HOAleader.com - Tip of the Week - July 3, 2015
Published: Fri, 07/03/15
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HOAs and Bidding: Don’t Let the Process Backfire
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In this week’s tip, we expand on an interesting discussion that took place
during a recent HOAleader.com webinar about condominium and homeowner
associations and their use of requests for proposal (RFPs) when bidding out
the HOA manager’s contract.
During the webinar on how to choose and work with your HOA’s manager, the
expert panelists offered cautions when using RFPs, particularly when
seeking bids from management companies.
First, check whether your state’s law or governing documents require you to
use RFPs for all or any business relationships. “In Florida, an RFP process
is legally required for a lot of different vendor type relationships,
including construction,” said panelist 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.
“You’re required to actually bid under the law make sure you have those bids
to look at,” says Solomon. “Although some associations may choose to go down
a similar path in selecting management or legal services, I’d tell you at
least here in Florida, they’re exempt by law. The statute says the community
association manager is exempt from that procedure. And it’s not really the
customary practice. It’s such a personalized service, and you really need
to make sure you find the right fit for you. That requires the ability to
interview and dig deep with due diligence, where an RFP is much more along the
lines of a paper interview and qualifications.”
Using a burdensome RFP may even be detrimental to your overall goal. “You may
end up deterring very qualified mangers who don’t find the process to be
productive for them or don’t find it to be customary,” adds Solomon. “It
could actually deter qualified managers from participating, and you need
to be cautious about that as well.”
Brad van Rooyen, a partner at Home Encounter, a Tampa, Fla., company that
manages community associations, agrees. “We’ve had RFPs come across our
desk,” he said. “When I look at the 10- to 15-, sometimes even 20-page long RFP
and then I look at the community and see it’s only 40 units, it’s just too much
information that’s being asked. Management is a very personalized
service, and no two communities are alike. And even management companies
are so different in where their focus lies and what makes them different from
other firms. The RFP can become too detailed.”
Find out more about using RFPs, and get sample RFPs, in our new article:
http://www.hoaleader.com/members/1203.cfm
Best regards,
Matt Humphrey
President
P.S. I'd like to personally wish you and yours a very happy and
safe Independence Day.
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HOA Elections:
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In this report you'll discover tips from our editorial team and experts on
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Upcoming Event
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How to Run a Successful HOA Board Orientation
An Exclusive HOAleader.com Webinar
With Practical Tips for Condo and HOA Boards
Thursday, July 16, 2015
11:00 AM to 12:00 PM Pacific Time
Learn more or Register now:
http://www.hoaleader.com/snip/202.htm
Members save $30!
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Recent articles posted at HOAleader.com:
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HOAs and RFPs: How to Pair Them Wisely
At a recent HOAleader.com webinar, our panelists had an interesting
discussion about condominium and homeowner associations and their use of
requests for proposal (RFPs) when bidding out the HOA manager's contract.
Here's what they had to say, along with additional thoughts from our experts
on using RFPs for management and other HOA contracts.
Click here to read full article:
http://www.hoaleader.com/members/HOAs-RFPs-How-Pair-Them-Wisely.cfm
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Is the HOA in the Business of Selling Itself?
An HOAleader.com reader asks, "Several new board members are real estate
agents or owners with many lots they want to sell. The board has authorized
'advertising' monies not in our budget. The focus is quickly becoming sales
of lots. Our documents state our primary focus is 1) Maintaining common
areas and 2) Maintaining building and architectural requirements. Our
documents do not say anything about 'advertising.' Anyone else dealing
with this issue?"
Click here to read full article:
http://www.hoaleader.com/members/HOA-in-Business-Selling-Itself.cfm
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HOA Extermination 101: What to Know
A small six-unit condo association in urban Chicago has a rat problem in its
common yard. Gross! (Bright side: At least they're not in the building!)
They're calling an exterminator, and that has triggered them to begin
thinking about the broad issues that typically arise with such services.
When should the association hire an exterminator to enter owners' units to
spray? Can owners decline access? How can boards work around owners if they
have a right to and do decline? Here are answers.
Click here to read full article:
http://www.hoaleader.com/members/HOA-Extermination-101-What-Know.cfm
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New HOA Board Members? Here's How to Run a Successful Board Orientation
Want your condo or homeowner association board to operate effectively, no
matter how many members come and go over time? It's not a pipe dream. It's an
achievable reality if you create and implement a new-board orientation to
help just-elected or just-appointed members hit the ground running.
Join us for a July 16 webinar to hear from two experienced community
association lawyers everything you need to know to craft an effective and
timeless new-board orientation program.
Click here to read full article:
http://www.hoaleader.com/snip/202.htm
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