April figures show Marco home market growing at healthy pace

April figures show

Marco home market
growing at healthy
pace

Written by

Bill Filbin

May 26, 2011|

Statistics for Marco Island-only properties
from the Marco Island Area Association of
Realtors Multiple Listing Service continue to
show high sales activity.

Pending listings, all property types, are up
in the year-to-year comparison (April
2010 to April 2011) by 22.03 percent and
up in the month-to-month comparison
(March 2011 to April 2011) by 7.46
percent.

Total all property types closed (Marco
Island only) is up by 36.25 percent in the
March-April 2011 comparison and up by
almost 2 percent in the yearly comparison.

The average sales price was up 32.47
percent in the monthly comparison and up
12.73 percent in the yearly comparison.

The median sales price was up 25.98
percent and 1.27 percent respectively in
both comparisons.

Total sold dollar volume was up 80.49
percent in the month-to-month comparison

and 14.83 percent in the yearly
comparison.

Meanwhile, inventory on Marco Island
continues to decrease.

Total active listings, all property types, are
down from last year by 7.40 percent and
down in the month-to-month comparison
by 4.96 percent.

Delinquent Homeowner dues collections procedure

In last month’s newsletter, I wrote about delinquent homeowner dues and how the boards can become more aggressive with collections.

This month I will focus on what the state of Florida has done to help Hoa /condominium boards in terms of regulations that has helped many associations recover some, if not all back dues.

Basically, the new law allows associations to collect fees directly from renters if the owner-landlords don't pay up! If a renter pays rent to an owner-landlord that is at least 90 days behind in their dues the association now has the right to grab that monthly rent check that is heading to the owner-landlord. This law has been on the books for some time but I wanted to bring it up again since there are so many boards that are not taking advantage of this law.

It amazes me how some boards are shying away from this tough stance at the expense of the others. Maybe it’s because the boards do not want to offend anyone. Maybe it’s because the boards want to live in peace and not get their car/home or any other personal item vandalized. But whatever the reason is one thing is certain, the board has a fiduciary responsibility to all homeowners. This is a tough statement but it’s true. Boards have a very tough job. They have to run the association with everyone in mind not just a few. So what is a board to do? Where should the board start?

Before any collections of rent start, my first call would be to your attorney. I always recommend asking your in-house attorney for advice in matters like this. Most firms are now experienced with this type of collections procedures and have the tools to help. For example, some law firms have specially designed forms specifically for tenant rent collection. Some attorneys have short forms some have long forms like the law firm I worked with in Orlando, Florida which had a three page notice that went to the tenant and the owner-landlord.

In any case, once the owner-landlord / tenant receive the notice be prepared because the calls will start coming in. And keep in mind most tenants haven’t heard of such a law. As far as their concerned, they have a lease with the owner-landlord not with the association.

It‘s amazing how this new law has helped so many associations recover past dues. It’s also amazing how few boards are taking advantage of it. Again, maybe the boards do not want to offend anyone. Maybe they are in fear of their personal property whatever the reason you, as a board member, should make it your priority to get the monies due your association.

So, you may ask where do you start? How can my board try and limit exposure to retaliation? The answer is simple. Hire a management company to handle the dirty work. By hiring a competent management company you help insulate yourself, somewhat, to direct retaliation. By hiring a competent management company you now have a buffer between you and the owners / renters. Let the management company take the full force of the upset homeowners /renters anger / fears. You have enough to worry about. Right? You don’t need aggravation and late night door knocking. What you need is an efficient and predictable way to handle these types of situations, especially in this very tense environment we are now living in.

So, if you need advice, feel free to contact me. I will help anyway I can. But please start a program, any program, that captures renters monies going to delinquent homeowners pockets instead of your association’s where it belongs.

I have a more detailed plan I used in the past for other associations. If you would like a FREE copy just simply call or email me your request. I will be happy to send it to you free of charge.

561-707-4900

Frank LaMorte

Lcam, Broker Associate

Schlitt Property Management

Coldwell Banker Commercial

Frank.LaMorte@ColdwellBanker.com

Housing Market Conditions

Gradual and uneven progress in the housing market continues without government support. The market has shown remarkable improvement from the initial drop after the expiration of the home buyer tax credit this past July. Although higher-than-normal distressed sales skew the overall picture of home prices downward, inventory remains at pretax credit expiration levels.

