HOAleader.com - Tip of the Week - June 24, 2022
Published: Fri, 06/24/22
=================================================================
HOAleader.com - Tip of the Week - June 24, 2022
=================================================================
In this week's tip, we take a fresh look at whether institutional investors could be a threat to your community.
The Wall Street Journal recently reported on how corporate owners are purchasing more and more condo and HOA units and renting them out, prompting communities to work to reach supermajority thresholds to pass rental limitations. A similar story appeared on 60 Minutes, but from a rental-increase angle.
What's interesting to us is that just last year, we asked some of our experts whether they were seeing a noticeable uptick in condo/HOA buying on the institutional investor front, and they hadn't yet run across it. Perhaps it's more prevalent in minority neighborhoods, as the Washington Post seems to be suggesting in this article?
While Isaiah Henry, CCAM®, CMCA®, AMS, CEO of Seabreeze Management based in Aliso Viejo, Calif., which manages about 500 associations throughout California, says he's seeing the trend across the country, he adds that he's not seeing it much in the communities he manages. "I've seen it absolutely throughout the United States and California," he says. "Definitely, corporate investors are entering the condo and HOA space.
"In California, the majority of our markets are pretty hot," he adds. "There are companies like Zillow and Open Door purchasing one-off homes, but otherwise, I'm not seeing it in the communities we work with. I also haven't had client boards say they've seen the headlines about this issue and would like to discuss changing their community's rental policies as a preventive measure."
Janet Oulousian Aronson, a partner at Marcus Errico Emmer & Brooks in Braintree, Mass., who is licensed in that state, in addition to Rhode Island and New Hampshire, has also seen small entries into communities here and there. But what she's seen hasn't fit the mold of today's reports of large corporations buying big. "We're not seeing this big flood that gives you worry," she says. "Maybe it's happening more in Boston and I haven't heard about it. I have seen smaller, local corporations doing it. Maybe they have two, four, or six units, and that helps them in terms of managing the units when they're all in the same community."
However, Scott D. Weiss, CCAL, a community association lawyer at Ortale Kelley in Nashville, Tenn., who represents more than 650 condos/HOA communities throughout the state, is sounding the alarm based on what he's seeing.
Find out why, and what you can do to make institutional investors less interested in your community, in our new article: https://www.hoaleader.com/members/4536.cfm
Best regards,
Matt Humphrey
President
=================================================================
Upcoming Event
Condo/HOA Recordkeeping: How to Avoid Getting Burned in the Age of Texting, Facebook, WhatsApp, and Other Social Media
An Exclusive HOAleader.com Member Webinar
With Practical Tips for Condo and HOA Boards
Thursday, July 28, 2022
2:00-3:30 p.m. Eastern
Learn more or register now »
https://www.hoaleader.com/products/hoa-recordkeeping-social-media-webinar-a.cfm
Members save $30!
=================================================================
Recent articles posted at HOAleader.com:
=================================================================
Someone Wrote an HOA Check for Cash, But Nobody's Fessing Up—Now What?
An HOAleader.com reader asks: "In reviewing our HOA's financials for the past year, I discovered that a check for $5,000 was written out to cash (not to a particular individual) and categorized under the account of bonuses by our property management firm..."
Click here for more:
https://www.hoaleader.com/members/Someone-Wrote-HOA-Check-for-Cash-But-Nobodys-Fessing-UpNow-What.cfm
=================================================================
Were These HOA Board Members' Terms Improperly Extended?
An HOAleader.com reader asks: "In 2020, with COVID, our property management and then current board canceled/postponed the annual membership meeting until the following year to 2021. They extended each board member's term limit an additional year. However, some board terms didn't expire until 2021. Was this valid to grant those who had terms expiring in 2021 another one-year term to extend until 2022??"...
Click here for more:
https://www.hoaleader.com/members/Were-These-HOA-Board-Members-Terms-Improperly-Extended.cfm
=================================================================
HOAleader Video: Forcing a Combative Owner to End Auto Sales in HOA Guest Parking
Imagine facing an owner who blows up and tries to bully you into backing down when all you're doing is trying to enforce the rules that very owner agreed to follow...
Click here for more:
https://www.hoaleader.com/members/HOAleader-Video-Forcing-Combative-Owner-End-Auto-Sales-in-HOA-Guest-Parking.cfm
=================================================================
How to Begin the Condo/HOA Amendment Process
Readers submitted great questions for HOAleader's recent Ask Us Anything webinar—so many we couldn't address all of them. Among those submitted was this question probably very common among our readers...
Click here for more:
https://www.hoaleader.com/members/How-Begin-Condo-HOA-Amendment-Process.cfm
=================================================================
The Pros and Cons of Unincorporated Condo/HOA Associations
At HOAleader.com's webinar on board fiduciary duties, the topic of unincorporated associations arose. Are those a thing? Is it even legal for community associations to be unincorporated? Is there a legal risk to board members if their association is unincorporated? Why would an HOA be set up this way, and should those that are unincorporated incorporate?...
Click here for more:
https://www.hoaleader.com/members/Pros-Cons-Unincorporated-Condo-HOA-Associations.cfm
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
https://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to others.
Copyright 2022, Plain-English Media, LLC
(866) 641-4548
https://www.hoaleader.com