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Find Blog Articles for Florida’s Condo, HOA and the Management Industry.
Thinking outside the box can be great, especially in the homeowners association and condo association industry. It’s what makes our signature collections process here at Axela so successful.
But out-of-the-box thinking can be used against you, too. Attorneys are always looking for new ways to make the most money, even HOA attorneys. Time and again we’ve seen the tricks they use claiming to try to collect for your association, but really they’re just lining their own pockets. So often, using an HOA attorney ends with the association losing the money owed to them, and having to pay on top of that to cover lengthy legal efforts that didn’t succeed anyway.
Every time we hear stories about the crazy lengths some lawyers will go to when collecting for HOAs or condos, we start to think maybe the box is there for a reason.
A while back we talked about a community in a sticky collections situation. One of their unit owners had passed away, leaving a mortgage-free title to an heir. But, it came with a $13,000 tax certificate (which had been sold to an investor) and $17,000 owed to the association, as well as a tax-deed sale that had already been set. The perfect storm for the association to lose out on a hefty chunk of change. Now Axela was able to draft a clever plan to avoid that and had to act quickly to make it work, but if we hadn’t been called in, here’s what would have happened:
The HOA’s attorney wanted to let the unit go to the tax-deed sale and then file a suit for something called “unjust enrichment.” This is a claim basically stating that someone (in this instance, the investor who’d purchased the tax certificate) was paid at the expense of someone else (the association).
This is a risky play for a lot of reasons: first, if the tax sale goes through, the money owed to the association is ‘wiped out,’ meaning there is no chance of recovering money from the sale or from the owner after the fact. Additionally, if the judge found that the investor was not unjustly enriched (which is the likely outcome) their tax lien would have been rightly prioritized over association fees.
So the idea of unjust enrichment was a wild reach that was almost certainly going to be unsuccessful in recovering for the association. But it would have been a definite way to tack on a ton of hours in legal fees for the attorney, wouldn’t it?
Fishy lawsuits aren’t the only questionable trick attorneys have up their sleeves. One client we worked with had an attorney attempt to completely ignore state statutes by advising the Board to modify the community’s governing documents to contradict state laws. This was complicated and unethical for several reasons, like the fact that governing documents don’t overrule state statutes (something an HOA attorney would be WELL aware of!) so the attorney’s time and counsel which they charged the association for were totally unnecessary.
To add insult to injury, these changes were made to try to force the bank to take responsibility for debt owed to the association, creating a lengthy legal battle as part of this ridiculous plan. Again, we’re seeing a trend of attorneys being paid but the association not recovering their lost income – in fact, the community often winds up owing the attorney more for their efforts and having to write off the bad debt from the delinquent assessments. Talk about throwing good money after bad!
Clearly, all HOA attorneys are not the same, and we hope that your community association’s attorney is an upstanding and ethical partner for your community. You need your attorney to be available to advise you on decisions the Board makes to help prevent future lawsuits and to deal with any that do come.
But your attorney is just one of the tools in your community association’s toolbox. Just as you wouldn’t use your HOA attorney (and pay their high fees) to perform management tasks, you also shouldn’t be hiring your attorney to perform collections. The attorney’s only recourse is to take the issue to the courts. That means pursuing foreclosure, or, if that’s not likely to be successful, trying some legal scheme like these that will get the attorney paid for their time, but is unlikely to end with money in the association’s pocket.
Thinking outside the box can be great, but the more we hear about the crazy legal hoops attorneys find to jump through that only seem to take advantage of the association, the more we think that they need the box.
There’s at least one ethical, merit-based way that has a 95% success rate when it comes to collecting debts owed to associations: Axela. Our proprietary technology and process empowers defaulted homeowners to set up payment plans they can actually pay off, rather than harassing them for lump sums of money they’ll never be able to repay, or putting them out of their home in a foreclosure.
Tags: Collections, Management News
Proud of our hard working installation crews who are dedicated to supporting Property Managers throughout Florida. Our culture is built on pride of customer service. At House of Floors we are just one spoke in the wheel for our Property Management clients.
Wishing our friends, clients, vendors, and all our associates a peaceful and relaxing holiday.
Also Owners of Flash Restore.
