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

Charging into the Future! Electric Vehicle Charging Stations in your Community

Charging into the Future! Electric Vehicle Charging Stations in your Community

  • Posted: Dec 28, 2022
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Charging into the Future! Electric Vehicle Charging Stations in your Community

Through innovation, electric vehicles are trending in popularity, and are becoming more commonplace in society. As more people are considering to buy electric vehicles, thought has to be also given on how to provide the means to charge them. While single family home owners install charging stations for their vehicle as part of their vehicle buying considerations, communities such as Condominium Associations that have common element parking facilities generally do not have existing car charging facilities for their residents. Associations may look to the future of their Community, and may consider the value and feasibility for installing charging stations. Having charging stations is a potential selling point for prospective residents, as some may currently use electric vehicles and would prefer residences with charging facilities. For current residents, it can also be seen as a perk, as it allows them the option to acquire an electric vehicle that they otherwise could not have practical usage of. In some situations, Associations also will need to address legislation on car charging stations that might affect the existing Association’s rules/bylaws in regards to these stations.

However, as many Communities were originally built without consideration to future charging stations, Associations will need to determine how robust their existing electrical infrastructure is to accept these new installations. The Falcon Group can help your Community with your charging station needs. We can provide an assessment of the existing site and existing electrical systems, and identify key points of the feasibility of installing new charging stations, such as:

Determination of existing electrical capacity
Quantity of charging stations based on available space and electrical capacity.
Potential locations the charging stations
Required real estate for new electrical infrastructure for the charging stations.
Recommendations of electrical system upgrades (including service upgrades) needed to meet your Community’s target.
Potential federal/state incentives for installing charging stations.

Falcon also offers full design, bidding and construction administration services for charging station installations that meets your Community’s needs.

Contact The Falcon Group today and one of our experts will focus on all of your building and association’s specific needs.

Reza Koosha-Mirsaidi

Senior Electrical Engineer

 

 

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Condo and HOA Lien Foreclosures…A National Shame by Mitch Drimmer / Axela Technologies

Condo and HOA Lien Foreclosures…A National Shame by Mitch Drimmer / Axela Technologies

  • Posted: Dec 18, 2022
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How many times have you read a story about an HOA foreclosing on some unfortunate family for a fraction of the value of the home? For example, the veteran who, upon returning from active duty, finds that his HOA has foreclosed and taken title to his house for a mere pittance? “Soldier in Iraq Loses Home Over $800 Debt” reads the story, and life goes on at the HOA.

Should the HOA have foreclosed on this person’s house? Why did they foreclose on this property? What could have been done to prevent this gross injustice from happening in the first place? Condo and HOA lien foreclosures should not be the first go-to solution when a unit becomes delinquent.

For too long, community associations have been a national disgrace, rather than a source of national pride. No HOA wants their name to be mentioned on the nightly news because we all know it is far more likely to be an exposé than a feel-good piece. But if we want the bad press to stop, we need to take a good, hard look in the mirror.

 

Communities Often Jump Straight to the Nuclear Option of Lien Foreclosure. Can They Do That?

When you buy a house or condo in a community association, most likely you’ve taken out a mortgage, and if you don’t pay your mortgage, the lender has the right to foreclose and force a public sale of the property. So too can condominiums and homeowner’s associations foreclose on your property for non-payment of maintenance fees.

In fact, per most state laws, your homeowner’s association or condominium association can potentially foreclose on your property even if you are current with your mortgage. Also, your mortgage will remain in first position and the HOA cannot sell the property with marketable title unless the first position lien has been satisfied.

All that is required is for the association to cause an attorney to file a lien, have the attorney send a notice of foreclosure, have your day in court, and before you know it you are being evicted from your home that may have equity in it because you were delinquent for a much smaller amount than what the property is worth. Not a good deal for you and certainly not a smart business move for the association.

It’s not to say that the community is in the wrong. The assessment fees are rightfully owed to the association, and they have the right to attempt to collect it. However, jumping to the nuclear option prior to attempting diplomacy (negotiating with the owner to satisfy the debt) never goes well for anyone.

 

Winrose vs Hale ‘Shocked the Conscience’ of the Court

In an appeals court decision in Supreme Court South Carolina, the association foreclosure was REVERSED and REMANDED. In the case of WINROSE HOA v. DEVERY HALE the court was shocked by this action and even stated so in their decision: “As a result, in determining whether the purchase price was grossly inadequate …. the bid shocks the conscience of the court.” The story is quite simple and may sound familiar to you as this happens every day and really should not.

The Hales were solid citizens who purchased their home twenty-one years ago for $104,250.00 and paid their mortgage and fees on time. The home is valued at $128,000.00 and the property has $60,000.00 of equity in it. After missing a $250.00 maintenance fee payment the HOA foreclosed on their $566.41 lien (to satisfy delinquent assessments and interest) and the winning bid on the house was $3,036.00. The Hales had been robbed, and the association had acted too rashly in moving to foreclose upon a house for such a pittance. The buyer was Regime Solutions, LLC who are investors that seek out and purchase properties at foreclosures.

Due to the Hales failure to file a responsive pleading to the foreclosure complaint, a huge mistake on their part, they were ultimately defaulted and were not served with any further court papers. In fact, they did not even receive a copy of the judgment of foreclosure. When they found out they were at risk of losing their property, they tried to make good to redeem their house and paid a bill to the master and in fact, the law firm representing the HOA sent the Hales a notice that the lien had been satisfied. The HOA, however, did not withdraw its suit.

Three months after, the HOA filed the affidavit of default and the master authorized a judicial sale of the property at public auction. The Hales were not notified of this order due to a rule in South Carolina, which essentially states the time to appeal doesn’t change, despite lack of notice (rule 77(d), SCRCP). Two weeks later without notice to the Hales, the property was sold and the new owner moved to evict them. This of course led to court complaints, a trial, and finally an appeal before the Supreme Court who reversed and remanded the foreclosure order saying that the sale at auction for $3,036.00 “shocked the conscience of the court,” which is quite strong language from the Supreme Court.

