MANAGING CONDOMINIUMS AND COMMUNITY ASSOCIATIONS
IN THE YEAR 2023 AND THE 21 CENTURY
In recent months (and years) we have experienced major changes in the world
we live that have affected many, if not all, aspects of our lives and
the conditions in which we live. Improved technology has changed the way
in which we now perform many of our daily work tasks. We have observed
major improvements to state freeways and streets that have made commuting
easier. Movies and TV with their enhanced dramatics and special effects
have become more entertaining.
COMMUNICATIONS
The most profound of these improvements, however, has been the evolutions
and proliferation made in communications. Computer technology with all
its advancements and refinements, in many respects, has been the main
source of the changes and transitions we have experienced and enjoyed.
Faster, improved, friendlier and less expensive computers have indeed
made a significant and permanent impact on our business and the business
community. The computer and the massive, advanced features of the internet’s
world wide web have forever changed the business world by providing massive
quantities of current and usable information readily and literally at
our fingertips . Indeed, the wise and progressive businessperson has long
ago grasped the value of these ingenious tools and integrated them into
their business activities.
The new technology is obviously more adaptable to certain businesses and
professions than to others. And, what is more, some business and persons
are more inclined to use this new technology than others. As for the Real
Estate Management industry, the applications and ramifications are extensive
and invaluable and have become common place. While certain aspects of
the management process by nature cannot or will not change, many of the
process, techniques and methodologies utilized by this industry in prior
times are gone or will soon be gone forever.
MANAGING CONDOMINIUMS IN TODAYS WORLD
In the year 2023 the Property Manager is expected to be all things to all
people. Property Managers expected to have a current, working knowledge
of finance, accounting, parliamentary procedure, construction, landscape,
real estate, state and city laws and codes and a variety of other qualities
and information and be prepared to provide the Homeowners or Board of
Directors with answers to their questions upon request. With few places
to turn for formal instruction, the property manager in most cases gained
his / her knowledge on the job.
Functioning in this environment is, for many Property Managers, a challenge.
Evolving from chaos are new and improved methods of managing homeowners’
associations and other common interest developments. The year 2021 in
the twenty first century has indeed been greeted with sophisticated property
management programs and techniques designed and implemented with one main
objective, to increase the value and enjoyment of property. The internet’s
incredible ability to provide massive quantities of information to Boards
of Directors, homeowners and property managers has made this objective
a present-day reality.
The following overview sets forth in detail the technicalities of managing
homeowners’ associations and common interest developments in the
year 2023 and in the 21 century.
I. STRUCTURING NEW MANAGEMENT FUNCTIONS
To ensure that all aspects of the association are professionally managed,
the various management functions are divided into four (4) categories.
- Professional Management
- Middle Management
- Maintenance Management
- Landscape Management
1. Professional Management
The function of Professional Management is to provide competent, credible
and effective management services at the highest level. These services
include administrative services, financial services and coordination of
all management functions and services at the highest levels.
A. Administrative Services
Administrative services include liaison between the Board of Directors
and the management company. The management company is expected to provide
direction and offer suggestions and recommendations to the board. Administrative
services include procurement of contracts and agreements for services
such as landscape , pools and maintenance as well as taxes and reserve study.
B. Financial Services
Financial services include billing and collection of association dues,
payment of association bills and preparation of monthly and annual financial
reports. Financial services also include collection of dues in arrears
and preparation of annual Budget preform.
C. Coordination of Management Functions
A function of the management company at the administrative level is also
designed to provide a buffer between the Board of Directors and the homeowners;
and to provide liaison between professional management and middle management.
2. Middle Management
Assigned to the homeowners’ association is an agent that represents
the management company and attends the meetings of the association. The
middle management representative is the contact person for the homeowners
and contractors. The middle management representative also receives calls
and requests for service from the homeowners.
Perhaps the weakest link in the property management chain of command is
with the property manager assigned to the respective association. The
relatively easy entry into the industry and high turnover of property
managers has contributed to a mediocre level of property managers. The
recent introduction of legislation by the state legislature will help
improve this problem, still there is a need to improve the qualifications
and skills of the middle management level administrators. Therefore, middle
management is intended to gathering information and passes it on to the
professional administrative level.
3. Building Maintenance Management
Property managers often have limited knowledgeable about the maintenance
of buildings and real property. Yet the value of property is greatly affected
by the condition and appearance of the property. Therefore, this function
should be performed by persons skilled and qualified to identify a buildings
maintenance problem and make appropriate recommendations to correct the
problem. Problems such as roof leaks, fence repairs and lighting require
specialized areas of expertise. When the maintenance problem is properly
diagnosed and appropriate repairs performed, the property will be correctly
maintained, and the costs of maintenance diminished. Well maintained properties
typically have a greater value than properties not well maintained. Moreover
, the CC& Rs mandate the Board of Directors to keep the property properly
maintained.
4. Landscape Management
Landscape Maintenance like building maintenance is a specialized field
that requires unique education, training and expertise. It is apparent
that the beauty of property is significantly affected by the beauty and
condition of the landscape. Landscape management requires a working knowledge
of plants, trees, shrubs, flowers, fertilizer, trimming, planting soil
conditions, soil erosion, lawns and irrigation, valves and timers. When
studying an association’s financial report, it is apparent that
landscape is one of the most expensive line items.
It is essential that a landscape specialist be available to identify landscape
problems and recommend the appropriate solution. It is certain that qualified
landscape management can save associations significant amounts of money .
II. EDUCATION, TRAINING AND LICENSING
Few will dispute the need for Property Managers to be educated, trained
and experienced; if yours is not - think about it.
THIS IS NOT AN INDUSTRY FOR AMATEURS.