HOAleader.com - Tip of the Week - October 23, 2015
Published: Fri, 10/23/15
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Risky Business: Tennis Coach Uses HOA Facilities Possibly for Nonresidents
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In this week’s tip, we answer a reader’s question about whether a tennis coach can and should be training nonresidents on HOA courts.
Our reader is on the right track when questioning potential liability because this arrangement does expose the HOA to risk in a way it doesn’t need to be exposed.
“I do think there’s liability to the association,” says Jenny Key, the Austin, Texas—based vice president of RealManage, a San Rafael, Calif., association management firm that oversees properties in Arizona, California, Colorado, Florida, Louisiana, Nevada, and Texas. “I’d advise the board to get some kind of waiver and ask the tennis coach to show proof of insurance and to name the association as additional insured on that insurance policy.”
Keep in mind, this advice isn’t limited to a tennis instructor. “We had the same problem with a swimming coach at an association,” recounts David C. Swedelson, the principal at Swedelson & Gottlieb, a law firm that represents associations in the Los Angeles area. “There was one popular swim instructor for 40 students in this 1,000-home association. They were commandeering sessions of the pool, and we couldn’t tell if the students were homeowners or not.
“These people could be tennis coaches, swim coaches, workout trainers, or others,” notes Swedelson. “It’s a problem, and you just have to stay on top of it. We finally said to the homeowners, ‘If you want to use this instructor, you have to sign an indemnification agreement. We don’t want to be responsible.’”
Also check in with your insurance broker. “The professionals certainly need to provide proof they’re licensed and have insurance listing the association as additional insured, and that needs to be kept up to date on file,” says Bill Worrall, vice president of FirstService Residential in Hollywood, Fla., which manages 1,300 condominium and homeowner associations totaling 310,000 residential units. “The association also needs to do its due diligence. Talk to your insurance broker and find out what other requirements you need to meet. Ask: What should I require from this person or business? And then take a look at your governing documents and rules and regulations.”
Is the instructor an employee, a contractor, or a vendor? It’s not clear, but the question is important. Find out why, along with our experts’ additional concerns for handling this situation, in our new article:
http://www.hoaleader.com/members/1259.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Tennis Coach Offers Side Training on HOA Courts. Any Problem with That?
An HOAleader.com reader who's a member of a tennis club community association asks, "Our condo … CC&R does allow a tennis coach. But it doesn't allow running of a business. Our tennis pro is taking students from outside of our complex, and we don't want to be liable for any outsiders getting hurt while taking lessons. What are our obligations? Is the tennis coach our HOA employee, a vendor, or a contractor? When my old HOA included a neighborhood watch, we were told to take them off of our HOA for liability issues. It's too confusing."
Click here to read full article:
http://www.hoaleader.com/members/Tennis-Coach-Offers-Side-Training-on-HOA-Courts-Any-Problem-with-That.cfm
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Rogue HOA Board Members Hit with Sanction; Say What?
In this week's tip, we answer a reader's question about how to handle rogue board members who've tried to get paid for volunteer work, slipped in erroneous bills, harassed owners, towed cars without cause, and even tried to bill the HOA $150,000 for a project owners didn't want. Other board members have sanctioned the rogue members. What's that mean? Can you do it, too? Do you have other options?
Click here to read full article:
http://www.hoaleader.com/public/Rogue-HOA-Board-Members-Hit-with-Sanction-Say-What.cfm
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Board Member is Sanctioned. What Does That Mean?
An HOAleader.com reader writes, "We have a 520-unit condo. We have had a husband and wife on the board for over 10 years. They broke every rule and even some laws.... The husband keeps trying to get paid for his volunteer work and tried to slip in an erroneous bill to get paid. We don't know, without doing a forensic accounting, if they've done anything illegal or have conflicts of interest. All we know is that they harass the homeowners, have towed cars without any cause, and have even tried to bill us for over $150,000 on a project we didn't want.
Click here to read full article:
http://www.hoaleader.com/members/Board-Member-Sanctioned-What-Does-That-Mean.cfm
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How to Choose Your Registered Agent
An HOAleader.com reader asks, "I'm president of a 1,000+ home community in North Carolina. It has been proposed to change the registered agent from a North Carolina law firm to an officer in the management company for the community. Is this wise, legal, etc?"
Click here to read full article:
http://www.hoaleader.com/members/How-Choose-Your-Registered-Agent.cfm
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How to Protect Yourself and Your HOA from the Neighborhood Sociopath
Run into any owners or residents who show contempt for and consistently disregard your HOA's rules? One in 25 people is a sociopath, or a person who regularly exhibits asocial or antisocial behavior. Sociopaths look like your everyday neighbors, but they can be scary and intimidating--and they can turn your HOA into a battleground. Learn how to wisely and safely handle the most difficult owners and residents you'll ever face, led by two community association experts with decades of hands-on experience in advising associations. (Recorded October 17, 2015.)
Click here to read full article:
http://www.hoaleader.com/products/neighborhood-sociopath-b.cfm
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