 

Investors Use Shady Business Practices To Take Advantage of Unsuspecting Homeowners through HOA foreclosures

It came to light that Regime’s business model was not to assume the senior mortgage to own the property but to give back the property to the original owners at a hefty fee. (Sadly, this is not an uncommon practice.)

The court decision went on to say: “While the HOA had the legal right to pursue collection of the debt owed, including foreclosure of the Property to satisfy that debt, this foreclosure action quickly morphed into a proxy to capitalize on a small debt. We are especially troubled by Regime’s participation in a foreclosure proceeding to accommodate its business model of leveraging a nominal debt to secure an exorbitant return from homeowners who fear the prospect of eviction.”

Most important the court stated: “Regime would not have had an opportunity to engage in its questionable business practices had the HOA and its attorney not chosen to pursue foreclosure in the first place. The Hales were minimally in arrears on their HOA dues, yet the HOA foreclosed on a $128,000 home in its eagerness to collect the outstanding $250—an overdue amount less than 0.2% of the fair market value of the home, notwithstanding the amount of the outstanding mortgage.”

Finally, the court opined: “A foreclosure proceeding is a last resort, not a business model to be swiftly invoked for the purpose of exploiting property owners. We do not countenance the improper use of foreclosure proceedings by the HOA, its attorney, or Regime.”

Justice ultimately prevailed in this case, and the Hales kept their house and were not evicted although there can be no doubt that they had suffered and worried throughout this entire process. Not every homeowner who goes through this process is so lucky to get away with only a terrible story to tell.

 

Communities Are Getting Bad Advice, and It’s Costing Them, in Real Dollars and in Reputation

What went wrong is an amazingly simple question to answer. The association was convinced that they should foreclose on a delinquent unit before they even tried to engage the owners to review the consequences of their situation. While it may be true that they received one notice, they were advised by an attorney that the matter had been resolved. This was a total failure of communication.

The association could have had more contact with the owners and advised them as to the course of action that was being taken against them. Nobody said anything to them – and in this industry, such a thing is not uncommon.

When a delinquent unit goes over to an attorney the object is to “enforce the security interest” and not to collect. The association’s board was not properly informed that less drastic action could be taken. Somehow the board was convinced not to recover money from the Hales but rather to take the property.

No collections activity is reported in the narrative that is presented in the case. It was a bad business decision because eventually, the association had to pay a lot of legal fees. This situation could have been resolved much more easily and cost-effectively.

 

A Lawyer Who is Just Enforcing Security Interests Is Not A Debt Collector

This matter did not have to be resolved by a “legal solution” but rather by a “collections solution.” As a matter of fact, in a case decided by the Supreme Court of The United States, DENNIS OBDUSKEY v. McCARTHY & HOLTHUS LLP the Court held, “A business engaged in no more than the enforcement of security interests is not a “debt collector” under the FDCPA, 1032*1032 except for the limited purpose of § 1692f(6). Pp. 1035-1040.” This means that the association did not even try to collect the past due debt and if they used an attorney, he/she is not even bound by the Fair Debt Collections Practices Act.

The Supreme Court in South Carolina in all its wisdom said loud and clear: “A foreclosure proceeding is a last resort”

 

Community Associations Have a Better Option to Collect Delinquent Fees

So how should a community association collect delinquent fees? In a way this question just about answers itself. The answer is that they use a collection agency that is specialized in collections for community associations. Community Associations need to COLLECT, not foreclose and evict owners from their homes. Associations need to have adequate cash flows and a minimum amount of legal cases.

Axela Technologies would be honored to be that company for your community association. We are a licensed collection agency and we only work on delinquencies from Condos and HOAs. We are different because our objective is not to foreclose on a house, which is the action of last resort.

What Axela does is engage the owner and work with them to pay their past due assessments. Axela will send demand letters, provide internet portals to delinquent owners, make outbound calls, report delinquencies to credit bureaus, receive inbound calls, work out payment plans, and notice mortgage holders that the borrower is delinquent on their maintenance fee payments as per the PUD Rider.

Now is the time for your community association management company and/or community association to put the right process into place when you are confronted with delinquencies. Foreclosing and evicting does not have to be the way. Click here to request your free, no-obligation collections analysis today.

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Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency?

Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency?

Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency?

by RMS ACCOUNTING

𝐕𝐞𝐫𝐲 𝐒𝐚𝐝 𝐒𝐭𝐨𝐫𝐲 – Very old client dies leaving his wife to deal not only with his death but also with financial matters that she is unfamiliar with and not equipped to deal with. She has no where a copy of the will is or what attorney handled the will preparation. She also does not know what investment accounts in his name have TOD designation and how to deal with them as well as the house that is titled in both their names. This lady needs help and has no children or close friends to help her deal with these issues. While we can help make her get information on all the accounts that her husband had which had taxable transactions we can’t represent and handle the notification of banks and investment accounts or location of the will. The best we could do is refer her to an estate attorney we trust.
If you are wondering why I am telling your this it’s because we see the same thing over and over where an elderly person does not remember what assets they have and or know how to deal with them. We remind clients all the time that they need to make a list of their investments, bank accounts, insurance and other important information including the names of advisors and attorney and see that this list is easy for their loved ones to find when the need arises and the time comes.
Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency just drop us an

Email at info@RMSAccounting.com with “Emergency Guide” in the subject line along with your name and mailing address and we will send you a printed copy of this important booklet, rather have a PDF copy just let us know at the same email address.

 

Learn more and contact us for all of your Accounting Needs: 

RMS Accounting

1-800-382-1040

RMS Accounting combines quality cost effective accounting and bookkeeping services with a team of tax accounting professionals to help clients make and save more money.

rms-accounting

RMS Accounting

Accounting and tax services are about more than just numbers on a page. Unlike other accounting firms, when you call us you will get a live human being not voicemail and unlike other accounting firms we will work with you on your business helping you to grow profits and cut taxes. Unlike other accounting firms we will tell you before we begin work exactly what it will cost for our help.

