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SFPMA Industry Articles | news, legal updates, events & education! 

Find Blog Articles for Florida’s Condo, HOA and the Management Industry. 

6 Community Association Management Trends to Watch in 2023

6 Community Association Management Trends to Watch in 2023

  • Posted: Aug 09, 2023
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Interesting research on the community association industry. Especially, given that seventy-eight percent of new homes for sale are located in community associations. There are 358,000 associations across the country, and it’s estimated that 5,000 more will be formed in 2023. Here presented are six trends that CAMs and boards are likely to see, including the absence of new board members. However, I think it is less to do with apathy than before Surfside and more to do with risk associated with a voluntary, unpaid, thankless job.

As part of our cross communications with other groups we are posting this for our industry – SFPMA

 

Wondering what 2023 holds for the community association management industry?

We were, too. That’s why Buildium asked 240 community association managers and board members about the challenges and opportunities they foresee for the industry this year.

They told us the community association sector is more popular than ever among developers, residents, and management companies—but there are several key challenges that community association managers and leaders need to address head-on, so they continue to thrive.

From shortages of team members, vendors, and volunteers to increasing competition among management firms, here are the six trends community association management companies should be aware of in 2023.

 

1. Staffing is a top priority as the labor shortage continues to strain teams’ resources.

Smaller community association management companies are competing with larger companies and developers for full-time team members and high-quality contractors, leading to higher staffing costs and smaller teams.

According to Buildium’s research, this is a leading challenge for the 85% of companies that plan to expand their portfolios throughout 2023 and 2024, prompting community association management companies to name staffing as their second-highest priority for the coming year.

 

2. Efficiency is a primary area of focus as teams search for ways to do more with less. 

Technology is the X factor that allows community association management teams to take on more clients, even as their teams remain smaller than in the past. Streamlining processes like payments, communications, and accounting frees up time for the most impactful areas of the business, such as customer service and business development.

More than half of community association management companies told Buildium that leveraging technology to drive efficiency is a key aspect of their revenue generation strategy for 2023.

 

3. Competition for clients highlights the importance of high-quality customer service.

The Foundation for Community Association Research estimates there are 8,000 to 9,000 community association management companies in the U.S. In certain areas, smaller companies feel they’re being edged out by larger firms that can charge less for their service due to economies of scale.

Association board members told us they can feel the difference between customer service that’s personalized to their needs, and service that’s one-size-fits-all. This is where smaller companies have a competitive edge.

 

4. New development means new potential clients for community association managers.

Seventy-eight percent of new homes for sale are located in community associations. There are 358,000 associations across the country, and it’s estimated that 5,000 more will be formed in 2023.

This creates new opportunities for 88% of community association management companies that plan to recruit new clients over the next two years, with growth named as companies’ third-highest priority for 2023, according to Buildium’s survey.

 

5. Profitability is a challenge as companies balance the pressure to increase prices with the need to stay competitive.

Inflation has increased the cost of running associations across the board, from materials and labor (on the management side) to insurance and taxes (on the association side). Association boards are feeling the strain of pulling together sufficient reserves and funding for capital projects without raising dues or requiring special assessments.

Association management companies are under pressure to keep prices low to stay competitive—but 70% of companies feel it’s necessary to raise prices to cover their costs in 2023 and 2024. Our research found 43% of companies plan to expand the services they provide, potentially opening new revenue streams.

 

6. Community associations are struggling to recruit engaged, knowledgeable board members.

According to Buildium’s research, 38% of association board members said finding the people and resources necessary to keep their community running as a primary source of stress in 2023.

Current board members—80% of whom are 60 and older—feel frustrated with the lack of participation from newer homeowners; and boards that experience frequent turnover struggle to find members who have the knowledge to make important decisions for the community.

Overall, association boards and management companies feel more involvement in the community from homeowners is needed, in addition to greater awareness of their responsibilities as residents of an association.

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These are some of the challenges and opportunities that association managers and leaders will face in 2023. For a deeper dive into 2023 community association management trends, download our 13-page report, which shares additional data and quotes from real community association management professionals and board members. Download your free copy now.

SFPMA.com is here to help you make the right decision for your properties.