The rock-bottom interest rates of2010 are likely to trend upward. As economists anticipate rates at or above 6% by the end of 2012, buyers are moving off the sidelines and into the market.

Recent reports suggest the economy is picking up steam even though it is not yet fuly reflected in the job market. In terms of economic growth, America outpaces all the other G7 nations except Canada. However, when it comes to adding back jobs, America is the weakest. During the recession, businesses looked for ways to increase efficiency and productivity. U.S. productivity, or output per worker, doubled in both of the past two years. A ful housing recovery depends on growing employment. Without jobs, most Americans cannot buy new homes or afford their current ones. As the economy continues to pick up steam, employment wil likely folow suit as there is a limited amount of productivity workers can provide.

While the economy improves, stimulus efforts by the government and the Federal Reserve Board wil gradually wind down, which typically spurs rising interest rates. Meanwhile, buyers continue to benefit from historicaly favorable buying conditions and sellers are encouraged by increased market stability.

Home Sales

Although home sales have falen 9.6% compared to the previous month, they remain close to last year’s levels, showing only a 2.8% decline. The unseasonably cold weather across much of the country during late January and February could have kept buyers indoors more so than normal. Gradual improvement with bumps along the way has long been the anticipated road to full recovery. In fact, home sales remain 26.4% above the low last July. As Lawrence Yun, chief economist of the National Association ofRealtors, explains “month-to-month movements can be instructive, but in this uneven recovery, it’s important to look at the long-term performance.”

Home Price

Home prices continued to soften in January with median home prices decreasing to $156,100. This is 5.2% below the year-ago level and brings the median price close to February 2002 levels. Two out of every five homes sold during February, or 40% of sales, were distressed properties. Distressed sales often sell for 10%~20% less than traditional home sales. The decline in home prices is less reflective of the value of individual homes and more reflective of the bargains that a record level of al cash buyers and investors are snapping up. Prices and mortgage rates remain favorable for buyers as the spring selling season.

For Free information on what your home could sell for simply e-mail me at:

Frank@FrankLaMorteRealty.com or call 561-707-4900

Delinquency Rates are Climbing ..What can you do?

Is it abuse?

YES! It’s abuse because each
and every homeowner knew prior to closing
on their home that the only way the
association can pay their bills is by all
members collectively putting in their share
of the money. Heck, they even receive a
Budget every year outlining the expenses.
They even know the association is a not-
for-profit corporation which basically
means there should be zero profit at the
end of the year. So why do these
homeowners stop paying their dues? Why
do they think they can get away with not
paying their share of the bills? The answer
is simple. Each homeowner has their own
reasons for not paying their share of the
bills. But that doesn’t mean that as a board
member, which has a Fiduciary duty to all
members, you should sit back and watch as
the asset starts to deteriorate.

Which brings me to my next point. The
solution! What should a board do and how
should they go about reducing
association’s receivables?

The answer is simple. The board should
start by becoming aggressive with the ones
that are not paying. The board should start
by calling every day; send letters weekly;
take them to small claims court; do
whatever it takes to get these folks to pay.

But do you know most boards don’t do
this. When you ask the boards why they
are not aggressive their response varies
from “well, we live amongst them” to “we
feel their pain”

Well what about the pain of the ones
that are paying? What about them? Don’t
they deserve some respect for being on-
time with their payment? Most would
answer YES to that question. In addition,
I’ve found that boards do care. They just
don’t know where to start. If this sounds
something like your association then let
me help by suggesting that you start
becoming aggressive with collections.

How Aggressive? Very! There are a lot of
companies out there that are willing to
help. For example, one company I’m
familiar with will buy your receivables.
However; this company requires a
contract that MUST be reviewed by your
attorney before you do anything.

In my next issue I will discuss what the
state of Florida has put together to help
associations recover some past monies
and how by engaging the right company
you can be on your way to solvency.