At Flash we have developed a unique set of Standard Operating Practices that are supported by a strong back office team, and well trained field technicians. It is imperative that we perform the highest-quality work, and just as important that we can prove our work to our customer. A Scope and Estimate are always provided for review, communication and documentation begins as soon as we get eyes on a job, and daily progress updates are sent each day of an open job. Finally, each job performed by Flash is documented in detail in our Evidence Documentation Packet (EDP) (Remote owners especially appreciate this process).
Success is best measured by customers that request additional work, refer Flash to others and/or are willing to commit to longer term relationships. The feedback and response from Property Managers, Insurance Carriers, Hygenists/Assessors and Homeowners have been overwhelmingly positive. We’re different, and we’ll prove it.
Once a water-related emergency occurs, it’s critical to act quickly. Water moves fast and does incredible damage and remember water will flow until something stops it. Once it hits a surface like a wall, molding, or the foundation, it starts to fill up, and it can wick up into drywall, wood, and plaster in a matter of hours. That’s why it is critical to contact the professionals at Flash Restore as soon as possible. They are always available, even in the middle of the night. Remember, the more time that passes, the more damage that can occur.
Tags: Flooring
PSI Roofing has built a successful history of installing high-quality commercial roofing systems with unmatched attention to detail for customers who demand the best the industry has to offer.
Our clients range from office buildings, manufacturing and industrial warehouses, condominium associations, healthcare facilities, storage facilities, schools and universities, shopping centers, churches, federal government and armed forces facilities. Check out our portfolio of completed projects!
The following are types of roof systems installed by PSI:
Once your project is under way, you will have online access to all information about your re-roof project through our Client Portal Service. This option provides access to all relevant job documentation. This includes job progress photos, maintenance history, building condition and equipment inventory, warranty information, and invoice status that are interlinked with a rational database. All information is kept on secured remote servers in order to protect your sensitive data and is accessible through a secure web portal through our website.
Tags: Management News, Roofing Articles
These recent days, we are going through some real problems such as an increase in energy usage. Also, when it comes to solving these problems, people cannot really think of the solutions. Hence, we are here to provide the solutions on How to Reduce Commercial Energy Usage.
Thus, here are some tips to reduce energy usage:
The equipment functioning should be regularly checked now and then. There should be a proper check of the equipment, and even it should be double-checked. This can also lead to the improvement of the equipment in commercial settings.
Air compressors are one of the best solutions to reduce energy reduction. The drive motor is the main element of the air compressor. And, the latest systems allow for these drives to use a change in frequency that reduces the power that the drive is requesting (depending on load).
Plants and trees must be planted on the south and east sides of your commercial building. These plants and trees will provide proper shade in the summer, which leads to a reduction in the cooling load, and will allow sunlight to enter your building in the winter, reducing the heating load as well.
If you have old and outdated lighting LED lighting can make a quick, moving impact on your energy consumption. Converting your old lighting to LED lighting may result in a decrease of up to 60% of the electrical costs of your daily lighting energy consumption. LED lighting also has some additional benefits such as less heat generation that results in reducing your air conditioning load as well as reducing your maintenance costs as well.
Getting your employees to participate in energy-saving rituals is an effective way to help decrease energy expenses. You can also create incentives or competitions to check how low a commercial property can get their average energy to spend per month is quite an innovative way to boost employees toward saving energy.
Hence, these were some of the tips on How to Reduce Commercial Energy Usage and specifically when you can just change certain lifestyle habits. Thus, you can just introduce these tips as rituals in your commercial property to reduce energy usages very effectively.
About Us
Lighting of Tomorrow is commited to providing our clients energy saving lighting solutions. We provide a complete service, so we can continue “lighting the way for a sustainable tomorrow”
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Whether they fly, creep, sting, or swarm, pests are a persistent problem for Floridians—and they can do serious damage if they’re not kept in check. At Pioneer Pest Services, we understand that pests need to be taken care of promptly and effectively. That’s been our mission for the past three decades! A local, family-owned company, we’re committed to quality service for residential and commercial customers in Volusia, Flagler, Seminole, and Lake counties. RELIABLE PEST SERVICES SINCE 1985
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Tags: Board of Directors, Management News, Pest Control Articles
The collections process isn’t a fun one, and depending on what causes delinquency, it can get complicated. A homeowner who falls behind on just their association payments is one thing, but someone who’s so behind on all of their financials that they have to declare bankruptcy is a very different story. We’re asked all the time about what happens when a condo or HOA has to deal with homeowner bankruptcy. If your association is dealing with a bankrupt homeowner who is not paying their post-bankruptcy amounts, there are decisions to be made and steps that can be taken. Let’s review what must happen and how the community association can best navigate this situation.