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Simplify Your Accounts Receivable with These Proven Tips! by Condo Control

Simplify Your Accounts Receivable with These Proven Tips! by Condo Control

  • Posted: Aug 09, 2023
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We help condominiums and HOAs establish better processes so that they can operate more efficiently and effectively.

Simplify Your Accounts Receivable with These Proven Tips!

Struggling with managing accounts receivable in your condo or HOA? We’ve got you covered! Discover effective strategies to streamline your financial processes and ensure timely payments.
We’ve seen it for ourselves. We harnessed the best of technology to create software that streamlines and automates almost every aspect of community operations.
…………………………………………

There would be no Condo Control without Brian Bosscher. Brian had no professional property management experience, but he did understand the frustrations that plague condo communities after purchasing a unit in 2006. Looking to help improve operations, Brian joined his building’s finance committee immediately. He started volunteering on the Board of Directors as Treasurer the following year, and then became the Board President.

It was through volunteering that he learned about the challenges and roadblocks that property managers encounter on a day-to-day basis, and witnessed the inefficiencies that prevented them from reaching their goals. It was this experience that inspired Brian to build a long-term solution, and Condo Control was born.

How to simplify accounts receivable for your condo/HOA

When residents pay their fees or fines, these payments are documented under accounts receivable (AR). Vendor credits are also logged under AR. This element of accounting tracks the money coming into the corporation or association.

But like most things related to community finances, it’s much easier to talk about accounts receivable than manage them. Collecting payments is always a challenge because they come in at different times, and in different formats. Documenting this information is equally tedious and time consuming.

While we can’t eliminate this responsibility for you, we can suggest some ways to simplify the AR workflow for you and your team.

Table of contents

Regulate billing practices

Without structure, rules, or established expectations, anything goes. But spontaneity isn’t exactly ideal when you’re trying to get money from 200 owners. That’s why it is so important to implement consistent billing practices. Not only does this create a routine for you and/or your staff, but residents aren’t left wondering when they might receive their invoices or how they should make payments.

By creating a sustainable AR workflow, condos and HOAs will find that late payments become less common. By sending billing statements in the same format, at the same time each month, your residents become familiar with a routine. As a result, they’ll become more accustomed to making payments the same way at the same time.

Use electronic billing and online payments

Online banking has become almost ubiquitous in North America. Mobile apps make this option accessible to all age demographics, and the convenience cannot be overstated. So doesn’t it make good sense to offer online payment options to residents?

Not only does it make the payment process far easier for the people who live in the community, but it creates less work for you.

Teams that are still documenting accounts receivable payments manually are more prone to making mistakes. Between writing down payments, updating balances, and creating receipts, it’s understandable why someone might forget to fill in a field or add an extra “0.”

But even a small mistake can lead to bigger problems, and can even create conflict between residents and staff. Furthermore, time is wasted when someone has to go back and review the numbers.

Then there’s the issue of storing and locating physical records. Paper can easily be misplaced or lost, and aside from the obvious problems associated with losing documents, missing information can lead to costly compliance violations.

Electronic billing and online payments reduce manual data entry work for staff, and create records automatically. If you decide to use a cloud-based system, you’ll have the ability to access records from any computer. That way, you aren’t tied to the office.

It’s important to note that not every resident will want to make online payments. Your condo or HOA could install a secure lockbox so that you don’t have to arrange a meeting with these individuals to receive a payment on time.

Set up automations

With a digital AR system, you can also create automations to bypass some of the most tedious AR tasks. This typically includes email automation (late payment reminders, confirmation of payment) as well as sending out invoices.

Remove “information silos”

A cloud-based AR system ensures that anyone who needs access to accounts receivable information can get it, no matter where they are working from. Conversely, when team members have to wait for information because it is siloed off, it slows down the entire process.

Follow the process when collecting late payments

Inevitably, there will be residents who are consistently late with payments, or who avoid them altogether. Instead of having to figure out what to do next each time this happens, follow the condo or HOA’s rules/ procedures laid out in the governing documents.

Make sure all actions are in accordance with local laws. For example, you are probably required to give residents written notices and a reasonable amount of time to pay fees before more severe actions are taken.

Corporations/associations do have the power to pursue residents for unpaid fees, and to recover any legal expenses incurred while trying to collect money owed from delinquent owners.

