I have often written about the need to have Realtors review the CC& Rs of a Condo project or a PUD with an HOA.
This post outlines a very good checklist of what to look at if the Association does not have a proffessional manager looking after the assets of the community.
I encourage you all to take note of what is required for responsible project management, and make sure that is is being done before you invest your clients dollars and your reputation.
Thanks to Todd Whitlock for writing this letter and for MS Sloop for sharing.
The Sentry Office in Indianapolis welcomes our new District Manger, Todd Whitlock. Todd has been with Sentry Management, Inc for 6+ years and comes to us from the Clermont, Florida office. Please join me in welcoming Todd to Indianapolis.
I am reprinting information from a letter that Todd Whitlock has written (with his permission) that provides some further explanation as to what a property management company does for homeowner associations.
Often I am asked, "What does a property management company do for my association?" and "Why do we need a property management company?"
Strangely enough, let me start by stating what Sentry Management, Inc does not do. Sentry does not "run the show." Your homeowners association is a corporation, a business entity. The Board of Directors as per its governing documents and state law manages the affairs of the business. The Board hires vendors and signs contract, approves the budget, approves collections and covenant enforcement systems, prioritizes projects and all the 'day to day' decisions needed regarding the operation of the association. What Sentry Management, Inc. doesdo is provide the Board with full service administrative and accounting support and guidance and advice based on our 30+ years of managing community associations.
Sentry's local Indianapolis office has a large support staff based out of our Longwood corporate office. We have an Accounts Receivable department that maintains bank accounts, posts payments and late charges, and prepares regular and late payment coupons. We have an Accounts Payable department that processes invoices, prepares and submits payment, and tracks vendor insurance. We have a General Ledger department that prepares the best and most comprehensive monthly financial report in the business. We have a Collections department that monitors and tracks all facets of the process. We have a Closings department that coordinates sales, prepares sales certificates as requested by the Title Company, and updates association ownership records. We have a Client Services department that prepares, collates and mails all association correspondence, including meeting notices, and tracks other 'miscellaneous" items including CPA engagement, tax preparation, and required state reports. Finally, Sentry provides a 24 hour emergency answering service and maintains all association records. All of these services are included in the monthly management fee. What is not included is normal business costs such as supplies, copies, long distance phone call charges, etc. . . that any business incurs as well as the administrative costs for closing and collection services.
All of the above is done "behind the scenes." Usually, the only person seen and thought of by the members is the property manager. Your property manager provides periodic inspections of the property, assists in enforcement of covenants and rules and regulations,monitors vendor compliance, assists in tracking insurance and other contracts, obtains informational packets for meetings, attends meetings and often prepares minutes, directs support services, and provides support to the Board. In general, the property manager performs any task the Board wishes as long as it is reasonable and/or legal.
If you have any further questions or would like to know more about the services Sentry Mangement, Inc. can provide for your homeowners association, please feel free to email email@example.com.