Many Miami/Broward Condo Associations Struggling
Many Condo Association Management companies in Miami & Broward are struggling to keep their business. Some are even reaching beyond their already notorious reputations for bad customer service, so we hear. Are you looking around at your community and seeing weeds where they never grew before, pools with a green haze and when you call—you get some not-so-nice people at the other end of that phone—IF you ever get through to a live person? Are you continuously being hit with new special assessments?? And yet they continue to be quick to send you a violation notice for every little thing?? There’s little that may seem fair right now in owning a condo in a struggling community.
Many of these companies are shaking internally… they are having to downsize, are losing contracts, and some aren’t getting PAID like they’re supposed to be. And many condo buildings are choosing to self-manage... letting a Board member manage everything... in an effort to save money. Unfortunately, there are increased numbers of fraud cases being reported and quite a few arrests on record.
According to Florida State Representative Julio Robaina, as many as 40% of Florida’s condo associations are on the edge of disaster. Increasing numbers of owners aren’t paying their dues. Owners may be heading into foreclosure and stop paying, many simply can’t afford it. Management companies are left with little funds in many cases to make repairs, pool and lawn maintenance is taking a backseat altogether.
Special assessments are hitting the owners who ARE responsibly paying their dues each month, and creating heavier burdens. Both owners and prospective new buyers alike can’t get information on how many units aren’t paying their dues or special assessments. Most argue that information should be available to those who request it. Representative Robaina sponsored a bill (House Bill 1397) which will address a whole slew of association issues. Unfortunately, as of May 2nd, 2009 - the bill was "indefinitely postponed and withdrawn from consideration".
[Why? We're waiting for some answers. But some say lobbyists are just too powerful in Florida and will continue to prevail.]
WHAT CAN YOU DO??
If you are the owner of a condo, get involved with your condo assocation. Go to meetings, which are held monthly and should be posted or advertised to the public. Get involved with the Board and help make tough decisions. Look closely at your condo association's budget... watch what money is being spent on and speak up if you think there are ways to cut costs. *We recently heard of a condo complex in Dania Beach that hired one of the condo residents/owners to maintain the pool himself. It's saving the association thousands of dollars a month and residents say the pool has never been so clean! [We think this is a great idea. However, we do NOT think hiring a Board member to manage an association should even be considered!]
If you are the prospective buyer of a condo... get as much information as you can. Ask lots of questions about the status of special assessments, impending repairs work, percentage of occupancy. Ask for a copy of the association budget. The more information you have, the more you'll be able to assess if you're getting a good deal - or you'll soon be sorry. Due diligence and research is KEY to investing in condos in this market!
[HAVE A STORY YOU'D LIKE TO SHARE ABOUT YOUR CONDO ASSOCIATION? EMAIL US! WHEN YOU SHARE, YOU'LL HELP OTHERS LEARN!!]
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