These are some of the actions that communities are permitted to take while trying to secure outstanding fees:

  • Send the resident a notice of arrears
  • Apply interest to outstanding arrears after a certain amount of time has passed
  • Revoke the owner’s right to vote
  • Revoke a resident’s access to shared facilities
  • Contact collections
  • Contact legal counsel
  • File a Notice of Lien
  • Register lien

Conclusion

Accounts receivable is an ongoing responsibility that requires a great deal of time and resources. The less you and your team have to do by hand, the happier you’ll be.

It is recommended that condos and HOAs look into AR software to simplify and speed up workflows. The money you invest in this solution will be less than the costs associated with conducting this process manually. Not only can it help keep processes more consistent, but you will probably find that you make fewer errors.

Your time is valuable; spend it wisely.

 

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Let’s illuminate our planet with the power of energy efficiency, one lightbulb at a time. Together, we can make a meaningful difference.

Let’s illuminate our planet with the power of energy efficiency, one lightbulb at a time. Together, we can make a meaningful difference.

  • Posted: Aug 01, 2023
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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”

Join us in making a simple yet impactful change for a brighter, greener future: switching to energy-efficient lightbulbs!

By embracing this small but significant action, we can collectively contribute to reducing our carbon footprint and preserving the environment. Energy-efficient lightbulbs, such as LED or CFL bulbs, consume significantly less electricity than traditional incandescent bulbs, translating into lower energy bills and savings in the long run. Not only will you be helping to combat climate change, but you’ll also enjoy longer-lasting bulbs that require less frequent replacement.

Let’s illuminate our planet with the power of energy efficiency, one lightbulb at a time. Together, we can make a meaningful difference.

Contact Us

1076 NW 53rd St, Fort Lauderdale, FL 33309

954.626.0267

info@lightingot.com

 

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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MAKE SURE YOUR DOCS DON’T COST YOU MONEY By Eric Glazer, Esq.

MAKE SURE YOUR DOCS DON’T COST YOU MONEY By Eric Glazer, Esq.

MAKE SURE YOUR DOCS DON’T COST YOU MONEY

By Eric Glazer, Esq.

Let’s start with what some of you already know……..foreclosures are on the rise.  Incredibly, this is happening before huge special assessments are kicking in for many of you and before mandatory reserves go into effect.  If foreclosures are already on the rise, what’s going to happen when special assessments and reserves take hold of most communities?

If a bank forecloses on either a home in an HOA or on a unit in a condominium, the association is likely to take a huge financial hit if that home or unit is also delinquent to the association.  When a bank forecloses on a property, most of the time that bank winds up becoming the owner of that property because nobody bids against the bank at a foreclosure sale.  For example, if an owner fails to pay the mortgage, the bank eventually forecloses and gets a final judgment against the owner for the amount of the delinquency plus interest and attorney’s fees.  The judge sets an auction date.  At the auction, the bank usually bids the amount of their final judgment, there are no other bids and the bank winds up owning the property.

Now that the bank owns the property, do they have to pay all of the assessments that are owed to the association on that home or condominium unit?  Not even close.  The law states that the bank would only have to pay the lesser of:

  • One year of assessments or;
  • One percent of the original mortgage debt;

So, let’s say the bank is foreclosing on a $300,000.00 mortgage.  One percent of that mortgage is $3,000.00.  Let’s say the assessments are $600.00 per month.  One year of assessments is $7,200.00.  Therefore, at most the bank is responsible for $3,000.00 and not $7,200.00 and this is even if the prior owner has not paid for several years.  There can be $15,000.00 in delinquent assessments owed on the unit —the bank would still only have to pay $3,000.00 at most.

Here’s where the association can really get stung.  If the governing documents let the bank off the hook and state that the bank does not have to pay anything if they wind up foreclosing and owning the property.  Even though the law would require the bank to pay $3,000.00 in the above example, the association’s governing documents may allow the bank to pay zero!  SO……………MAKE SURE YOUR GOVERNING DOCUMENTS DO NOT CONTAIN SUCH A PROVISION AND IF THEY DO – AMEND IT IMMEDIATELY BEFORE FORECLOSURES IN YOUR COMMUNITY POSSIBLY BECOME ROUTINE!  DON’T LET THE BANKS OFF THE HOOK!

