How boards can avoid costly (and embarrassing!) mistakes

Obviously, we are all human and we all make mistakes. These mistakes come in all forms, from legal to management to human relations and can be minor or can cost Associations thousands of dollars. Since it’s best to avoid errors all together, we’ve compiled a list of the Top 10 Mistakes Boards Make.

1. Abuse of Power.

In some cases, owners join the Board for the wrong reasons, including pursuing their own agendas. They end up bullying some neighbors and doing favors for others. It’s important for Board members to be able to stand up to a rogue member, and better still, learn a little more about why members wish to join the Board before electing them.

2. Unclear Roles.

Often times Board members try to take on the role of property managers. Eventually they try to cut out management all together, and this can lead to problems in communication between management and contractors/maintenance staff. Other roles Board members often try to assume are the “Nice Guy” that gives out special permission for things he has no authority over and the “Policeman” that takes it upon himself to personally enforce the Rules & Regulations. 

3. Ignoring the community rules and procedures.

Boards are governed by their declarations, rules and regulations, in-place procedures and even cities and states. Boards should pay close attention to these rules when making decisions, and should also keep them updated. Problems can arise when rules and procedures are decided verbally in Board meetings, but not translated into written documents. 

4. Not listening to owners.

It is the Board’s responsibility to make sure that they make decisions that work for the majority of the community, and not just the person with the loudest voice. 

5. Not looking toward the future.

Boards need to consider many factors when embarking on projects or doing general maintenance. While the cheapest solution could work in the short term, it may end up costing more in the long run. In these situations, advice from property managers in invaluable.

6. Violation of meeting laws.

Boards must typically conduct business and vote “in the open.”  Voting by email and having no minutes to back up decisions can open Boards up to legal problems.

7. Ignoring your experts.

Boards work with many experts including managers, attorneys, lawyers and accountants. Consequences of ignoring their advice can be disastrous and expensive.

8. Misuse of electronic communication.

While email may be a good way to communicate basic information, it’s not a substitution for real discussion/debate, and information posted on social media sites can also get Boards into trouble.

9. Not doing your research.

Reading the Board packets, checking the minutes and inspecting financial reports are all important duties of Board members, and should not be ignored.

10. Overdoing things.

Board meetings don’t need to last for hours, with each member and owners going off into their own personal issues that are more suited to submitting work orders with management. In some cases, a timer has been shown to be an effective tool to keep speakers with business for the Board sort and to the point!

The NEW American Dream

It used to be that everyone young person's dream was to get married and buy a "starter" home. They hoped to build equity in the home then, years later, sell if for a large profit. Then our country experienced the financial crisis of 2008, when the U.S. housing market suffered widespread losses. While we still have a desire to have our own space with the freedom to remodel it as we wish, the effects of the housing crisis may have prompted a more cautious approach by buyers who are more realistic about the level of equity they can build in their homes. Homeowners and prospective homeowners are now looking more closely at the costs and benefits of such a large transaction. While a home is still a good investment, many financial experts still caution against purchasing a home for the sole purpose of making lots of money.


 
For many Americans with active lifestyles, renting is a great way to free up time that would normally be spent maintaining a house and yard. Renting also provides the freedom of being able to pick up and move without the burden of having to sell a house.

Here are a few more benefits of renting:

• Flexibility. Renting allows you to explore an area before making the longer-term commitment to homeownership. From schools to shopping to neighbors, each neighborhood had benefits and drawbacks that may not be obvious during the relatively quick home buying process.
• Career uncertainty. If you think you might need to move in the near future, or are considering job changes that may require relocation, you might want to rent.
  
• Income uncertainty. If you expect a pay increase or decrease in the near future, that can change your borrowing ability as well as impact your ability to make mortgage payments.
  
• Poor credit. Creating a history of on-time rental payments can help you build the type of credit you'll need to qualify for a home loan.
  
• No maintenance expenses. When problems arise, you simple call the landlord.
  
• Utilities. In some instances, the landlord may pay for many utilities such as water, sewer, trash removal, maybe even heat and hot water.

Whether renting or buying is more cost effective depends on your market, where you choose to live and whether you like to do home improvement and maintenance projects yourself. Should you decide that renting is for you, give Premier Property Management Services a call at (877) 208-4570 and let us help you find the perfect apartment!