Monday, December 21, 2009
Thursday, December 10, 2009
Small Association's MUST still enforce Documents
Many Associations, both Condo's and HOA's, are considered small because of the number of homes and residents within the community. A small community typially consists of 50 or less units/homes. These "small" communities typically survive "paycheck to paycheck", maintain small reserves, and do not have much funds available in their budget to enforce their rules and regulations. Although, sometimes larger communities greater than 100 units/homes are finding themselves in the same situation.
Board of Directors must be reminded that they have a fiduciary responsibility to enforce the rules and regulations and to raise sufficient funds to do so whether by special assessments or whatever other authority the Board may have. A Board who fails to properly enforce their communities Rules and Regulations can be held accountable for failure to enforce the Associations bylaws and/or declaration no matter the size of the community associaiton. It's important to remember that no matter the size of a community, every community has Documents that must be followed and enforced, in addition to the Florida Statutes.
Board of Directors must be reminded that they have a fiduciary responsibility to enforce the rules and regulations and to raise sufficient funds to do so whether by special assessments or whatever other authority the Board may have. A Board who fails to properly enforce their communities Rules and Regulations can be held accountable for failure to enforce the Associations bylaws and/or declaration no matter the size of the community associaiton. It's important to remember that no matter the size of a community, every community has Documents that must be followed and enforced, in addition to the Florida Statutes.
Wednesday, December 9, 2009
9 Habits of Highly Successful Boards
9 Habits of Highly Successful Boards
8) Reserve Studies - Be sure to have an updated Reserve Study completed and updated at least every two years, this is important for accurate Budgeting, reserve funding, and may also now be requested by mortgage lenders prior to approving a purchase. Contact us for more information.
9) Use Professionals - It's important that Boards use experienced professionals to their full advantage and refer to them frequently. These professionals include Management Companies, Attorneys, Accountants, Contractors, etc. An effective Board refers to it's professionals to be sure that the Board is doing things correctly and that the Board fully understands the effects of its decisions.
Much like the book "The 7 Habits of Highly Successful People" (a highly recommended read). We have created "The 9 Habits of Highly Successful Boards". By using these tools your Board will be much more successful, much more efficient, and your community will also experience great success. These 9 Habits were developed through our experience in working closely with Board of Directors, training and educating Board of Directors, and managing community associations. Our 9 Habits are a proven tool for Board Member success.
1) Invest Reserves - Invest them and monitor those investments regularly. Contact our Accounting Department for assistance and information.
2) Meetings - Hold frequent meetings, prepare a detailed agenda, and set Board Meeting goals and expectations. Contact your Manager for assistance.
3) Disclose Conflicts - The Board should always disclose any conflicts with vendors, contractors, etc. This will benefit all parties involved.
4) Enforce Rules & Regulations - Proper violation enforcement is important to maintain order and property values throughout the community; however, do make sure that all rules are being fairly and equally enforced. Contact your Manager for assistance.
5) Enforce Collections & Delinquencies - Proper aggressive and efficient delinquency enforcement is necessary to maintain a financially healthy community and to increase property values. A fair and equal collections policy should be established and our Accounting Department can assist you with this.
6) Adopt Policies and Procedures - The Board should adopt Policies and Procedures that include resident applications and screening, move in/out, violations, collections, architectural enforcement, and many others.
1) Invest Reserves - Invest them and monitor those investments regularly. Contact our Accounting Department for assistance and information.
2) Meetings - Hold frequent meetings, prepare a detailed agenda, and set Board Meeting goals and expectations. Contact your Manager for assistance.
3) Disclose Conflicts - The Board should always disclose any conflicts with vendors, contractors, etc. This will benefit all parties involved.
4) Enforce Rules & Regulations - Proper violation enforcement is important to maintain order and property values throughout the community; however, do make sure that all rules are being fairly and equally enforced. Contact your Manager for assistance.
5) Enforce Collections & Delinquencies - Proper aggressive and efficient delinquency enforcement is necessary to maintain a financially healthy community and to increase property values. A fair and equal collections policy should be established and our Accounting Department can assist you with this.
6) Adopt Policies and Procedures - The Board should adopt Policies and Procedures that include resident applications and screening, move in/out, violations, collections, architectural enforcement, and many others.
7) Keep Records - Maintain proper records such as financials, meeting minutes, notices, contracts, and so much more. We can help with this.
8) Reserve Studies - Be sure to have an updated Reserve Study completed and updated at least every two years, this is important for accurate Budgeting, reserve funding, and may also now be requested by mortgage lenders prior to approving a purchase. Contact us for more information.
9) Use Professionals - It's important that Boards use experienced professionals to their full advantage and refer to them frequently. These professionals include Management Companies, Attorneys, Accountants, Contractors, etc. An effective Board refers to it's professionals to be sure that the Board is doing things correctly and that the Board fully understands the effects of its decisions.
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