What Happens When Bankruptcy is Filed?Filing for bankruptcy isn’t a quick process. When a person, known as the “petitioner,” files for bankruptcy, they must file a list of their creditors with the bankruptcy court (which is a federal court). The creditors will be noticed with a “bankruptcy notification” and will be given a time frame by which to respond, usually under two months. Government claims can be submitted up to six months after the petition date (it’s good to be the government.)
There is no requirement that the response (or proof of claim) from the creditor must be submitted to the court via an attorney, which is good for you–the less an association is required to spend on costly attorney fees, the better. This proof of claim can be submitted by the association directly, the management company, or by a collections partner like Axela. Just be sure that everything that is legally owed to the association is included on that proof of claim–this should include assessments, late fees, late interest, fines and violations, special assessments, and any other sundry items that have been charged to the property. Be sure to double-check the ledger because it is expensive to get a second bite at that apple if you find you want to amend your claim with the court.
From there, the bankruptcy court will hold a “341 meeting,” which is a meeting between the debtor and the creditors but it is not mandatory for any creditor to attend. Then comes the really complicated part.
It is important to know what type of homeowner bankruptcy you are dealing with as this knowledge will direct your business decisions going forward. When a property goes bankrupt in a community association, the community needs to prepare two ledgers: a pre-petition ledger and a post-petition ledger. You cannot add the post-petition amounts to the bankruptcy claim because next month’s bills are not this month’s debts. Regardless of which kind of bankruptcy they have filed, the petitioner has an obligation to pay the post-petition amounts during the bankruptcy. If the delinquent owner is NOT paying their post-petition debts, the association needs to make a decision and take action immediately, and the type of bankruptcy will determine which steps to take
Chapter 7 bankruptcy, also known as “no-asset” bankruptcy, is a complete wipeout. This means that no money will be recovered from the pre-petition amounts. A Chapter 7 bankruptcy case can take as little as six months to complete because there is no settlement to be made. Creditors can claim to the court that there are assets being hidden but, in most cases, it is all over fairly quickly. If the delinquent owner is not paying the post-petition amounts, then the association can wait until the case is discharged and then move forward with collections activity. If the owner has been paying their post-petition amounts, then the issue is resolved albeit the association has taken a hit.
Chapter 13 bankruptcy is known as a “wage earners plan” and is a workout where the court will make a settlement and oversee it until the payment plan has been completed. This is when the association needs to make a business decision.
In a Chapter 13 bankruptcy case, the pre-petition debts will not be discharged for 3-5 years, and the petitioner remains in bankruptcy. If they are not paying the post-petition amounts, the association cannot submit the delinquency for collections or to an attorney for foreclosure. The only course of action is for the association to ask the court for an “injunctive stay of relief” which is essentially asking the court to allow the association to move forward with collections and or foreclosure efforts.
If a unit owner files for Chapter 13 bankruptcy and is not paying their current assessments, it is not a stretch to believe that most likely they will never pay. It is unfair that the association needs to wait three to five years until the pre-petition debts are paid, the delinquent owner is discharged from bankruptcy, and the association can finally move forward. As we mentioned above, if a delinquent owner has filed for Chapter 13 bankruptcy and is not paying their current assessments, the association should file with the court a motion for injunctive relief. During the gap period, section 1519(a) of the Bankruptcy Code states that a bankruptcy court has the power to grant provisional injunctive relief and certain other forms of relief where “relief is urgently needed to protect the assets of the debtor or the interests of the creditors.” Additionally, an order staying execution against the debtor can also be granted. If a property owner is not paying their assessments, then the case can be made that a stay order is required to protect the assets (the property).
