HOAleader.com - Tip of the Week - July 6, 2013
Published: Sat, 07/06/13
=================================================================
Three Signs Your Manager's More Loyal to Vendors than Your HOA
=================================================================
In this week's tip, we discuss three signs your management
company is getting the better end of the deal when it comes to
your HOA's vendor relationships.
1. They're squishy when you ask about relationships.
"Boards should always ask if there are any affiliated
relationships with vendors," says Ben Solomon, an attorney and
founder of the Association Law Group in Miami Beach, Fla., who for
more than a decade has advised more than 500 associations and also
represents developers through his second law firm, Solomon &
Furshman LLP. "A lot of the megacompanies we deal with have a lot
of vendor companies that do that intentionally to pick up the
loose change. So boards should ask, 'Is there any legal, formal
affiliation between the manager and the vendor or their parent
corporations? And even if there's not a formal affiliation, do you
have a relationship with this vendor?'" A noncommittal or dodgy
answer should be a huge red flag.
2. They resist getting additional bids.
"One of the biggest signs that a vendor and a management company
have very close relationship is when board gets pushback from the
management company when it's asked to get additional bids,"
explains Brad van Rooyen, a partner at Home Encounter, a Tampa,
Fla., company that manages 15 community associations totaling
about 3,000 owners. "That's quickest way to find out if there
are affiliated relationships."
3. You see bids from the same venders time and again.
"It might sound self-serving, but I don't like to see boards bid
out contracts for professional relationships--like a lawyer or
accountant--because I think you lose the value of a long-term
relationship," explains Elizabeth White, a shareholder and head
of the community associations practice at the law firm of
LeClairRyan in Williamsburg, Va. "But I do like to see bidding
for things like landscaping or pool maintenance. When board
members start seeing the same companies bidding over and over
again, you should ask, 'Why do we only have this small pool of
folks bidding each time?'
There may be a perfectly good reason you're seeing the same
vendors over and over. Learn that reason, and read all Six Red
Flags Your HOA Manager is Too Tight with Vendors, in our new
article: http://www.hoaleader.com/members/869.cfm
Best regards,
Matt Humphrey
President
=================================================================
Recent articles posted at HOAleader.com:
================================================================
Six Red Flags Your HOA Manager is Too Tight with Vendors
Is your homeowners association manager benefitting more from vendor
relationships than your HOA? Managers who are affiliated with or work
exceptionally closely with vendors can be great, or they can end up costing
your HOA extra money it should never had to have expend. Here we offer six
signs that your management company is getting the better end of the deal when
it comes to your HOA's vendor relationships.
Click here to read full article:
================================================================
Discussion Forum Follow-up: Is This HOA Board Legit? Can It Get the Bank to
Pay Up?
A reader asks, "This is complicated, but here's the story: We have a defined
condominium of 30 units; 2 were completed 4 partially completed, and the
rest unbuilt. One of the completed units was sold and was paying the condo
fees established by the developer. Then our developer went into
bankruptcy, and that was followed by the bank foreclosing on the
developer..." Here our experts explain whether this board's actions have
been valid and what, if anything, this HOA can do to get the bank to start
pulling its weight.
Click here to read full article:
================================================================
HOA Board Members Sued for Antitrust Violations: Will It Succeed?
In a South Carolina case, Brandriff v. Dataw Island Club Inc., association
board members were sued in federal court by owners for antitrust
violations, among other things. The case was eventually dismissed, but
it's been refiled in state court, where it's wending its way through the
system. Here, we break down the allegations and explain what's at stake.
Click here to read full article:
================================================================
How to Handle HOA Common Area Hogs
In this week's tip, we discuss the best tactics for reining in owners who seem
to have taken over your common areas.
Click here to read full article:
================================================================
HOA Common Areas Not So Common Anymore?
Is your homeowners association being invaded? HOA lawyers are getting
complaints from owners that their HOA is allowing all kinds of activities in
common areas that are interfering with their ability to enjoy those common
areas, from classes to meetings to swim team practice.
Click here to read full article:
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
http://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to
others.
Copyright 2013, Plain-English Media, LLC
(866) 641-4548
http://www.hoaleader.com