Tag Archives: Human capital

HOA Board…Wake Up!


The board of a homeowners association has several different tasks. To understand what these tasks should be, it is essential that the Board understands that the HOA “thing” is. It is often not what most think it is. Here are some of the myths.

PRLog (Press Release)Sep 01, 2011

The board of a homeowners association has several different tasks. To understand what these tasks should be, it is essential that the Board understands that the HOA “thing” is. And it is often not what most think it is. Here are some of the myths.

Monthly fees are kept low.

The board is elected to the HOA to maintain assets properly. There is a difference between being a good administrator and a tightwad. Stingy boards skip routine maintenance services and tend to erode the value of homes. It takes money to make things right and the board should spend the money necessary to accomplish tasks.

Volunteer Councils are not subject to the same standards as professional property managers.

Volunteers they are, yet are saddled with the task of conducting business for the Owners Association in an informed and businesslike manner the same way a community manager would. This means that they should be taking care of things in a timely manner, planning to anticipate problems, receiving and acting on good advice.

The HOA is small and so are the needs.

The lower the HOA poulation, planning is more-so important because the cost increases for the smaller owner’s association.

We are too small to professional management.

In areas such as financial management and enforcement, all homeowner associations should have the professionals out front. Collecting money from neighbors and control of their antisocial behavior is bound to cause problems for a volunteer. It’s even worse when you live next to the abuser. There are professionals who perform these tasks management 24 / 7 and get paid for it.

The board is chosen to be the director.

The board is elected to hire and supervise competent service providers. When properly organized, the work of the general meeting should only take a couple of hours a month.

The board is responsible for most valuable asset most people own. The responsibilities of a HOA board are not unlike those of any Fortune 500 board. In both cases, physical and human assets are maintained by the board. Careful planning and effective communication to shareholders (owners) is needed.

Is your board is asleep?  Does it understand the true scope of Board Member work?

So, heed this wake-up call, and call Riverside Property Management, TODAY! (678) 866-1436 or (404) 788-7353.
http://www.youtube.com/watch?v=UayzInP1tp4

 

Riverside Property Management, Inc. offers this information for educational purposes only and not as legal advice. The information provided in this article does not create a client relationship between you and Riverside Property Management, Inc., nor is this article a substitute for legal advice. The contents of this article are subject to change without notice. You should not rely or act upon the contents of this article without seeking advice from your own attorney. Riverside Property Management, Inc. is not a law firm.

What You Should Know About Homeowners Associations


Questions to ask the HOA before buying.

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Buying a condo or townhome is more than four walls and interior air space, it also means buying the homeowner association. Smart shoppers examine all the homeowner association documents, including its latest financial statements to determine whether one is buying a money pit or a gold mine. Here are the most important questions a buyer should ask:

How financially sound is the HOA?

To determine this, ask for and read (yes, they are long, at least 50 pages or more) copies of the following documents:

Covenants, Conditions and Restrictions (CC & Rs)
Statutes and Regulations
Minutes of the meetings for the last year
Homeowners Association Financial Statements

These documents will tell you:

If special contributions are expected to address deferred maintenance
Planned capital improvements
Amount of cash reserves
If the association is or has been sued
The history and the likelihood of increased fees

What services are covered by your monthly payments? Does it include the payment of:

Water
Cable television
Ground maintenance / gardeners
Garbage Collection
Sewage
Insurance
Management fees
Pool, spa or fitness centers
Streets and sidewalks
Assigned parking / metro (and if so, how many spaces?)
Gateway

How do you compare the rates of assessments from other condominiums in the area? I sold an apartment in an older complex, where the monthly fees are $120. Renovated apartments around the corner had a maintenance fee of $ 190. The main difference between the two complexes had been remodeled units, stainless steel appliances and granite counter-tops in the kitchen. That’s why buyers ask, “Is it worth $ 70 a month to own stainless steel appliances?” For some buyers, the answer is “yes.”

Who manages the complex?

