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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.

  • Posted: Jul 18, 2023
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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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If you’re looking for accurate, timely, and comprehensive accounting and financial services for your property, Seacrest Services is the place for you!

If you’re looking for accurate, timely, and comprehensive accounting and financial services for your property, Seacrest Services is the place for you!

  • Posted: Jul 18, 2023
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If you’re looking for accurate, timely, and comprehensive accounting and financial services for your property,

Seacrest Services is the place for you!

Residential Property Management

Having a residential property manager can make things much easier for both you and your tenants. As a landlord, or someone part of a homeowners’ association or property owners’ association, you’re typically accountable for a lot, but with Seacrest Services, you can take your mind off most of the day-to-day responsibilities.

What We Do

When you turn to Seacrest Services for residential property management, we can assure you that everything we have our hands on will be completed efficiently and professionally. Some of what we take care of for you includes:

  • Landscaping
  • Addressing the needs of your tenants
  • Maintenance and repair
  • 24/7 customer service
  • Our goal is to keep you and your tenants happy by making every process, issue, and task as convenient as possible.

The Benefits of Residential Property Management

Whether you have another job you need to focus on, or you live in a completely different location than the property, sometimes you just don’t have the time or resources to manage a property on your own. Putting trust in a residential property manager can save you from stressful situations. Here are some other great benefits:

  • Happier tenants, meaning minimal turnover
  • Well maintained property
  • No worry about the day-to-day issues
  • Consistency and organization for HOAs and POAs

What Makes Us Stand Out?

At Seacrest Services, we pride ourselves on our experience and skill in maintaining various types of properties. Each one is unique, and we treat it that way through complete hands-on care. We want all parties to be satisfied with our work, making everyone’s lives a little easier.

Searching for Residential Property Management Services?

If you’re looking for a residential property manager to relieve much of the workload associated with your property, Seacrest Services has professionals who can make it happen. Contact us today to get started.

 

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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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Communication is the key to everything and we make sure our clients and their tenants are up-to-date and informed on everything throughout the project duration

Communication is the key to everything and we make sure our clients and their tenants are up-to-date and informed on everything throughout the project duration

  • Posted: Jun 30, 2023
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Communication is the key to everything and we make sure our clients and their tenants are up-to-date and informed on everything throughout the project duration.

Emails and daily reports are sent to the client and representatives every day.

South Florida Commercial Roofing Contractor

PSI Roofing provides premium services and products by educating our clients and creating trust, respect and satisfaction while forming long-lasting relationships.

Emergency Roof Repair

PSI provides 24/7 emergency leak repair service with a 4 hour maximum emergency response time. We are qualified to make repairs to any type of roof and are approved to complete warranty repairs.

Roof Replacement

Are you looking for a commercial roofing contractor in Florida? PSI Roofing is a South Florida roofing contractor whose philosophy is to install the best roof possible in every situation.

Roof Maintenance

Regular maintenance on your commercial roof can save time and headache longterm. PSI Roofing’s maintenance program locks in your cost and provides a watertight leak free guarantee.

Asset Management

Our Roof Assets Management services include regular maintenance, custom replacement options, work history reports, annual budget summaries, warranty tracking and inspections.

Restorations

We specialize in restoring commercial properties damaged by wind, fire and other disasters. We offer all of the needed assistance to complete your building restoration and get back in business.

Waterproofing

Extend the life of your roof by having PSI install a waterproofing and coating system. These waterproofing solutions can also be installed on parking decks, masonry and exterior walls.

Contact us for your roofing Needs!

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