Next week we’ll talk about what happens when a third party buys the property at a foreclosure sale and not the bank.  You definitely will want to find out the good and the potential for disaster.

 

You can read more articles from Eric Glazer on his Blog. 

 

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Structural Workshop is pleased to announce their recent expansion into the South Florida market.

Structural Workshop is pleased to announce their recent expansion into the South Florida market.

Pompano Beach, Florida – Structural Workshop is pleased to announce their recent expansion into the South Florida market.  The new office is located in Pompano Beach, Florida and will be Structural Workshop’s third office.

 The Mountain Lakes, New Jersey based firm will bring their extensive experience in conducting building inspections and reports, specifically for commercial, multifamily residential and parking structures to the South Florida market – specifically in Miami-Dade, Broward, Palm Beach, Pinellas and Collier Counties.

Structural Workshop plans to help building owners and property managers with all facets of structural engineering and assist with the 40 Year Recertification Inspections, which are now a mandatory, state-wide ordinance.

“There is a lot of opportunity in the condo world and beyond for engineering services in Florida,” says President Joe DiPompeo, PE, F.SEI, F.ASCE.  “There is an immediate need to help condo associations and commercial buildings keep up with compliance and maintain a safe place for their tenants. We also have some multifamily ground up projects in Florida that we can better serve from a Florida office.”

About Structural Workshop

Structural Workshop is a Structural Engineering and Building Consulting firm founded in 2004. We provide a full range of Structural Engineering and Building Consulting Services for all types and sizes of projects from a single-family home to mid-rise buildings and everything in between. For more information, please visit:  www.structuralworkshop.com or contact us at info@structuralworkshop.com

Florida Office

2301 NW 33rd Court, Unit #102
Pompano Beach, FL 33069
(754) 277.4245

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ANOTHER NEW LAW:  HB 437 — FLAGS, TURFS AND BOATS

ANOTHER NEW LAW:  HB 437 — FLAGS, TURFS AND BOATS

ANOTHER NEW LAW:  HB 437

By Eric Glazer, Esq.

I can’t tell you how may fights I have been involved in regarding flags other than the U.S. flag flying above someone’s home and the fact that someone put down fake grass or stored a boat, that nobody can see, in their backyard.  Well, here’s a new statute that solves both of those problems:

Florida Statute 718.113

If any covenant, restriction, bylaw, rule, or requirement of an association prohibits a homeowner from displaying flags permitted under this paragraph, the homeowner may still display one portable, removable United States flag or official flag of the State of Florida in a respectful manner up to two of the following, and one portable, removable flags official flag, in a respectful manner, not 48 larger than 4 1/2 feet by 6 feet:, which represents

  1. The United States flag.
  2. The official flag of the State of Florida.
  3. A flag that represents the United States Army, Navy,  Air Force, Marine Corps, Space Force, or Coast Guard., or
  4. A POW-MIA flag.
  5. A first responder flag. A first responder flag may incorporate the design of any other flag permitted under this paragraph to form a combined flag. For purposes of this subsection, the term “first responder flag” means a flag that recognizes and honors the service of any of the following: a. Law enforcement officers as defined in s. 943.10(1).
  6. Firefighters as defined in s. 112.191(1).
  7. Paramedics or emergency medical technicians as those terms are defined in s. 112.1911(1).
  8. Correctional officers as defined in s. 943.10(2).
  9. 911 public safety telecommunicators as defined in s. 401.465(1).
  10. Advanced practice registered nurses, licensed practical nurses, or registered nurses as those terms are defined in s. 464.003.
  11. Persons participating in a statewide urban search and rescue program developed by the Division of Emergency Management under s. 252.35.
  12. Federal law enforcement officers as defined in 18 U.S.C. s. 115(c)(1), regardless of any covenants, restrictions, bylaws, rules, or requirements of the association.

In addition, in an HOA, the homeowner may erect a 20 foot flagpole on any portion of their property and fly the U.S. flag and any of the flags mentioned above.

Florida Statute 720.3045 now states:

Regardless of any covenants, restrictions, bylaws, rules, or requirements of an association, and unless prohibited by general law or local ordinance, an association may not restrict parcel  owners or their tenants from installing, displaying, or storing any items on a parcel which are not visible from the parcel’s frontage or an adjacent parcel, including, but not limited to, artificial turf, boats, flags, and recreational vehicles.

