republican Gov. Ron DeSantis on Wednesday.

The House unanimously passed the legislation during a special session on skyrocketing property insurance rates.

Recertification would be required after 30 years — or 25 years if the building is within three miles of the coast — and every 10 years thereafter.

Nearly a year after the catastrophic collapse of Champlain Towers South in Surfside, Florida lawmakers on Wednesday gave final approval to legislation that will require condominium association boards to set aside money in reserves to cover future repairs starting in 2025. Current law allows them to waive the requirement.

“They are allowed to do that, and most of them are doing that today. They’re doing that because they are kicking the can down the road and not wanting the cost,” said state Rep. Danny Perez, R-Miami. “So moving forward, the structural integrity of a condominium will be reserved, they will be maintained, and they will be kept up to par so that future condominiums never have to worry about another Surfside taking place.”

The measure, which was approved by the House on a 110-0 vote and now heads to Gov. Ron DeSantis, would also require condo boards to conduct reserve studies every decade to make sure they have the resources to finance needed structural repairs. The proposal would also open up condo board members — many of them volunteers — to lawsuits if they ignore inspection requirements.

At play in Florida will be how to mandate reserves and maintenance to prevent tragedy and prepare associations who will need to make decisions that will likely cost homeowners more money.

“The compliance timeline is a few years away to afford an opportunity to smoothly transition,” the Senate sponsor of the bill, Sen. Jennifer Bradley, R-Fleming Island, said. “Additionally, the Legislature will remain engaged as condos and associations work to implement these changes.”

Bradley said she knows the changes to the state’s condo law will be a disruption to the status quo for many condos, but she says, “the safety of Floridians must come first.”

‘First-of-its-kind’ inspection requirements

“The creation of a first-of-its-kind statewide system of milestone inspections for our aging condos and providing transparency and disclosure to local officials, unit owners, and renters are significant measures that will save lives,” Bradley said.

There would be two phases to inspections. If a visual inspection by a licensed architect or engineer authorized to practice in Florida reveals no signs of substantial structural deterioration, no further action is necessary until the next required inspection. If structural deterioration is detected, a second phase of testing is required to determine whether the building is structurally sound.

The changes to the state’s condo laws emerged on Tuesday afternoon during a special session that Gov. Ron DeSantis called to address Florida’s failing property insurance market. The deal came after months of negotiations between lawmakers.

On Wednesday, Perez said the reserves provision was “the most important” part of the bill. House Speaker Chris Sprowls, R-Palm Harbor, thanked him for standing his ground, telling him that “people in the state of Florida are safer because of your efforts.”

 

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Attn: Our internet and phone systems are down due to construction next to our Main Office.

Attn: Our internet and phone systems are down due to construction next to our Main Office.

  • Posted: May 16, 2022
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Again we find ourselves without Internet and Phone System.

Our Offices were again impacted by a severed communication line, the neighboring construction has cut through a communication line four times in the last 2 months.  This morning speaking with the construction foremen he stated they would do everything they can to get the building back on line……but they have to have this repairs done by the communications company / Comcast.

Please contact us by Email:  membership@sfpma.com 

all phone lines (voip) are down through the internet.

Sorry for any inconvenience.

SFPMA

Facing South Florida: Condo Safety Concerns TV host: Eric Glazer watch it now!

Facing South Florida: Condo Safety Concerns TV host: Eric Glazer watch it now!

  • Posted: May 15, 2022
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Jim DeFede’s guest for Sunday’s show was Eric Glazer, one of the state’s leading condo attorneys who has been pushing for years to make condos safer.

Glazer has been warning about a tragedy like the one in Surfside.

The two discussed, among other things, why the legislature failed to pass anything during its session.

Glazer also said why he believes Gov. Ron DeSantis has refused to do anything to make condos safer nearly a year after the deadly building collapse.

Watch the Program NOW.

