Many Association members have never had the opportunity to read the original contract made between the President of the Association and their current management company. Perhaps the person who originally signed the agreement is no longer President or never shared the information with additional or new Board members. IT IS IMPERATIVE THAT YOU READ THE CONTRACT AND RECOGNIZE THE “SMALL PRINT”!
While a small community of 36 units or less may be paying a fee of under $500 per month, by the end of the year, the reality is, you have paid upwards of $12,000 and more in many cases.
Contracts will include charges by the hour for attending meetings. There will be additional charges for paper, ink, mailings, faxes, e-mails, Newsletters, property walks, etc., on and on.
Many contracts will include a monthly charge for attorney fees. This can be as much as $200 per month. Obviously, this fee should be negotiated out of most contracts.
The CPS Agreement will only include mailing charges at amount charged to us. If attorney fees are warranted, we have special arrangements with two of the best local attorney’s who specialize in Condominium Law.
Due to the above, we have cut monthly assessments to owners by as much as 40%.
Our Board members truly enjoy becoming Super Hero’s within their community.
As members of the Community Association Institute, we are informed of the changes in Condominium Law which usually takes place in February or July yearly.
Our Principal has direct contact with the legislative party responsible for changes in the law and is constantly being requested for idea’s. Not every idea provided comes to fruition. You can be sure however, that your comments will always be considered.
Special meetings are always provided when a major change comes into effect.
Most associations have absolutely no knowledge of obtaining and/or keeping their VA and FHA mortgage approvals.
Until a few years ago, once a community was VA approved, usually upon construction, it remained VA approved.
Today, the Veteran’s Administration periodically cancels VA mortgage approval in order to update files. Management companies have charged as much as $20,000 to update these mortgage approval documents.
FHA/HUD renews every few years due to the amount of rentals and sales of units.
CPS will keep your community updated at a fraction of the cost that many management companies charge.
We know of only a few large communities where the Board has received approval of owners to invest reserves. Most Condominium Documents require two thirds of owners to approve investing. No management company that we are aware of will get involved in investments as their insurance does not cover this ability. However, a community of 200 units that we know of had a CPA on the Board and was able to almost double their Reserves in three years. We can’t all be that lucky!
However, once you are self managed, we will assist you in getting the majority of owners to agree to investing. Keep in mind that most small to medium communities will never have enough money for large repairs. In these cases a “Special Assessment” is authorized. Owners hate special assessments! Unsecured Condominium loans for repair can cost as much as 16% interest.
We suggest meeting with several well known certified investment companies where you will feel confident in their advice. While CD’s pay low interest, you are better off with your money in CD’s than a savings account. This is a basic alternative.
Of all of the services we provide, maintenance is of the most important. Proper maintenance will save you the most money!
We have a huge file of association ignorance when it comes to basic maintenance. Here are a few facts:
Link Harbor, Virginia Beach: Units were built with beautiful Cedar Shingles. Due to lack of maintenance, the community was hit with a $32,000 (each unit) assessment to replace with cement board and vinyl.
Cape Henry Towers, Virginia Beach: Lack of biyearly treatment of the Efface on the outside of the building cost owners $3,000,000 in a Special Assessment to repair.
Coastal Walk Place, Virginia Beach: Contracted with large Power Washing company to service every 5 years at a cost for two buildings at $6,500. Spot cleaning once per year for both buildings would have cost under $1,000 and would have kept the community looking pristine and saved $1,500.00. Instead the uninformed board waited until the buildings were covered in mold and filthy before moving.
The majority of managers have no education when it comes to basic maintenance. They will go along with the opinion of the board members who also have no knowledge. It is imperative that you get proper advice and education on maintenance.
Touch up painting cost a fraction of over all paint. Addition of storm doors, protects expensive outer doors which average as much as $3,000 each to replace and install.
Inexpensive filler for cracks in pavement and parking lots can save upwards of $50,000 in repair.
Dryer vent cleaning every few years prevents fires and can save on some insurance policy’s.
Immediate replacement of bushes, trees and flowers that have died improves value of units.
The list goes on for pages.