Larger complexes require professional management. That could cost more than hiring a professional company, but in the long run tend to save money. Exercise bargaining power in negotiating professional management services such as offers for gardeners or general maintenance, as they represent a greater number of complexes.

How many units are rented?

Nobody likes tenants. Not that renters are bad people, but there is some truth that the tenants do not take care of the goods in the same way that an owner occupier would take care of it. In addition, some lenders will not lend money to a buyer if more than 25% of the units in the complex are rented. Some homeowner associations refuse to let the owners rent their unit for more than 30 to 60 days, if at all.

How quiet are the units?

Ask neighbors to give potential buyers an idea of ​​the noise factor. But driving in the area late on Saturday night will also let you know. It is best to purchase a unit in the corner because there is less common (side) walls means less noise. However, the soundproofing does not help much if your next door neighbor enjoys blasting Pink Floyd, every Sunday at 2 PM.

A customer who bought a condo on the ground floor near the stairs leading to the second floor was worried about the sound of footsteps on the stairs, so I suggested he talk to the occupant above. It turns out that the resident was the president of the Homeowners Association and a stickler for keeping things quiet.

What are the recreational areas, parking and Pet Restrictions?

Find out the hours of use for pools, spas and recreation areas such as tennis or  game room and check that the working time schedule.
How do you manage parking for guests, and the number of parking spaces are deeded to each unit? Is it possible to rent an additional parking space if needed?
How much will be charged to replace a lost key to the security gate or club?
How many pets can I have? Are there size restrictions? Are you allowed to bring pets through the lobby on a leash?

Finally, talk to the people who live there. Drive through the parking lot or garage in the evening when the owners are coming home from work. If they hate the homeowners association, they will undoubtedly tell you what is wrong with it.  Discover the reasons behind it before before you buy. HOAs have the power to regulate and sanction violations that affect owners financially as never before, so make sure you fully understand what you are getting into before signing on the bottom line.

How to remove a member of the HOA Board


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Every homeowners association is to maintain the welfare of their community by maintaining an acceptable  standard protocol in all relevant areas of importance to the community itself. This means putting the needs of the community as the first priority in the objectives of each and every member of the  Home Owners Board of Directors. However, in some cases, individual board members can not or will not properly handle the responsibility given to them. When this happens, the council as a whole should consider removing the board member in particular.

But before getting into the best ways to remove a board member, consult first with the statutes of the association. These vary from association to association, and state laws relating to association management should also be checked as there are limitations – for example – Florida laws do not apply in Georgia.

If one or more members of the board shows an irresponsible behavior,   legitimate removal is necessary for the good of the community. However, before starting a potentially very complicated and long process, the board as a whole must put everything in perspective.  Make sure that the removal is based solely on the basis of verified facts and documentation. If a resident plans to file a complaint, he or she – and the HOA went to officials to solve the problem – there is a need to investigate whether the board member is really the culprit.

If it is determined that the board member in effect, be removed, there is a specific process to be followed. Once all the evidence gathered, a formal request to resign must be made to a member of the Board. If the request to opt-out does not work, a more formal meeting between members of the Board is held to discuss the situation. If after this conversation has determined to be in the best interest of the community that this board member is removed, the board has to consult the manual for the board to plan the next steps.

The first step usually involves giving proper notice, either on a scheduled annual meeting – or if more urgent, in a special meeting. A special meeting may be called if the necessary signatures are obtained from members of the community. This ranges from 5 to 50 percent of the members of the community, according to the Covenants and Bylaws of the community themselves. Once enough signatures are acquired for the Board to approve the meeting, a quorum must be established (a minimum number of voters). All homeowners in the community and investors are invited to attend.

At the same meeting, the member of the Board subject to removal must be given an opportunity to defend themselves. Supporters, opponents and Board members should be given enough time to make their case. After the debate is over, the President should appoint independent inspectors to count the votes present. If the board member is removed, the next step is to hold another election to fill the position now vacant.

A board member may be unfair and should be eliminated for the good of the community. However, prevention is always the best tactic. At day’s end, HOA board members should be chosen based on the positive attitude and the good sense to avoid such situations arising in the first place.