Our tax accounting professionals will be happy to assist you with; tax planning, tax preparation and tax representation.

Our tax accountants are EA’s (Enrolled to practice before the IRS). They know the tax laws and will make sure you don’t pay one penny more than you have to. Visit us for a free consultation with a tax accountant, who will review your tax situation, with you to determine the best course of action. The tax accountant will provide you with a free fee quotation.

 

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Federal Court Identifies Potential Collection Issue for Community Associations in Florida

Federal Court Identifies Potential Collection Issue for Community Associations in Florida

Federal Court Identifies Potential Collection Issue for Community Associations in Florida

Community association operations rely upon the timely and full payment of all assessments by all of the owners. One of the mechanisms that Florida law provides to put associations in a stronger position when an owner becomes delinquent is the “secured interest” of the association in the unpaid assessments by way of its ongoing lien against the unit or lot for the unpaid assessments. This secured interest puts the claim of the association at a higher priority than most other claims, other than a first mortgage or unpaid property taxes. However, a recent decision in the United States Bankruptcy Court for the Southern District of Florida, In re: Adam, Case No.: 22-10140-MAM, September 23, 2022, has cast a potential cloud on that secured interest.

In the In re Adam case, the Association previously obtained a judgment of foreclosure for over $76,000, which was considered as a secured interest by the Court. The Association was also claiming an additional $36,558 which came due after the judgment was entered. The owners were asking the Court to decide that the $36,000 was not secured and therefore uncollectible in the bankruptcy (or at least not fully collectible).

In deciding whether certain association claims were secured and collectible in the bankruptcy setting, the Court undertook an analysis of Florida law on the subject. The Court noted that both the Florida Condominium Act (Chapter 718 F.S.) and the Homeowner’s Association Act (Chapter 720 F.S.) currently contain express provisions that identify that the lien of the association is effective from the original recording of the declaration (with the added requirement in HOA’s that the declaration specifically expresses this lien right). However, the Court also points out that the Condominium Act was amended in 1992 to provide for this effective date. (The Homeowner’s Association Act was amended to provide for it in 2008.) Prior to these amendments, these Statutes provided for the effective date of the lien to be when it was recorded in the public records of the county. The analysis of the Court required it to consider whether the current version of the Statute applies to the situation or whether an earlier version of the Statute is the controlling authority. (This case involved a condominium so only the Condominium Act was considered in the decision.)

To make that determination, the Court applied the principles of the seminal case of Kaufman v. Shere, 347 So.2d 627 (Fla. 3d DCA 1977), which require declarations to contain the specific phrase “as amended from time to time” when identifying the Statute that governs the documents in order for the current version of the Statute to apply. This is because Statutes are not retroactive in their application unless the legislature expressly makes them so in the Statute itself. Both the U.S. and Florida Constitutions do not allow for the State to make a law that infringes upon the vested rights in an existing contract (which would be the declaration). As a result, the contract (declaration) would need to have the specific “as amended from time to time” language (often called “Kaufman” language) to automatically incorporate changes to the Statute that is not otherwise retroactive.

When the Court reviewed the governing documents, it noted that they were from 1987 and did not have the Kaufman language. As such, the Court held that the provisions of the declaration were the same as the Statute in 1987, which provided that the lien was effective only upon being recorded in the public records of the county. Since the Association did not file another lien for the amount being claimed subsequent to the foreclosure judgment, the Court concluded that this portion was not secured. In the bankruptcy setting, this meant that the Association would likely be unable to recover most, if not all of this claim from the Debtors, Mr. and Ms. Adam.

While this issue may be most relevant to associations when dealing with a case in bankruptcy, it is possible that it could also be raised in state court foreclosure cases under certain circumstances. It is also important to note that this Bankruptcy Court did not include a significant issue in the analysis regarding the Statute at issue, that being whether or not the statutory provision was “substantive” or “procedural”, as those terms apply to this situation, which could have led to a different result. (This portion of the legal analysis is quite technical and beyond the scope of this article.)

For communities whose declarations were recorded prior to the statutory changes described above, the first step in protecting the interests of the association is to review the documents to determine whether Kaufman language is already in them. If not, the board may wish to consider proposing an amendment to the owners to change the documents to include this language, if not for the entire declaration, then at least for the timing of the effectiveness of the lien of the association. Having qualified legal counsel review these issues in the documents is a strong business practice.

About Robert
Robert L. Kaye is Board Certified in Condominium and Planned Development Law. Mr. Kaye attended Michigan State University, graduating with a B.B.A. in General Business in 1976. In 1986, Mr. Kaye graduated from the Detroit College of Law, magna cum laude. Mr. Kaye initially practiced tax law for the firm of Raymond, Rupp, Weinberg, Stone & Zuckerman, P.C. in Troy, Michigan, before moving to South Florida in 1987, joining Becker & Poliakoff to concentrate in the area of community association representation. In 1991, Robert Kaye left that employ to start Kaye & Roger, P.A. He was the managing shareholder of the Firm from its inception, directing all legal operations and overseeing its growth to represent over 1,000 Communities in South Florida at the time of its name change to Robert Kaye & Associates, P.A. on January 1, 2003.
On January 1, 2009 Mr. Kaye joined with Michael Bender to form Kaye & Bender, now known as Kaye Bender Rembaum, after Jeffrey Rembaum joined in 2012. Mr. Kaye serves on the Florida Bar’s Grievance Committee, is a member of the Condominium Committee of the Real Property Section of The Florida Bar, and previously served on the Committee on the Unlicensed Practice of Law. He also lectures on Community Association law and is regularly published on the subject. Mr. Kaye hosts KBR’s appearances on the radio show, ‘Ask the Experts’, from 6pm to 7pm, the first Thursday of each month.
See his full bio HERE.

