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Subject:  Property Mgmt Co also home owner
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01/24/2008 1:02 PM  
What are the specific conflicts of interest if a property owner wants to also be hired as the property mgmt co. Our board needs specific reasons for mtg where other owners back this proposal.


01/24/2008 2:10 PM  
OOOHhh... Why would anyone want to put themselves in that situation? I'm referring to the owner that wants to be P.M. Is He/She qualified and already involved in this industry? I'll be following this one for further comments.


01/24/2008 2:10 PM  
This is what our Board just did. First the HO/PM got herself appointed to the Board....Had never attended a meeting, showing no concern for the community. It wasn't a month before she had convienced the Board to fire the MC we had and hire her MC. May I add that hers was approx. $400.+ more. May I also add that for the last two years the Association ran out of money before the end of each assessment period. I feel a "Special Assessment" will most certainly occur this year.


01/24/2008 2:49 PM  

Hi Sidney,
Is your new P.M liecnsed in the State? She is required to have a current Florida Licensed Property Managers license. And yes, why would she want to manages her own association. Life could become very miserable for her soon.
(South Carolina)


01/24/2008 3:39 PM  
To all,
Our documents state that no owner can receive any salary from the association. Board member can be paid for expenses to attend meetings.

Seems like the reasonable thing to do. Why do people do stuff like this. The Board is responsible and if there is any law in Florida about this Donna will know it. How can it not be conflict of interest.


01/24/2008 3:56 PM  

Sorry--I missed this earlier as the supper was a burning. Anyhow, tell us what this owner is doing right now. You said that she got herself appointed to the Board. Is she still a Board member? Then she had your Board hire her M.C? Does she work for a M.C or is she doing the management herself?

And your association ran out of money before the end of each assessment period. How did you finish up at the end of the year? Sometimes we have a bad quarter but it balances out in the end.


01/24/2008 4:10 PM  
Hi everyone. I was the one who posted this question.

Let me explain. A board member is NOT involved. An owner who owns several units and also runs the front desk (it's a condotel) also wants to be hired as the property mgmt co. I'm not concerned with why anyone would want to do this - suffice to say there are self serving reasons. I just need the objective, conflict of interest reasons why an association would not want to hire them so the reasons can be presented formally. Thanks.


01/24/2008 5:20 PM  
MONEY...yes, the MC is licensed....she doesn't live there, she rents, is an investor


01/24/2008 5:51 PM  
She is partners w/another lady, they own the company....she resigned from the board after she was hired....Yes, we ran out of money, "how did we finish out the year?" The Board allowed the MC to borrow from the reserves and they use the money that comes in early for the up coming dues....therefore we always start out in the hole.

I had a meeting w/this new PM yesterday. Some of the questions I ask was: "Why would you want to manage our Association, since you knew we couldn't afford you?" Her only answer was "You'll find we are worth it." She has to know we will need a Special Assessment, if we can't pay our bills now. A Speciall Assessment doesn't bother her, because being an investor, its a right off and their business does not only manage HOA's, it is a reale eatate company and also deals in rentals (easily keeping her unit rented). "Why, has no money been placed into our reserves since April and months before that skipped? Of course now I know after seeing the financial, the Board used to money for the bills. I don't understand how the Association can use next year money to pay last years bills. Told that this was perfectly legal. "Wanted to know why if our fiscal year begins on Jan. why can the President whole our Annual meeting in Mar. but does the budget the end of Dec. Yet the HO's know nothing about it or will know or see it until March.? She said the Board can set the Annual meeting when she wants?....I left there not a very satisified HO and minus my $409. semi annual dues.


01/24/2008 6:07 PM  
Is this Sidney's or Janice's thread?
I am confused.

(whoever is jumping on the main thread - Please start a new one for tangential issues)


01/24/2008 6:11 PM  
Thanks Susan. I was wondering myself and grateful that you brought this up, especially because I still need help.

Please see my recent reply which elaborates on my situation.

(South Carolina)


01/24/2008 7:00 PM  
Ok> Is this right?
An owner already works for the Association as a front office something or other.

Does she get paid by the Management Co or the Association?

Now she wants to also be the PM and has a License approved by the state of New Jersey?

What happens to the first management co?

Is she also going to continue being the front office worker?

She is not on the Board and never has been?

Are you sure your documents do not address Owners working for the Association.

Who pays her now?

Why was she allowed to work for the association?

Does your State Statute address this issue?

Who is on the Board, any relative of this person?

Do you have an association Lawyer?

Has he rendered an opinion in writing?

You should get everything you can that is in writing about this employee and any job descriptions she now has, who pays her? Who signs her checks.

Get anything you can get that deals with the Board and any dealings they have had together.

First, stop at alegal aid office and ask them your question about conflict of interest.

Get some interest and support from the owners and form a group.

Call a town hall meeting of your owners to discuss this.

Foogle the names of all the people and companies involved for information purposes. Build you case.

See if you can't get a first visit free from an attorney to ask your question.

Are you incorporated by the state? If so, research that document for anything in writing about the subject.

Personally, since even SC has a prohabition against owners working for board, I suspect NJ does also.

Contact your States Attorneys office via e-mail.

Lots of sites on internet that gave a ask us feature by Lawyer sites, you can e-mail them this question.

I(f you are in the vicimity of any other conhotels ask them>

Is their a special statute by the state that addresses condhotels or wharever they call them.

You are looking for ammunition at this point. Yoy need to influence the owners and get them involved.

If it works out there is really no probition against this, and I doubt it, then the thing to do is make plans to recall the Board.

You are along way from doing that but you may need to force the Board to get this action to hire this person before the members.

You will learn, and it will be a process, not a simple answer.



01/25/2008 5:10 AM  
JaniceK: Well, "condotel" is a new one on me. I could speculate that you may not have the problems in a condotel that you would have for the same situation in a single family home community. I would think the problems are minimized in your situation based on living quarters, with minimum of outside concerns.

Since this person is already at the front desk they have a knowledge of those who consistently present 'problems'--and now they are requesting to handle the property-portion of the community as Property Mgr. Go figure!!!

What I would be conscious of would be how the contract would be worded; in that, this person cannot 'hire' any contractors (alleviating possibility of another layer of 'payout'); also does this person hold a Prop.Mgr. license in your state? Do they have the experience and can they provide references from other communities? As desk clerk is this person presently the community's employee? Would the added role cause the community to file as an employer? What do your docs state on responsibilities of a Prop.Mgr.?

We would be interested to know what responsibilities a Prop. Mgr. of a 'condotel' would assume. Perhaps the "desk clerk" already handles them...?

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