PROPERTY MANAGEMENT BLOG

Wednesday, May 1, 2019

Budgeting for Mother Nature
Even Associations who are fully funded seldom have the funds needed when Mother Nature sends a hurricane our way (or flood, or fire). Look at Hurricane Irma, who caused more than $50 billion in damage, and now ranks as the 5th costliest hurricane in history. Florida was lucky – Irma did not hit us as hard as originally predicted, bu...

Friday, March 1, 2019

Cash vs Accrual Accounting
Most associations and management companies keep the books on a cash basis. What does this actually mean, and what is the effect on the financial statements?The cash method of accounting is one where revenue is recognized when collected, and expenses are recorded when paid. So, when cash actually changes hands. While this may seem a l...

Friday, February 1, 2019

Financial Best Practice: Conduct a Reserve Study
A reserve study is an essential tool in long term planning for the Association. It gives the Board the information it needs to create a funding plan for the maintenance and repair of major capital components, such as replacing the roof, redoing the pool marcite, or repaving the roads. While most board members are aware of the bi...

Tuesday, January 1, 2019

Financial Best Practice: Important Banking Procedures
Community Association Managers wear many hats, often carrying all the day to day responsibilities of the association. Most board members, however, all agree that the most important aspect of the job is strong financial management. Since most CAMs aren’t actually trained in financial management, here are a few items that ar...

Saturday, December 22, 2018

Board Certifications
Did you know?When a new board member is elected to an Association board, they are required to actually know something! Yes, amazing. The State of Florida actually expects board members to know the laws relating to their type of association (condo, co-op, or HOA), what’s contained in their governing documents, and what thei...

Saturday, December 1, 2018

Financial Best Practice: Separation of Duties
Most people have heard the phrase “separation of duties”, but what does it really mean? How does it affect you, in your association?By definition, separation of duties is the practice of having more than one person to complete a task. In the accounting world, it is an internal control designed to reduce fraud and error ri...

Saturday, October 27, 2018

How Low Can We Go?
You can’t raise my fees – all my other bills are going up!It’s budget season again, and I’m constantly hearing comments from board members that they cannot raise the maintenance fees – people just can’t afford it! All their other bills are going up! Yup, and the Association’s bills are going ...

Saturday, September 1, 2018

Elements Of A Budget
So, budget season is approaching, and you’re new on the board. Are there any requirements around the budget? Yes, of course there are. Florida Statutes define what must be in the budget, and most people are aware of the listing of income and expenses that is in the usual budget. The Florida Administrative Code also defines how the c...

Wednesday, August 15, 2018

Anatomy Of A Budget
Wondering why your budget is going up this year? Was there a lot of drama at last year’s budget meeting? Here’s a simple primer on an Association budget.Reserves. Condominiums and Co-operatives are required to include in the budget funds for the repair or replacement of all capital items, loosely defined as items costing over ...

Wednesday, August 1, 2018

Budget Building Blocks
Are you new on the board, and faced with building the 2019 budget? Are you a unit owner, and just want to understand your fees?  Keep reading!So, what’s in a budget? Well, the Florida statutes tell us what has to be, as well as the Association’s governing documents.For condos, Ch 718 says:718.112(2)(f) Annual budget.&md...

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