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Dorothy followed the yellow brick road after a weather related Storm carried her..to Oz

Dorothy followed the yellow brick road after a weather related Storm carried her..to Oz

  • Posted: Nov 21, 2022
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Dorothy followed the yellow brick road after a weather related Storm carried her..to Oz

In Florida during our Wicked storm season Condo’s and HOA’s need protections like those ruby slippers Dorothy wore while she went looking for a way home.

SFPMA and our Members are here to help!

STORM DAMAGE CLAIMS FOR YOUR CONDO AND HOA PROPERTIES!

Has your Home, Condo or HOA Sustained Property Damage?

SFPMA has a team of Legal Experts, adjusters, estimators and claim specialists for the benefit of the Condo and HOA’s who sustained damage from the storms and fire, water or mold.

With the know-how and experience to analyze, evaluate, and negotiate the best settlement for your Insurance Claim!

“Get the maximum settlement for your damage claim!”

 

From Roof Leaks, Windows Broken, Trees up rooted, and electric lines that snap, to the inside from pulling permits to repairing damage from broken pipes, Mold and Mitigation and restoration companies, construction repairs, to finding the right engineering company to inspect structural integrity with an understanding of leak detection and injection to prevent water intrusions. Just some of the member companies
lined up to help you during Florida’s Storm Season ready to repair your properties and completed.

SFPMA and  FloridaAdjusting.com

Is pleased to provide you with The Top Florida Adjusters, Roofing repair companies and Law Firms that fight on your behalf with the Insurance companies to get your claims paid fast.

When you dont know who to call or your insurance company will not pay the total cost of you estimated Damage when Water intrusions can destroy a building’s structural integrity, harbor mold, and become a serious hazard.

 

Use your Brain, Have some heart and with the knowledge each one of the members bring to settle your claim and fix the damage you will be way ahead of any other person who needs their home protected and repaired!

 

Find Legal firms, Public Adjusters, Roofing Companies, and general contractors that are full Members of sfpma, these professionals are ready to help get your properties ready and repaired after the storms all of these companies are working together with insurance companies and will repairs damage and fight for your rights.

 

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Marketing the property for rent now that you made your selection for a Manager.

Marketing the property for rent now that you made your selection for a Manager.

  • Posted: Nov 17, 2022
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Marketing the property for rent

Now that you have made your selection for the Property management Company, You and the Management Company have to get the property ready for the market and get it rented. some of these are setting rents, creating curb appeal, showings, screening, Lease agreements to name a few.

We can not forget! Any repairs that will be needed for safety to prospective Tenants. This is key, when you make the necessary repairs to properties you can rest assured that many of the small things a renter or Tenant may complain about have been taken care of so the properties are primed for a future of making consistent income. Its not to say that problems will not come up as the rental goes forward but taking care of them and staying on top of them is very important.

 

 

Market the property for rent

  • Prepare home for rent
    • Clean home and optimize interior appeal
    • Manicure landscaping to increase curb appeal
  • Create ads tailored to the property and advertising medium. Some of the mediums commonly used are:
    • Paid and free rental listing websites
    • Print publications
    • Signs
    • MLS
    • Fliers
  • Work with other realtors and leasing agents to find a tenant
  • Provide a 24-hour hot-line where prospective tenants can listen to detailed information about the property
  • Field calls from prospects for questions and viewings
  • Meet prospective tenants for showings throughout the week and weekend.
  • Provide prospective tenants with rental applications that are legally compliant with fair housing laws
  • Collection applications with application fee
  • Perform a background check to verify identity, income, credit history, rental history, etc.
  • Grade tenant according to pre-defined tenant criteria
  • Inform tenants who were turned down
  • Draw up leasing agreement
  • Confirm move in date with tenant
  • Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance
  • Ensure all agreements have been properly executed
  • Perform detailed move in inspection with tenant and have tenants sign a report verifying the condition of the property prior to move-in.
  • Collect first months rent and security deposit
  • Receiving rent
  • Hunting down late payments
  • Sending out pay or quit notices
  • Enforcing late fees
  • Filing relevant paperwork to initiate and complete an unlawful detainer action
  • Representing owner in court
  • Coordinating with law enforcement to remove tenant and tenants possessions from unit
  • Advise in the event of a legal dispute or litigation
  • Refer owner to a qualified attorney when necessary
  • Understand and abide by the latest local, state and federal legislation that apply to renting and maintaining rental properties.
  • Perform periodic inspections (Inside and outside) on a predefined schedule looking for repair needs, safety hazards, code violations, lease violations, etc.
  • Send owner periodic reports on the condition of the property
  • Provide accounting property management services
  • Make payments on behalf of owner (Mortgage, insurance, HOA dues, etc.)
  • Detailed documentation of expenses via invoices and receipts
  • Maintain all historical records (paid invoices, leases, inspection reports, warranties, etc.)
  • Provide annual reporting, structured for tax purposes as well as required tax documents including a 1099 form
  • Advise owner on relevant tax deductions related to their rental property
  • Provide easy to read monthly cash-flow statements which offer a detailed breakdown of income and itemized expenses
  • Provide and oversee an in-house maintenance crew
  • Establish a preventative maintenance policy to identify and deal with repair needs
  • Provide an network of licensed, bonded and fully insured contractors who have been vetted for good pricing and good work that is up to code.
  • Assign jobs to different parties (in-house employees, handyman and professional contractors) based on who will do the best job for the best price.
  • Maintain outdoor areas
    • Leaf and snow removal
    • Landscaping
    • Removing trash and debris
  • Maintain and monitor a 24 hour emergency repair hot-line
  • Larger renovation or rehab projects
    • Provide recommendations on how the project can maximize rental income.
    • Prepare preliminary cost estimates
    • Get multiple independent bids for the work
    • Act as general contractor overseeing the work
  • Inspect unit and fill out a report on the property’s condition when the client moves out
  • Provide tenant with a copy as well as estimated damages
  • Return the balance of the security deposit to the tenant
  • Forward any portion of the owner’s portion of the tenant deposit to the owner or hold in owner reserves for repairs.
  • Clean unit and perform and needed repairs or upgrades
  • Re-key the locks
  • Put the property back on the market for rent

 

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Next is, Asking the right questions when hiring a Management Company

Next is, Asking the right questions when hiring a Management Company

  • Posted: Nov 17, 2022
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Asking the right questions when hiring a Management Company

Addressing these questions with owners and board members helps them to understand what a manager does, and how important it is to take the time to find the right company that will care for the properties like they would.