The same way you’d handle any other bankruptcy situation in your association: call a professional. Homeowner bankruptcy in your association can be managed and worked through, but it takes a lot of knowledge and a lot of time. Many times, when a management company or a board of directors is reviewing delinquencies, the units that are delinquent and are also in bankruptcy get glossed over. There is a feeling that once a delinquent owner files for bankruptcy, the association has no options other than to wait until the bankruptcy is discharged. This is not the case as there are options and every case is unique. Axela Technologies has the experience, knowledge, and experience to deal with all these contingencies. Call us today for a no-cost, no-obligation analysis, and review of your delinquencies.
Mitch Drimmer
President of Business Development
Axela Technologies
Mitch Drimmer is a respected thought leader in his field and has led numerous continuing education classes in collections, His articles have been published in key trade journals and newspapers, and he is a speaker at educational seminars.
As the President of Business Development for Axela Technologies, Drimmer works with community associations and their management companies to introduce innovative strategies to collect delinquent maintenance fees.
Throughout his career, Drimmer has worked with community associations to help them see their way through tough times, especially during the real estate crash. He is a passionate advocate for community associations and has participated in the legislative process over the years trying to bring fair and equitable legislation that serves community associations.
Drimmer earned a Bachelor of Arts in History from Hunter College in New York City, and has worked in the community association collections space since 2007.
They deliver services to residential, commercial, municipal, and utility clients in Michigan and Florida! With a desire to break stereotypes and bring the tree service industry into the 21st century, Corey designed a business with unparalleled service.
Entering the market, Corey saw opportunity in the outdated practices that ensnare other companies. He understood the pitfalls in the tree service industry and decided to do his part to change it. He saw under-serviced clients and poor service in general. Using his entrepreneurial spirit, he started his own company to address these problems. Leveraging changes in technology, Parshall Tree Care aims to challenge themselves with creative ways of thinking, always looking to push the industry further.
Corey’s biggest challenges are the unknowns. In the early stages of running his business he experienced a lot of trial and error, discovering this was the most expensive way to learn and grow. Rather than bleeding money, Corey started investing in resources to grow his team instead. He found mentors that could help with problem-solving and educate the team. Before he knew it he had a clear roadmap that prevented him from constantly having to relearn everything.
With a mind focused on the positive, Corey believes your goals are within reach. A negative outlook can erode your confidence in taking calculated risks, while a positive outlook brings opportunity. Corey has noticed that when he keeps a positive mindset relationships line up, doors open, and he is generally luckier as an entrepreneur. By overcoming his biggest obstacle of thinking small, he found great success by intentionally setting unobtainable goals just to see what he and his team can achieve. Corey pays attention to fears that creep up when goal-setting. To him, fear is a communicator that action is needed to reach the desired opportunity.
For anyone interested in starting their own business, Corey recommends setting outrageous goals. He recommends anything considered to be a “good goal” should be multiplied by 1000 because you will probably underestimate rather than overestimate. Low expectations lead to boredom and if your business is boring you’re more likely to give up. Once you have a plan set, Corey suggests finding mentors, even if you have to pay for them. Learning from the experience of others saves you time and money in the long run.
Success, to Corey, is building a team that includes his family. In doing so, they find freedom from being tied down by that which is out of their control. He finds financial freedom knowing he and his family enjoy a better quality of life, and he has a legacy to share with generations to come. He loves sharing his success with his team as they experience the same freedom. At the end of the day, Corey’s dream is to see the entire tree service industry revolutionized—that they can leave a generational impact and improve an outdated industry.
Corey is so grateful to his staff for everything they do to help carry out the company’s mission, and to his clients who trust him to provide his service. He knows he can’t make a difference in the tree industry without either piece missing. This company isn’t about Corey Parshall, but the Parshall Tree Care Experts revolution. Parshall Tree TV, a free educational platform, is the latest division of the company.
also have plans to grow their new offices in Ohio and Indiana, then expand toward the eastern US to Florida. But Corey’s ultimate goal is to be known as the industry leader in the tree service community.
Corey Parshall
Founder
Parshall Tree Care Experts
corey@parshalltreecare.com
877-250-2060
http://parshalltreecare.com
Tags: Budgets, Management News, Members Articles
Most community associations have their budget meeting in the month of November for the upcoming year. By doing it in November there is plenty of time to print new coupon books and let the community members know what the new monthly assessments will be for the coming year.
In terms of notice, in a condominium the budget must be sent to the owners at least 14 days before the budget meeting. In an HOA, The association shall provide each member with a copy of the annual budget or a written notice that a copy of the budget is available upon request at no charge to the member.