I’m getting ready for lots of fights regarding visibility of boats as boat owners will look to save the costs of monthly storage.

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Part of your job as a SFPMA member is to aid us with information about your company.

Part of your job as a SFPMA member is to aid us with information about your company.

  • Posted: Apr 26, 2023
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Managers & Board Members, learn how your company can help them!

“By working together we solve problems in the Property Management Industry”

Our effective marketing helps companies set goals and grow throughout the industry. We Aid Property Management Firms, Condo Boards and HOA Communities with finding the right Property Managers and solutions for finding the right Business and Services needed for proper operations of their properties, helping them achieve their goals.

Each month many of our members are contacted to solve problems that arise. ex; At  Tax Time, Budgets, and Elections, Legal Services and thousands of Maintenance Companies. We put clients in touch with members to help with Bookkeeping, Collections, Legal Advice and Service Companies. We help Clients make the right decisions with hiring one of the association’s members.

You can search our members directory to find the companies you need!

When a request for maintenance of their buildings arises these management professionals search our Florida Directory, finding top professionals ready to meet their needs. When Property Managers hire a company listed on our directory, they trust us to find companies that work with management professionals and they hold proper licensing, insurances in the State of Florida.

Members send us company articles, Sales and Company News.  As a member you can find the submission forms on the Members Portal – Log In and find the forms to keep us informed. or send to membership@sfpma.com  Our Teams will republish these and send them out to our industry via direct emailing. Social Media, our Publications, Getting you infront of the decision makers. 

 

  • We bring many industry professionals to our website, they view the articles search the Florida directory finding members to help them. This can only happen when you send what you are doing to SFPMA.
  • Write Articles we will repost these on our blog and send these to our social media pages.
  • When you have Events, Classes, Seminars or Webinars we want to know? These are added to our upcoming events list where our industry finds top events each month.
  • Advertise: in our Magazine or on our Website Pages, members can have banners linked to their websites placed for all clients and visitors see and interact with through the link.

By keeping clients informed of what your company is doing you are on their mind.  They will learn more about you, helping them make an informed decision when hiring!

 
Write Articles, Share your Membership Page, Send us information, Many companies are already leveraging these recommendations in ways that are effectively driving sales.  Are you?

How we keep members information on the minds of industry professionals.

We use information sent to us by our members and redistribute this using our in house marketing programs, each day this is sent directly to clients using Emails, Published on our Website and Social Media pages and Groups. We want you to be seen by clients all over Florida.

 

How do you use marketing for your business?

First you have to think about who your audience is along with what you are posting to this targeted audience? – Then think about your effectiveness and reaching clients with your own company marketing efforts.  Then ask yourself are those goals being met? – When we share about your company, We target the people that are making the decisions. We inform them about the most important issues they face with building management.

With your membership you can get your company information published and sent, informing the industry professionals. Let SFPMA spread this through our network of Board Members, Property Managers and Industry Professionals.

 

The Use of Digital Advertising from our Publications, Website Banner Advertising, Industry Articles on our Blog and Direct Emails to clients all over Florida!

Our Marketing Dept is constantly posting what our members send to us, sending the information to the many Social Media Pages and Groups from FB, LI, Twitter and Others. But its the Direct Emails we send we feel make the biggest impact. Over the years we have obtained 235,000 Emails that are kept safe and secure.  Our Magazine “Florida Rising Magazine” has been published for over 9 years and sent throughout our industry this is packed with Articles, Advertising and a Directory, we thought how can we get others reading the magazine to find the top Member Companies – Put it in the Magazine! and finally Social Media, With so many people looking on their Phones Our Posting on this media keeps our members and the information they supply to us on the minds of new clients that are searching for help with their Condo and HOA Management and Operation.

 

The Members Portal:

Members can access the Members only portal when they are logged in to sfpma.  *At the top of the page you will see ( Member ( your name or Company Name) you can still post 0 listings…) < Simply CLICK YOUR NAME and access the members portal.