Questions to ask so you can learn more about Property Management company services they will provide, benefits, services, how they collect fees, how repairs are addressed, Vacancies, Rent Collection and the Laws & Licensing.

 

Then find out how our members can do to help you with the management of your buildings?

Managing properties can quickly become overwhelming, even for experienced investors. There is always something going on that requires attention and it takes very little time for things to get out of hand.  Hiring a Property Manager can provide an opportunity to regain control and restore stability to both your properties and possibly life in general.

The importance of having income real estate to you and your family? We are here to help you with the selection process for hiring the right company for the management of your buildings. Your Property Manager will make critical decisions on your behalf making it extremely important that you do your homework during the hiring process, your decision to hire or not hire a management company should hinge on whether or not it is a good fit with your lifestyle and makes sense financially. Individual investors will have to assess the opportunity cost of both options based on their unique circumstances.

 

Benefits of hiring a Property Management Company

A competent manager can add significant value to your investment, which is why many seasoned real estate investors will tell you that a good management company is worth their weight in gold. Here are a few ways that a good property manager earns their keep

Getting Better Tenants

Think of tenant screening as the moat and draw bridge around your castle. It is certainly possible to get a bad tenant out of your home once they are in, but it’s a real hassle and you are so much better off never accepting them in the first place. a thorough screening process results in reliable tenants that:

  • Pay on time
  • Rent longer
  • Put less wear and tear on the unit
  • Generally cause less problems

An experienced management company has seen thousands of applications and knows how to quickly dig for the real facts about candidates and analyze that information for warning signs. By allowing a management company to handle the screening, you will also be shielding yourself from rental scams directed at owners, and discrimination lawsuits resulting from an inconsistent screening process. This kind of experience takes time, and insomuch as it means avoiding bad tenants, scams and lawsuits it is arguably one of the most significant benefits a property management company will provide.

Veteran landlords & managers know it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with the knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit. Each state and municipality have their own laws, these plus federal law cover a number of areas including but not limited to:

  • Tenant screening
  • Safety and property conditions of the property
  • Evictions
  • Inspections
  • Lease addendums
  • Terminating leases
  • Handling security deposits
  • Rent collection

 

Lower Vacancy & Better Tenants

A Manager will help you perform three critical tasks that affect how long it takes to fill your vacancies:

  • Improve and prepare the property for rent – A Property Manager will suggest and oversee cosmetic improvements that maximize revenue.
  • Determine the best rent rate – Too high and you are stuck waiting, to low and you’re losing money every month the tenant is in the unit. Determining the optimal price requires knowledge of the local market, data on recently sold comparables, and access to rental rate tools.

Effectively market your property – An experienced Property Management company has written hundreds of ads and understands what to say and where advertise in order to get a larger pool of candidates in a shorter period of time. Additionally because of their volume they can usually negotiate cheaper advertising rates both online and offline. Lastly, they are familiar with sales and know how to close when they field calls from prospects and take them on showings.

While its easy to see the effects of lost rent, there are other equally serious problems with a high tenant turnover rate. The turnover process involves a thorough cleaning, changing the locks, painting the walls and possibly new carpet or small repairs, not to mention all the effort associated with marketing, showing , screening and settling in a new tenant. This is a time-consuming and expensive process that can often be averted by keeping tenants happy and well cared for.

A good management company will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your properties. These kinds of programs require a consistent, systematic approach, which is where a good Property Management company will shine.

Rent Collection Process

The way you handle rent collection and late payments can be the difference between success and failure as a landlord. Collecting rent on time every month is the only way to maintain consistent cash-flow, and your tenants need to understand this is not negotiable. By hiring a property manager, you put a buffer between yourself and the tenant, and allow them to be the bad guy who has to listen to excuses, chase down rent, and when necessary, evict the person living in your property.

If you let them, your tenants will walk all over you. They have to be trained to follow every part of the lease or deal with the consequences. Property managers have an advantage because tenants realize that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms. Many Managers will tell you that it is considerably easier to manage other people’s units rather than their own for this reason.

Regarding evictions, there are strict laws concerning the eviction process, and doing it wrong, or trying to evict a “professional tenant” can be a major fiasco. A good property management firm knows the law and has a good process for obtaining the best possible outcome given the circumstances. Never having to handle another eviction can be a compelling reason to consider hiring a property management company.

State of Florida Property Management Association has a partnering member www.NationalEvictions.com they can help all landlords with the information needed to understand the Florida eviction process, all members, real estate professionals & building owners can get the required forms for a Florida eviction and help with hiring a lawyer to help with an eviction.

 

Maintenance and Repair Costs

Good maintenance and repairs keep tenants happy and preserve the value of your investment which make them a very important part of land-lording. By hiring a management firm you gain access to both their in-house maintenance staff, as well as their network of licensed, bonded and insured contractors who have already been vetted for good pricing and quality work. This can translate into significant savings compared to going through the yellow pages and hiring a handyman yourself.

*State of Florida Property Management Association has our own Member Directory these members directly aid our Management members giving them cost savings for any work needed in the buildings they manage. This savings means savings for the building owners.

Increased inspections means happier tenants, It aids in the value of your investment

Preventative maintenance is achieved through putting systems in place that catch and deal with maintenance and repair issues early on, before they grow into larger more costly problems. This requires a written maintenance check program, detailed maintenance documentation and regular maintenance visits. The management firm can also offer you suggestions and feedback on upgrades and modifications, both how they will affect the rent you can charge, as well as their impact on maintenance and insurance.