If you have any questions or if you would
like a FREE evaluation please call me
today:

561-707-4900 or email
FrankLaMorteLLC@Gmail.com

Licensed Florida Community Association
Manager and Real Estate Broker

HOA Rules Chapter 720

I have been thinking a lot about Home Owner Associations located within the state of Florida and thought it was a good idea to list just one section of Florida law to help the newly elected board member and or new resident understand the importance of knowing this law which is titled FLA. Chapter 720.

If you would like me to attend one of your association's meeting to go over this more throughly feel free to call or email me. My cell is 561-707-4900. Enjoy. Frank

720.303 Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.

(1) POWERS AND DUTIES.--An association which operates a community as defined in s. 720.301, must be operated by an association that is a Florida corporation. After October 1, 1995, the association must be incorporated and the initial governing documents must be recorded in the official records of the county in which the community is located. An association may operate more than one community. The officers and directors of an association have a fiduciary relationship to the members who are served by the association. The powers and duties of an association include those set forth in this chapter and, except as expressly limited or restricted in this chapter, those set forth in the governing documents. After control of the association is obtained by members other than the developer, the association may institute, maintain, settle, or appeal actions or hearings in its name on behalf of all members concerning matters of common interest to the members, including, but not limited to, the common areas; roof or structural components of a building, or other improvements for which the association is responsible; mechanical, electrical, or plumbing elements serving an improvement or building for which the association is responsible; representations of the developer pertaining to any existing or proposed commonly used facility; and protesting ad valorem taxes on commonly used facilities. The association may defend actions in eminent domain or bring inverse condemnation actions. Before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained. This subsection does not limit any statutory or common-law right of any individual member or class of members to bring any action without participation by the association. A member does not have authority to act for the association by virtue of being a member. An association may have more than one class of members and may issue membership certificates. An association of 15 or fewer parcel owners may enforce only the requirements of those deed restrictions established prior to the purchase of each parcel upon an affected parcel owner or owners.

Below is the link to view the whole statue:

http://www.flsenate.gov/statutes/index.cfm?App_mode=Display_Statute&URL=Ch0720/ch0720.htm

A well run board meeting...

So you live in this wonderful community. The board members are really nice and the manager always smiles. But is there something just under the surface that is hiding out waiting to pop up and bit the community when the time is not perfect?

Well if you attend board of directors meetings you should be able to answer that question with relative ease. If not I suggest the next best thing. Request and read a copy of the board minutes. That's right the board minutes. What will the minutes show? Many things. One of them being how well your board runs these meetings.

A well run meeting is a good indicator that the leadership of your community is managing the affairs effectively. First, every board member should be acquainted with Robert's Rules of Order. These rules establish a procedure for making , amending and discussing motions presented by other members. But be careful. Check your association documents to see if it specifies Robert's Rules of Order for your meetings.

Second, does the board follow the posted agenda? The agenda items Must be followed in the order it's written. Third, do motions get seconded; discussed and then voted on or does the vote get put off for another time? Forth, does the membership present amount to over 6% of the total number of unit owners? A well run association attracts attendances in the neighborhood of 10% or more.

And lastly, I suggest you order copies of board minutes from the past six months and read them. By doing so you will be more informed as to the direction your association is heading in.

If you have any questions relating to Property Management feel free to email me.
I will do my best in replying back to you withing three days.

Frank

Do you have happy members?

Member Satisfaction is key to running any organization especially home owner and condominium associations.

So let me begin by saying that strong customer satisfaction can be defined as meeting or exceeding expectations of the membership. Great customer service is a balancing act and requires communication with the membership. For example, when was the last time the board members spoke with the membership about the quality of the service? Has the association sent out questionnaires? Do the board members ask questions to the membership? Are the board members willing to ask questions?

If the answer to any these questions is NO then I suggest you get started right now finding out how your community feels about the decisions the board makes.

Don’t delay. Do it now. And remember communication with the homeowners is the best way to build support.

Again, the key to great customer service is communication. And don’t forget that a positive attitude will help you create positive customers.

If you would like me to attend one of your meetings to discuss this topic further feel free to email me at the link below.

Frank
FrankLaMorteLLC@Gmail.com