Don’t forget that in a condominium, in addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000.
Condo boards need to be well aware of the reserve requirement. To be clear, the Board MUST send out a budget that includes fully funded reserves. That is all they are required to do. However, if they want to, they can give the owners the opportunity to vote for an alternative budget such as a budget that contains no reserves or partially funded reserves. Remember that if a majority of a quorum of owners does not vote for a budget that does not contain full reserves, fully funded reserves shall go into effect.
In a post Champlain Towers world, I think things may be a little different this year. I think lots of Board members will want to have fully funded reserves in their budget. They don’t want to be short millions of dollars when the time comes, and it will, for millions of dollars in repairs.
Delinquencies are starting to pick up as well. So, make sure you have a line item in your budget for “bad debt.” For example, if your assessments are $6,000.00 per year and you’re pretty sure that 5 owners won’t pay a dime, you should put $30,000.00 as an line item in your budget for bad debt. That way you collect enough money to pay the bills.
Keep in mind that electricity prices are expected to rise 18%. Also remember that some of your long term contracts may have clauses requiring automatic rate increases every single year. F I still get the same question all the time…who passes the budget; the board or the unit owners? The answer is…the board and only the board. Food prices are going up, the cost of materials are going up, electricity is going up, the cost of labor is going up, and worst of all, insurance rates for condominiums are simply skyrocketing, with some associations complaining that their rates have tripled. So, all this means in no uncertain terms, that condo assessments are about to go up as well. It also seems pretty clear that it will become extremely difficult if not impossible to waive reserves starting next year. Yes, it’s about to get a lot more expensive to live in a condominium, especially if you were kicking the can down the road and always waiving reserves. I don’t envy condo boards at their next budget meetings where they will be forced to tell the members of their community that their monthly assessments are about to go up, in fact way up. Buckle up everyone in a condo, you’re in for a bumpy ride going forward.
Tags: Budgets
This open Directory is avail for all to view, in budget season you should be looking for the right companies for your buildings and Owners within, Find and reach out for the services they offer you and your communities.
United Security Inc. (USI) provides contract security solutions and investigation services to a select group of vertical markets. For the past 29 years, USI has created safe, secure environments for commercial and government employees and customers by investing in our people, innovation and relationships. USI is committed to delivering:
For the past 27 years, USI has created safe, secure environments for commercial and government employees and customers by investing in our people, innovation and relationships. As engaged, owner-operators, our investment begins with recruitment and screening to ensure we have the right people and continues through our policies and practices that enable USI to properly train and retain the best personnel.
After years in parking compliance and towing services, we saw a real need for organized, reliable, and effective security services for residential and commercial property managers.
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In this modern age, it is never wrong to be extra careful when it comes to hiring security. We should do all the things necessary to ensure our property and loved ones’ safety.
Hire our expert crew here at FSW First Response Solution Inc. We are a family-oriented organization that provides safety and security solutions to every household and establishment in Florida. Contact us to request for free quotes and estimates!
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iDentyTech is a leading provider of intuitive Identity management products and solutions. Founded in 2010 IdentyTech™ provides its worldwide customers with best-in- class complete identity management solutions. We further offer custom engineered solutions for those customers requiring proprietary solutions. IdentyTech has field proven solutions for Corporate Enterprise, government and Financial services, healthcare, schools, Transportation, Small Medium businesses and many others.
With over 15 years’ experience in the industry, our team will respond rapidly to your needs, no matter how complex or unique they are. Matched by business-focused, technical support, our response to your objectives has led to the highest levels of customer satisfaction in the industry. At the heart of the company, is a team of skilled developers, programmers and technical support staff, Along with sales, marketing and administration staff that are committed to providing our customers with unrivaled solutions, expertise, service and support.
Rodrigo Perez de Tudela
305-505-7132
rodrigo@identytech.com
Sales and Business Development Director
iDENTYTECH Solutions America, Inc.
Tags: Condo and HOA, Security and Safety Articles
SFPMA works throughout the State of Florida, we are a multi-member organization for the Condo, HOA and Property Management industry. Through knowledge based Articles, Events and our Members Directory, Clients find the right information to make an informed decisions for their Florida properties.