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Before you look to hire a Property Manager, you have to ask yourself these Questions

Before you look to hire a Property Manager, you have to ask yourself these Questions

  • Posted: Nov 17, 2022
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Before you look to hire a Property Manager, you have to ask yourself these Questions

How far do you live from your rental property and how frequently can you visit the property?

If you are close you may be able to make the regular visits required for maintenance, inspections, collections, etc., otherwise the further you live the higher your travel time and expenses will be. The larger the distance the more temptation there is to not keep a close eye on things, and that can be a recipe for disaster. You should plan making monthly scheduled visits and there is always the potential for a middle of the night emergency call that requires your immediate attention. In the long run, is this feasible for you?

How do you deal with the of day to day operations yourself?

This is a tough one. we all like to think of ourselves as level-headed and even-keeled, but at the end of the day it takes a special kind of person to deal with the ups and downs of property management. Behind the seemingly simple task of collecting rent every month lie a number of unpredictable problems can push people to their limits. Ask yourself how you would react in the unfortunate event that tenants:

  • Get in fights with other tenants or neighbors
  • Have domestic disputes
  • Conduct illegal business in the dwelling
  • Carry on all night parties and revelry
  • Try to sneak extra people or animals into the home
  • Decide to sue you
  • Trash the property
  • Incite the wrath of the HOA because of repeated deed restriction violations
  • Refuse to pay rent because they are a “professional tenant” and know how to work the legal system for the maximum amount of free housing at the owners expense?

 

How many rental properties or units do you have?

As your portfolio grows so do the management challenges, and it becomes easier for things to fall through the cracks. Investors with large portfolios stand to reap significant benefit by leveraging the efficiencies a property manager can provide. Size can also constrain investors’ ability to consider purchasing new properties if they’re already maxed out managing their current holdings.

 

Do you do all the maintenance and repairs yourself?

If you can’t do it yourself, do you know who to call? Finding reliable handymen and contractors can take a while and in the mean time you may unknowingly hire people that are unethical, uninsured, do poor quality work, over charge etc. maintenance and repairs are a significant component of land lording and if you question your ability to ensure the work is done well and in a timely manner, you might want to consider hiring a property management company.

How quickly are you able to get your unit ready to be rented?

Advertising, fielding calls, and showing the unit can take a considerable amount of time, but are critical tasks as vacancies will quickly eat into your profit margins. If you question whether you have the skills or the time to make this happen, or if you have historically had an unacceptably high vacancy rate, you may want to consider hiring a property management company.

 

Are you capable of handling the paperwork nightmare.?

From profit and loss statements to tax deductions, this area needs special attention and becomes an increasingly larger burden for larger portfolios. some owners (especially those with a back ground in finance) will do just fine, others may opt to hire an accountant to help with the book keeping. If you feel like this might be a weak point you might want to consider hiring a Community Association or Condo Management Company.

 

Are you willing to be on call 24/7/365?

Its important to answer this question honestly, because when an emergency happens at your property you can’t ignore it. Your special event, important meeting, vacation, or personal crisis doesn’t relieve you of your obligation to your tenant. These emergencies don’t happen all the time, but when they do you have to be willing to handle them immediately. can you handle being called at 2 in the morning to fix someone’s overflowing toilet?

 

Are you willing to confront tenants about late payments and if need be evict them from the property?

Many new owners dislike feeling like the bad guy and try to be understanding by making exceptions. The problem is that this only invites additional abuses and excuses by tenants. Late payments must be dealt with immediately, and while sometimes a friendly reminder is all that’s needed, other times, it can be a very confrontational process ending in eviction. Unlike running a charity, running a successful rental business means enforcing the rules even it means evicting a single mother who lost her job and won’t be able to pay rent anytime soon.

 

How well do you understand the laws governing Community Association Management

Ensuring the property is run in accordance with the law is critical in both preventing lawsuits and shielding yourself from liability if you are sued. Familiarity with contracts is also very important as your rental agreement is the only binding agreement between you and the tenant.

 

Many property owners can benefit from hiring a Manager. State of Florida Property Management Association and our Members located all over the State of Florida are vetted holding licensing, Insurances, the leaders in our Industry. You can find many of them listed on our Directory, If you want or need more help with the selection contact us! We are always ready to help.  SFPMA.com

 

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Collection of Fees for Property Managers. How are they determined?

Collection of Fees for Property Managers. How are they determined?

  • Posted: Nov 17, 2022
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Collection of Fees for Property Managers. How are they determined?

 

Rental income and fees are the lifeblood of the business. If the mechanisms are not put in place to bring in the right amount at the right time each month, the business will eventually wither and die. When properly performed, this is what allows top real estate investors to achieve a higher than average return on investment.Here’s a list of issues to review and questions to ask the Community Association Management firms you interview: How do they determine their fees & rates?

There is a science behind maximizing rents for a community association manager to achieve this requires them to have knowledge of the local market and perform solid research on the last 10-20+ most recently rented comparables. Rules of thumb like the 1% rule (charging 1% of the property’s value as the monthly rent) are handy for reference, but can not replace thorough research using current market data. Aside from affecting rental income, your rental rate can also impact the properties value. The goal should be to get the unit rented within a month.

 

How often do they raise fees & rents?

Rental rate surveys should be performed at least annually, and more frequently if there are vacancies or lease renewals. Contractual rent escalators allow the rents to be raised without the need to negotiate, offer an explanation or give notice. Tenants know they have already agreed to it so it doesn’t feel arbitrary, and tenants are actually grateful if the firm decides to not enforce the full rate hike.

 

How is rent collected?

It’s a plus if the management company offers direct debit for tenants. Processing fewer checks improves cash flow and saves time and money. This lets you know as soon as possible if funds aren’t there and eliminates excuses about checks lost in the mail.

 

How do they deal with bounced checks?

This is usually a warning sign of trouble ahead; after the first bounced check tenants should be prohibited from writing personal checks until at least 6 months of good payment history has been established. Additionally, there should be a provision in the rental agreement that says tenants agree to pay the maximum the law allows for all returned checks.

How do they deal with delinquent payments?

