As a co-owner of my company, Trestle Street Partners, a lot of my time is spent hunting for new association's to manage. The most frustrating part of this process is meeting owners that have a property management company and aren't being serviced properly. I'll break down the basics of what being an association manager involves:
1) To manage the property ... Duh! But what does that involve? Hiring and firing of service vendors, such as: landscapers, parking lot sweepers, day porters, window cleaners, lighting electricians, etc. Making those vendors sign contracts that protect the association, collecting W-9's, and then monitoring the insurance expiration dates of vendors that service the property. Not only do you need to monitor the insurance, but you need the vendors to add the association and property manager as an additional insured. Simple enough, right? Only in a perfect world ...
2) To manage the corporation that exists behind the property. Most every association is a non-profit mutual benefit corporation, and like every other corporation needs to file tax returns, elect a board of directors, file statements of information, review financials and keep adequate bookkeeping. Otherwise, the corporation will become "inactive" in the eyes of the State, and/or the corporate veil that protects property owners will be rendered useless.
3) Keep in line with California State laws. The body of law that specifically governs California Association's is the Davis-Stirling Act. I'm always using this website for helpful information: www.davis-stirling.com. Click on the "statutes" tab for a list of all the laws that are pertinent to California Associations.
4) Sending out monthly or quarterly assessments for Association dues and following up on late payments. Late payments and collection of bad debt really separates average and great property managers. Your association should have something called a billing and collection policy, which are really the rules for of collection debt and issuing late charges. Example: assessments are sent out on the 20th of the month, due the 1st day of the following month, a late charge placed on the 15th, and a lien is enforced on the 45th day of non-payment. By practice I call each owner that hasn't sent payment on the 10th of the month to remind them that in 5 days they will be receiving a late charge if the payment isn't received. That's the reminder call. On the 15th a letter is sent and a late charge applied to the account. The 45th day a lien is placed and the account sent to collections. By this time the owner has received 3 calls (if not more) and two letters.
In short, an association's property manager is responsible for the property, responding to phone calls, managing the corporation, and the collection of debt/assessments. If you have a property manager that is failing to meet any of the basic requirement outlined above, you should really be considering a transition in management.
Feel free to check out our website at www.trestlesp.com for more information.
1) To manage the property ... Duh! But what does that involve? Hiring and firing of service vendors, such as: landscapers, parking lot sweepers, day porters, window cleaners, lighting electricians, etc. Making those vendors sign contracts that protect the association, collecting W-9's, and then monitoring the insurance expiration dates of vendors that service the property. Not only do you need to monitor the insurance, but you need the vendors to add the association and property manager as an additional insured. Simple enough, right? Only in a perfect world ...
2) To manage the corporation that exists behind the property. Most every association is a non-profit mutual benefit corporation, and like every other corporation needs to file tax returns, elect a board of directors, file statements of information, review financials and keep adequate bookkeeping. Otherwise, the corporation will become "inactive" in the eyes of the State, and/or the corporate veil that protects property owners will be rendered useless.
3) Keep in line with California State laws. The body of law that specifically governs California Association's is the Davis-Stirling Act. I'm always using this website for helpful information: www.davis-stirling.com. Click on the "statutes" tab for a list of all the laws that are pertinent to California Associations.
4) Sending out monthly or quarterly assessments for Association dues and following up on late payments. Late payments and collection of bad debt really separates average and great property managers. Your association should have something called a billing and collection policy, which are really the rules for of collection debt and issuing late charges. Example: assessments are sent out on the 20th of the month, due the 1st day of the following month, a late charge placed on the 15th, and a lien is enforced on the 45th day of non-payment. By practice I call each owner that hasn't sent payment on the 10th of the month to remind them that in 5 days they will be receiving a late charge if the payment isn't received. That's the reminder call. On the 15th a letter is sent and a late charge applied to the account. The 45th day a lien is placed and the account sent to collections. By this time the owner has received 3 calls (if not more) and two letters.
In short, an association's property manager is responsible for the property, responding to phone calls, managing the corporation, and the collection of debt/assessments. If you have a property manager that is failing to meet any of the basic requirement outlined above, you should really be considering a transition in management.
Feel free to check out our website at www.trestlesp.com for more information.
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