Join KBR’s Peter Mollengarden for delicious hot breakfast with awesome education (2 CEUs)

Join KBR’s Peter Mollengarden for delicious hot breakfast with awesome education (2 CEUs)

  • Posted: May 15, 2022
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Join KBR’s Peter Mollengarden for delicious hot breakfast with awesome education (2 CEUs)

The West Palm Breakfast Group!
Wed., May 18, 2022 | 7:30am | PBI Holiday Inn
Peter C. Mollengarden, Esq., from KBR, with also be there.
Not close to Palm Beach Airport, or know of someone who will benefit from this seminar?
Please feel free to share this email!
“These are Not Your Mother’s Appliances”
Course #: 9631376 | Provider #: 0007779 | 2 CE credits in OPP for CAMS
Courses presented by:
Fred Kaye | A-1 Appliance & Refrigeration Repair
Everyone who attends will get a FREE GIFT of charcoal for their refrigerators! Yes…charcoal! Come join us and find out WHY!
There will be a delicious, free hot breakfast and door prizes!
Airport (PBI) Holiday Inn: 1301 Belvedere Rd., West Palm Beach, FL 33405
Kaye Bender Rembaum | Visit Us Online
Pompano: 1200 Park Central Boulevard South; Tel: 954.928.0680
Palm Beach Gardens: 9121 North Military Trail, Ste. 200; Tel: 561.241.4462
Tampa: 1211 N. Westshore Boulevard, Ste. 409; Tel: 813.375.0731
Offices in Miami by appointment: 800.974.0680
Is your community association prepared to raise dues 10-15% or more in 2023?

Is your community association prepared to raise dues 10-15% or more in 2023?

  • Posted: May 04, 2022
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Is your community association prepared to raise dues 10-15% or more in 2023?

Inflation is currently at its highest level in 40 years. And it does not appear to be going down anytime soon. Last year, the inflation rate hit 7% and by February of this year it increased to 7.9%. Consumers have seen prices of everything from gas to groceries increase.

As you can see from the chart below, we have been very fortunate with inflation rates hovering around 2% for the last 10 years, as represented by the green line.  While in the last 30 years, we have rarely exceeded 4%, as represented by the red line.  Now, we are faced with 8%, which again, we have not seen in over 40 years.

Inflation has already affected many community associations with many raising their dues between 3-5% for the 2022 budget year. But that increase was not enough especially with the continued impact of insurance, labor, and material increases. Most community associations need to be prepared to raise dues 10-15% in 2023 to combat inflation.

Homeowners are usually not happy when dues go up. However, as expenses for communities increase, so does the need for an increase in the dues. Now is the time to prepare your residents for an increase in dues in 2023 so they are not blindsided.

Here are some of the items in most community associations that are increasing in cost:

  • Landscaping costs – Prices for materials, gas and fertilizer have all increased causing landscape companies to raise prices. Supply shortages fueled by the Ukraine-Russia conflict (Russia is one of the main suppliers of fertilizer around the world) have caused fertilizer prices to go up 30%.
  • Property Management – Labor shortages for maintenance, janitorial and even admin and property manager positions mean the cost of labor has gone up as property management companies try to attract talent with higher salaries and better benefits.
  • Labor costs – The great resignation has played a major role in the rising cost of labor. Legions of workers, especially those in low-wage positions leaving their jobs means employers need to pay more to get workers to show up.
  • Maintenance and repair costs – As a direct result of the global supply chain shortages, prices have soared. Associations need to factor in higher costs for the regular maintenance of their communities. Outside vendors such as pool companies have raised their prices and many parts are simply much more expensive than they used to be.
  • Premiums for insurance – Insurance increases are on the rise; where there is an incumbent on the deal, we are seeing 15-30% increases on insurance. And, where there is a replacement carrier required, we have seen rate increases in the 50-100%+ range. Click here to view a recent webinar we held on the current insurance market.
  • Project costs – There is no doubt that any large projects your community needs to get done are going to cost more. Material prices overall are up 20.3% since 2021. Add in the labor shortages and supply chain constraints and not only are projects going to cost your association more, they are also going to take longer to complete.

For most community associations, the budget for 2023 will reflect higher anticipated expenses, which means dues will need to increase. Now is the time to prepare your residents for this increase. This year is unlike any other year. You CAN NOT rely on “standard” budget raises and expect to be able to pay your bills in 2023. You should NOT wait until the end of the year, hoping this will change. You need to start planning NOW and letting your owners know NOW.

Throughout the remainder of 2022, we will have a blog post each month discussing this inflation storm and offer tips for your association to ride it out.

by Ashley Dietz Gray, VP Marketing