Find a Community Association Management company with a process that is firm but reasonable. Tenants & Owners will start paying later and later if the management company lets them, therefore it is imperative they enforce ALL aspects of the lease. Once they identify a tenant with a trend of delinquencies, they should keep a close eye making sure they either get back on track or deal with the consequences. Remember that a strict collections process is only balanced out by the community association manager quickly responding to owners & tenants’ needs with quality service.

 

What is their current rate of delinquency?

Find out if they run a tight ship or allow things to get out of hand. When is rent due? Is there a grace period, if so how long?  Due on the first day of the month (in hand not postmarked), late on the second day of the month is standard. A grace period that extends to either the 3rd or the 5th is also standard. Keeping it shorter prevents it from getting significantly delayed in the event of a holiday or long weekend.

 

How much is the late fee?

While late fees can generate revenue, their primary function is to get owners & tenants back on track to timely payments as quickly as possible. This community association management fee is typically between five and ten percent of rent, sometimes a small daily fee is added to this as an incentive to catch up ASAP. In theory, the late fees are supposed to reflect the penalty the owner would experience in the event of a late mortgage payment.

 

How do they handle evictions?

How quickly do they usually get repossession of the property when an eviction takes place?  Their process should be well documented, and although the best course of action will vary based on the circumstances, they should be able to explain to you the basic checklist they go through each time. You want to deal with a company that acts quickly, documents their actions, and understands your area’s unique laws for this process. Find a manager who excels at containing and eliminating the problem as quickly as possible. This is basically a small monthly fee that insures that the management company will pay for all attorney and court costs associated with evicting a tenant they placed. It’s not a widely offered service, but it’s a valuable service that speaks to the property management companies confidence in their screening process.

 

 

We have a partnership with  www.NationalEvictions.com A Web based Eviction Information Company helping Landlords, Building Owners, Property Managers, and Real Estate Professionals with the Process of an Eviction in their State. Offering Information on Landlord Tenant Laws, Eviction Process, Articles State Specific, Access to All Forms for Evictions along with Business Forms ( ie: Leases Letters to Tenants, Amendments, and many others) Filing Services for Property Managers and much more…

State of Florida Property Management Association Offers this to the Management Members.

 

The State of Florida Property Management Association has partnered with NationalEvictions.com – Many of our Managers are using them for protections and filing of Evictions in Florida. 

NationalEvictions sets their fees accordingly Managers send them a list of who has not paid rents in the month, Letters, Notices to Quit are prepared and served to Tenants and Renters every month. These Notices for Non Payment of Rents have a set time – Usually 3 days Notice, If the Tenant, Renter does not pay, The Property manager must make the decision to go forward with the Eviction.  As a company being serviced the fees are much lower than calling NationalEvictions for one Eviction.  EX: We change from 300 to 450. per Eviction – When a Management company is under contract we charge our fees at 275.00 We prepare and file the evictions for them ( Clerks fee for payments to file are not included in our fees, ( clerks filing fees plus our fees ) ). Serving the Tenant with Notices are also set lower if we are contracted each month to prepare and serve to the Tenant, rather than calling our office to serve one or two in any month. ( We can charge for each Tenant in any month 35.00 for preperation and service to Tenant) with Managers that usually have about 5-7 Tenants that do not pay, this on the 1st of each month comes to  about 250.00 and we follow up and keep track of each tenant’s Time as per the Notices given.

Its really not a lot of money for the services we provide! We get results, When Tenants see that you are ontop of your rents and management! THEY KNOW YOU MEAN BUSINESS.

Find out more about them on NationalEvictions.com

 

Breakdown of fees for a management company

While Community Association Management fees are important they must be viewed in light of what other firms are charging, the scope of services provided and the quality of those services. The company you hire will be stewarding one of your biggest assets and the last thing you want to do is make your decision based solely (or even primarily) on who charges the lowest fees.A lower price may reflect either an acknowledgment they don’t provide top tier service, or an attempt to gain business by undercutting the competition. The problem with the latter is that it leads to slim margins for the firm which lowers the ceiling on the quantity and quality of service they can provide and still remain profitable. If a firm is under-pricing their services across the board it is possible they may try to make up for it by overloading their managers with as many properties as they can (or can’t) handle.The truth is that price is one of the last things to consider. Not because it is the least important factor, but because you should only think about price, and actually hiring an MC after you have determined that they will provide quality services tailored to your needs. What good are low fees if the management company does a poor job?Other common mistakes are failure to identify all the potential fees for Community Association Management, as well as not making a true ‘apples-to-apples’ comparison of costs between property management companies. A lower management fee could easily be wiped out by a lot of expensive back-end charges and vice versa.Remember that all fees are negotiable, so before you make your final decision, you should try negotiating the best rate possible from the firm whom you think would do the best job.

 

Management fee
There is a significant difference between commercial vs residential property management fees but the average management fee ranges between 4-12% of monthly rent. For a single family home you might expect to pay 10% in rental property management fees. This fee will vary based on the number of properties you need managed, the number of units in each property, the location and condition of the property, and most importantly, what services are included for that fee. (Fees also vary market by market, Other pricing models include flat fees, or a hybrid that sets both a percentage and a flat fee and asks you to pay whichever is lesser/greater. Find out if fees are billed or deducted directly from owner accounts.

 

Vacancy fee
Many management companies don’t require this—if they do, pay close attention. Some management companies charge a monthly vacancy fee ($50) that is prorated when a tenant is landed. Other companies expect to collect the full monthly property management fee even though there is no rent coming in. Make sure that the language in the contract indicates management fees are to be paid out of “Collected rent” or “Rent collected” as opposed to “Scheduled rent” or “Rent due”. Ensuring this language is in place will also protect you from having to pay management fees in the event that a tenant stops paying rent.

 

Set-up fee
This fee is for the time invested in setting-up a new account. It ranges from 0$-300$. Find out if the fee is per unit or per property, and if it makes a difference if the unit is occupied or not.

