"I believed the day of the manager, as we knew them, was coming to an end. With access to data from all kinds of devices in all kinds of locations, it didn’t take any skill to look up maintenance or finance items or issues. The manager of the future was going to have to be a great communicator and people manager, not the generalist we had all come to know and love. I got pooh-poohed, but in looking at staffs recently, the newer hires are often women (better communicators and often less in wages) or people with a hospitality background, not the kind of people who have a first-hand knowledge of roofing or paving."
Joe West, President Community Associations Network
Joe West, President Community Associations Network
Evaluating the quality of a Community Association:
Questions worth asking
Questions by Bob Biederman, Comments by Linc Cummings and other recognized national experts.
Here are sample criteria that should be relevant to a business evaluation of a condo or hoa.
What do you think?
#1 Did the association operate within 5% of its projected budget every year over the past five?
Reasonable. Needs explanation if the answer is no.
Linc Cummings
Principal, Cummings & Leeds LLC
CAI Founder and former President
#2 Is the association managed by a professional agent with a PCAM or CCAM designation? Or, does the management company have a certification from either CAI or CACM?
Reasonable, but many (smaller) associations can’t find one and settle for CMCA instead; better to ask designation level of principal – CMCA, AMS, RCM, or PCAM
Linc Cummings
#3 Did the association change managing agents more than twice over the last seven years?
Great question. Then the question comes, is it because of the board or the manager? Linc Cummings
#4 Does the association carry a bank debt for previous capital improvements?
OK, but need to also know if they had any capital improvements.
Linc Cummings
#5 Is the Reserve Fund funded at 50% or more?
Rather ask what percentage (to provide more perspective)
Linc Cummings
#6 Are there any lawsuits pending in which the association is a party?
OK, but too simple. Better to ask, number, type, dollars involved
Linc Cummings
#7 What is the delinquency rate? (% of units & average days delinquent)
And dollar amount
Linc Cummings
#8 Does the association have more than 30 Rules & Regulation?
Quality of the R&Rs is more important than quantity.
Verbosity does not equal worth.
Linc Cummings
#9 Do board members have an average of 2 years or more serving on the board?
Good. Helps measure stability, yet does not address the other end, longevity. I favor term limits to bring new blood on and avoid perpetuating bad habits
Linc Cummings
#10 How many fines were assessed over the past 12 months? (excluding late fees)
Needs perspective, type of transgression and severity
Linc Cummings
#11 How many of those fines were forgiven?
Needs perspective, enforcement mentality and empathy (reasons)
Linc Cummings
#12 What is the percentage of rental units?
I prefer Owner Occupied (positive first)
Linc Cummings
Here are sample criteria that should be relevant to a business evaluation of a condo or hoa.
What do you think?
#1 Did the association operate within 5% of its projected budget every year over the past five?
Reasonable. Needs explanation if the answer is no.
Linc Cummings
Principal, Cummings & Leeds LLC
CAI Founder and former President
#2 Is the association managed by a professional agent with a PCAM or CCAM designation? Or, does the management company have a certification from either CAI or CACM?
Reasonable, but many (smaller) associations can’t find one and settle for CMCA instead; better to ask designation level of principal – CMCA, AMS, RCM, or PCAM
Linc Cummings
#3 Did the association change managing agents more than twice over the last seven years?
Great question. Then the question comes, is it because of the board or the manager? Linc Cummings
#4 Does the association carry a bank debt for previous capital improvements?
OK, but need to also know if they had any capital improvements.
Linc Cummings
#5 Is the Reserve Fund funded at 50% or more?
Rather ask what percentage (to provide more perspective)
Linc Cummings
#6 Are there any lawsuits pending in which the association is a party?
OK, but too simple. Better to ask, number, type, dollars involved
Linc Cummings
#7 What is the delinquency rate? (% of units & average days delinquent)
And dollar amount
Linc Cummings
#8 Does the association have more than 30 Rules & Regulation?
Quality of the R&Rs is more important than quantity.
Verbosity does not equal worth.
Linc Cummings
#9 Do board members have an average of 2 years or more serving on the board?
Good. Helps measure stability, yet does not address the other end, longevity. I favor term limits to bring new blood on and avoid perpetuating bad habits
Linc Cummings
#10 How many fines were assessed over the past 12 months? (excluding late fees)
Needs perspective, type of transgression and severity
Linc Cummings
#11 How many of those fines were forgiven?
Needs perspective, enforcement mentality and empathy (reasons)
Linc Cummings
#12 What is the percentage of rental units?
I prefer Owner Occupied (positive first)
Linc Cummings
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