(SOMETIMES YOU MIGHT HAVE TO REFRESH YOUR PAGE IF ITS THE FIRST TIME YOU WILL SEE AT THE BOTTOM OF THE PAGE ACCEPT THE COOKIES)

 

On the members portal:

This is the area where you can find your account information. You can also find access to the many ways to interact with SFPMA.

A)  – Changing your password   B)  – View your Account    C)  – Renew your Membership   D)  – Write Articles and send them to SFPMA    E)  – Find your Favorites   F)  –  Submit a Sale or Product Form    G) – Send us an Event

 

This post was added when a few members stated they have not had a call for work?

Answer to this is:  We have many ways we promote what our members are doing. We use Direct Emails these are sent 3 to 4 times each week to over 235,000 Emails. Social Media these posts are copied and promoted on groups and pages managed by sfpma, along with many posts are reshared by the many people that are reading them on FB, LI, Twitter and others.

When a member does not take time to send us what their company is doing it reflects on them. They are running their company and very busy but it takes a lot more to promote what they do? yet many companies dont do that, Promotions! sfpma is always open for articles, promotions, new sales we can use to send to our industry. when we dont get anything our team uses past articles and looks at your social media and uses some of those to repost these to our clients.

If you need a person to help you with promotions, and or marketing – One of the top Marketers helping members is:

Vail Marketing Solutions

(908) 528.4087

Providing everything from a full branding overhaul and business development program to a specific marketing project or campaign.

Vail Marketing Solutions is a woman-owned, multi-service consulting firm providing marketing, communications and business development solutions for any business looking to increase their visibility and bottom line. Our approach delivers a cost-effective, customized marketing plan to fit the needs of your business and reach your goals. We will work hand in hand with you to develop your brand, tell your story and help you stand out from your competition ultimately leading to more growth opportunities.

For over 14 years, Ms. Jessica Vail has been successful in providing marketing, communications and business development solutions within the construction, engineering and real estate industries. Her passion for marketing and helping others led her to create Vail Marketing Solutions. She is a published writer and an active member of many networking organizations and committees.

What is holding you back?

You don’t have time to spend on a marketing plan and execution. You have limited resources, staff and money. You don’t know where to start. If these scenarios sound familiar, let’s talk.

Call Jessica, tell her Frankie Sent you! she has helped many companies get infront of the decision makers. She works with clients and sfpma members, for Ads on our website and our magazines.

 

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As a community association manager, you are responsible for overseeing and managing the operations of an association

As a community association manager, you are responsible for overseeing and managing the operations of an association

WHY WE CAN’T REVIEW LEGAL DOCUMENTS

By Rafael Aquino  ( see below the article )

As a community association manager, you are responsible for overseeing and managing the operations of an association. Board members rely heavily on their expertise and knowledge to ensure the smooth functioning of the association. However, there are times when board members may ask a CAM to assist them in tasks outside their job responsibilities.

One such task is reviewing legal documents for the association. While it may seem like a simple task, it is not something that community association managers are permitted to do. This is because reviewing legal documents requires legal expertise and knowledge, which only a licensed attorney can provide.

Certain ethical and legal obligations bind community association managers. We are not licensed to provide legal advice or services, and doing so could put our license and reputation at risk. It is essential to understand that giving legal advice or services without a license is illegal and could lead to severe consequences.

If a board member asks you to review legal documents, you must inform them that you are not permitted to do so. Instead, it would be best if you recommended that they consult with a licensed attorney specializing in community association law. This will protect your license and reputation and ensure that the association receives the best possible legal advice.

It is also important to note that if a community association manager recommends a particular provider for legal services, it is for a reason. When recommending a provider, they do so based on their knowledge and experience in the industry.

To put it in perspective, it would be like asking a dentist to perform brain surgery. While both are in the medical field, they require vastly different skill sets and knowledge. Just like a dentist would recommend a neurosurgeon for brain surgery, a community association manager would recommend a licensed attorney for legal services.

In conclusion, as community association managers, we must understand and uphold our ethical and legal obligations. Reviewing legal documents is not within the scope of our job responsibilities, and it is important to recommend a licensed attorney for such tasks. By doing so, we are protecting our license and reputation and ensuring that the association receives the best possible legal advice.

For more information about Rafael P. Aquino and Affinity Management Services

please visit www.ManagedByAffinity.com or call 1-800-977-6279

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