 

Leasing fee
Leasing fees compensate the manager for the time, effort and cost associated with getting you a new tenant. While this fee is common, some owners are opposed to paying it, preferring that it be padded into the management fee so there is more incentive for the management company to find long term tenants.
In truth, a good management company views the management fee, NOT the leasing fee as the primary profit center. This is why leasing fees as a stand alone service (meaning without other property management services are typically much higher (75-100% of first months rent). A transparent fee structure is laid out in such a way that high tenant turnover hurts, rather than rewards the management company. The only time this is not the case is when the fee is excessive, or there are significant vacancy fees. In the event that you are fortunate enough to have a long term tenant, you will benefit by not having to pay a leasing commission that is padded into the monthly management fee.

 

Advertising fee
There are plenty of ways to generate leads using free resources like signs, craigslist, etc. but with vacancies time is money and prolonging the search process to save a few advertising dollars is a bad idea. This fee could be charged in addition to the leasing fee so it’s important to ask who pays and what the typical fees are. The better they are at marketing the less you will pay, if they have a good strategy and use tools should be around $100 and certainly not more than $200.

 

Lease renewals
Some community association managers charge this fee whenever they have to draw up the paperwork to renew a tenant’s lease. The fee typically ranges from 0-200$. The process doesn’t require a lot of work, so a big fee should be a red flag. You should ask if they require lease renewals or if they allow tenants to go month to month after the initial term is up.

 

Reserve fund fee
These funds are used to pay day-to-day operating expenses, making sure that services are performed promptly and bills are paid in a timely manner. A reserve of $200-$500 is normal for single family properties.

 

Maintenance fees
Will they contact you with an estimate before performing repairs over a pre-defined amount? Is this negotiable?

 

Their policy may be to notify you if an expense exceeds a higher figure like $500-$1,000, but you may want to ask if this can be set lower ($100-$200) starting out and increased over time as you become more comfortable with the property management companies judgment. Additionally, if this notification is waived during “emergencies”, ask that they define what qualifies as an emergency.

 

Do they have their own maintenance/repair crew?
Companies that don’t offer this may portray it as an ethical hazard since the company could overcharge, but so long as you confirm that the billing rate and process is reasonable, it should not be a problem. If managed properly, an in house crew is a benefit that can lead to cost savings and a more streamlined process.

Here are some questions to ask:
What services do they perform?
What is the billing rate? ($30-$40/hr is average.) Does it vary based on the work being done?
Is there a trip charge, or a minimum billing time?
Are they available 24/7/365? Is there an extra fee/higher billing rate if they are called on off hours, weekends, or holidays?

 

For larger remodeling/upgrade projects, do they act as the general contractor overseeing the work that is done? Is there a fee for this?
Do they get at least three independent bids for larger ($500+) projects?
Do they belong to a network to get better repair rates on the work they outsources
Do they charge a “mark-up” fee?

This fee is stacked on top of the final bill for the work performed. Not all firms have this fee; if they do it should come in around 10%.

 

Eviction fee
Fee for serving notices, dealing with attorneys, court appearances, evictions, etc. Hourly rates are typically $25-$50 while a flat fee for the whole eviction process usually comes in between $500-$600 (plus court costs). Find out if they typically use an attorney for evictions and what their billing rate is.

 

Unpaid invoice fee
This is a small service charge (typically 1.5%) that is added each month to all unpaid invoices that are past due.

 

Bill payment fee
Fee for making owner payments such as mortgage, insurance, home owners association dues, etc. Some management firms don’t charge a separate fee, while others don’t even provide this service.

 

Sales commission if property is sold
Some management firms require an exclusive arrangement to broker your properties. If this is their policy, find out the brokerage rate and make sure there is a limited term which will allow you to re-list with another firm if the property does not sell within a reasonable period of time. Also, if the firm requires it, how much would the sales commission be in the event that a tenant ends up wanting to purchase the property they are occupying? This is typically 1-3% but we have seen higher, always make sure to check the contract.

 

Other income
Find out if they will be keeping any portion of the following sources of income:

  • Late fees
  • Returned check fees
  • Pet deposits
  • Lease violation fees
  • Interest on security deposits (may not be applicable depending on state laws) and owner funds held by manager
  • Income from laundry and vending machines

Extra duties fee
Some contracts contain a list of extra services not included in the contract along with the billing rate in the event the owner requests any of them be performed. Check to see if this clause exists, what services are listed, and what the billing rate is.

 

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SOLitude Lake Management Acquires Clarke Aquatic Services

SOLitude Lake Management Acquires Clarke Aquatic Services

SOLitude Lake Management Acquires Clarke Aquatic Services

SOLitude is proud to announce the acquisition of Clarke Aquatic Services, Inc. (CAS), a business unit of The Clarke Group, headquartered in St. Charles, IL. The transaction closed effective November 1, 2022.

Uniting with Clarke

Clarke Aquatic Services provides aquatic management services to customers in Florida, Illinois, Indiana, Michigan, Minnesota, Wisconsin, and Virginia. Through this acquisition, SOLitude welcomes nearly 50 new aquatic service professionals to its organization and expands its operations to 59 total offices across 41 states.

“We are excited to unite Clarke Aquatic Services and SOLitude Lake Management, further strengthening our position as the premier lake and pond management company in the country,” Mychal Manolatos, Vice President of SOLitude Lake Management said. “Clarke Aquatic Services brings a long reputation of sound service and expertise in the industry.”

Merging to Become ONE

SOLitude and CAS find common ground in the mission to help communities and businesses achieve clean, safe and beautiful lakes, advance new industry technologies, and support healthy experiences around the water.

“Merging with SOLitude supports professional opportunities for CAS coworkers and enhances the service portfolio and technologies available to aquatics customers,” said J. Lyell Clarke, Chairman, President, and Chief Executive Officer of The Clarke Group. “With the sale of our Aquatics business unit, Clarke intensifies its focus on its core business of developing and delivering the most environmentally-responsible solutions for managing the public health impacts of mosquitoes around the world.”

Learn about our eco-friendly mission.

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