If you’re living in a Florida homeowners association or condominium association, chances are you have just received the proposed budget for the subsequent fiscal year. If you are losing your mind over the 20-30% increases, you’re not alone. There are many reasons, but the most notable of late are the insurance premiums. With many insurance companies leaving Florida or applying for bankruptcy, premiums have skyrocketed for the remaining insurance companies.


Calls have been coming in asking us how to keep assessments low. There is very little we can do to combat the rise in prices, but there are techniques we recommend in structuring the assessments. Our firm can help you carefully plan assessments to keep your resale values high and homeowner complaints to a minimum.


It is always recommended that you speak with your CPA and attorney when planning assessments. Sometimes there are governing document rules that must be followed.

We have been working with our associations for decades to make the best decisions for your association. Contact us if you have any questions about navigating the rise of assessments and staying ahead of the curve.


Disclaimer time... We do our best to provide the most up-to-date and relevant information with our subject matter. It is our opinion, and we are not a government entity nor an authoritative source for professional research. Always hire a professional when you want the most accurate information as it relates to your company/association specifically.


If you have a topic that you'd like to see addressed, please email us and we will add it to our topic list. Click here for our contact information.


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  • Matthew G. Baratz

This is more of a public service announcement. Please review your financials monthly!


Most errors can be researched and corrected quicker and easier in the period that it occurs. We have been finding very often that bookkeepers post unreconciled items to the Retained Earnings or an Exchange account. This is only a good practice if it gets reconciled prior to closing the monthly books. Once the books are closed and time passes, it is increasingly harder to research.


There is also the mantra that “the CPA will clean it up at the end of the year.” Well, not unless we are auditing it (and it is within the scope of the audit). If your revenues only require you to have a Compilation per FL Statutes, that is not likely something a CPA will investigate.


It is very important for your monthly financial package to have supporting schedules for all balance sheet items, bank reconciliations, and bank statements. This is also why it is important to have a licensed property management company that has the tools in place to provide this detailed information. See “Get Managed and Stop Losing Track.” Having this information in your monthly financials will keep everyone accountable and allow the Board to verify all the information ties to supporting schedules on a regular basis.


Disclaimer time... We do our best to provide the most up-to-date and relevant information with our subject matter. It is our opinion, and we are not a government entity nor an authoritative source for professional research. Always hire a professional when you want the most accurate information as it relates to your company/association specifically.


If you have a topic that you'd like to see addressed, please email us and we will add it to our topic list. Click here for our contact information.

  • Matthew G. Baratz

There are over 50,000 associations in the State of Florida. Millions of people live in associations. There are 30-40% of US associations that are considered self-managed.[1]


Being self-managed carries a high-risk factor. You have unit owners controlling all aspects of the association with little or no internal controls. They have access to the accounting systems, keep track (or do not keep track of) receivables, etc. When assessing audit risk, we have a much higher measure on self-managed associations than managed associations. Which also means that you will pay a higher fee.


When you hire a management company, you are paying for these internal controls. Sure, it can be expensive (Everything is expensive these days). You want to make sure you aren’t saving money on management fees to lose it on uncollectible assessments, poor oversight of projects, higher costs due to lack of bargaining, etc. Using a management company gives you access to entire departments for processing transactions, such as Accounts Receivable, Accounts Payable, Accounting, and Property Management. Segregation of these duties is a huge risk mitigator.


It will also save you time. When you find the right fit with a management company and property manager, you will soon find the time to spend with your family (or golfing!).


Disclaimer time... We do our best to provide the most up-to-date and relevant information with our subject matter. It is our opinion, and we are not a government entity nor an authoritative source for professional research. Always hire a professional when you want the most accurate information as it relates to your company/association specifically.


If you have a topic that you'd like to see addressed, please email us and we will add it to our topic list. Click here for our contact information.

[1] 2020StatsReview_Web.pdf (caionline.org)

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