Being a volunteer board member comes with many responsibilities – but it doesn’t mean you need to act alone. Beyond your fellow directors, you have an entire team who can help your board understand complex issues, make well-informed financial decisions and create policies that positively affect your community.
Alyson Theale, vice president for FirstService Residential, said, “Board members represent a variety of backgrounds and careers, from business and healthcare to education and law enforcement. And the way they solve issues in their career or home life doesn’t always translate to managing an association. There are processes, complex rules to follow, and key players to include in decision making. The good news is – that’s where your professional partners and subject matter experts come into play.” Which association partners should you look to for this guidance? Read on to see a list of nine professionals you should have on your team.
Nine professional partners Florida homeowners and condominium associations should have
1. Florida association attorney
Every homeowners and condominium association should have an attorney on their team. An attorney who is well versed in association law understands the nuances of operating as a non-profit organization. Additionally, having a Florida association attorney on standby means they can assist with understanding state and local laws. Association attorneys can help mitigate liability, provide expertise when it comes to policy creation and enforcement, handle collections, and offer support on a number of legal issues.
2. CPA
As a nonprofit organization, your association’s financials can be complex and daunting. A certified public accountant (CPA) conducts an independent review or audit to ensure the accuracy of your financials. They’ll also help you determine what expenses are exempt versus non-exempt and recommend the correct tax forms to file. Some states require an independent annual review or audit of the association’s financial statements. For instance, the state of Florida requires audited financial statements from associations that report total annual revenues of $500,000 or more. Your management company can help you streamline the audit by helping compile and prepare financial documents for a third-party CPA to review.
3. Management company
Your professional management partner is your lifeline when it comes to consulting with your board, communicating with residents, and keeping things running smoothly – from managing monthly financials to enforcing community policies. As a volunteer board member, it’s not your job to manage the day-to-day administrative work – that’s the role of your management company. For help in choosing the right management partner for your unique association, download a helpful infographic here.
Operating as a self-managed association? Jake Howse, director for FirstService Residential, said, “You should weigh the pros and cons when choosing to forego a professional management company. With uncertainties like changing legislation, inflation, and fluctuating insurance and operating costs, it’s great to have a management partner you can rely on for their expertise and assistance with running your community.” Read an article here to learn about a luxury high-rise that moved from self-managed to partnering with a management company.
4. Reserve study firm
Contracting with an accredited reserve study firm is critical for the health of your association. A reserve study involves both a financial and physical analysis to determine which repairs and replacements will be needed and when, as well as the estimated costs needed to fund those projects. Reserve study requirements vary according to state. According to Florida requirements, a structural integrity reserve study must be completed by December 31, 2024 (with some exceptions) and on a 10-year basis after the initial one is completed. For tips on selecting a reserve study firm, read our article here.
5. Insurance specialist
Variable insurance costs are top of mind for many associations these days. Working with an insurance specialist in condo and homeowners associations is key, as they are often able to evaluate your coverage levels to meet your specific needs. For instance, FirstService Residential-managed properties have the option to leverage FS Insurance Brokers, which offers unique programs and proprietary insurance offerings that can help reduce costs and enhance coverage levels. Typically, FS Insurance Brokers, with their 30+ broker partners, can deliver 5-10% long-term premium savings and loss ratios 25% below market average.
6. Cash management and lending consultant
Having a financial partner on your side is key to thriving as an association and ensuring you have funds to cover valuable improvements and repairs. It’s important to choose a cash management and lending consultant who has specific and substantial experience working with condo and homeowners associations. For instance, FirstService Financial offers various cash management and lending solutions exclusively to communities managed by FirstService Residential. Associations are able to take advantage of strategic partnerships, including access to over 20 lending partners that offer reduced interest rates on loans, yielding 0.3% to 0.5% in savings. FirstService Financial also partners with more than 35 banking partners that provide three times the national average in terms of interest on your deposits.
7. HR and staffing team
Understanding the nuances of hiring staff, managing employees, and administering benefits is key to a healthy association. However, this is typically not the expertise of association board members and, if not handled correctly, can land you in hot water and expose you and your association to potential liability. Make sure you partner with a management company that can correctly staff your association and has an HR team that handles matters relating to the staff, so the board does not have to.
Danny Ellis, president for FirstService Residential, said, “People are the lifeblood of any association, so it’s crucial to have an HR team on your side who can help you recruit new hires, support existing employees and follow legal requirements every step of the way.”
8. Engineering consultant
An engineering consultant is an indispensable member of your association team. They provide detailed guidance on capital improvements and preventive maintenance to keep your community in excellent shape. Having an engineer on call can help ensure you fully understand your condominium or community needs (and prevent significant and costly repairs down the road). Many association management companies have an individual on staff who can perform visual inspections and let you know when it’s time to reach out to your engineer.
9. Restoration company
If you serve on the board of a condominium or community that features a clubhouse or shared structures, you may want to partner with a restoration company. After a storm, fire, or flooding incident occurs, these specialists can help inspect, clean and restore areas that have been damaged by water or fire with specialty equipment and expertise. For instance, First Onsite offers full-service disaster recovery and property restoration through various services, including asbestos abatement, mold removal, hurricane damage restoration and more. After selecting a restoration company, you may want to consider entering into a master service agreement (MSA), so that your community is prioritized in the event of a storm or other disaster.
Excellent professional partners = a stronger association
The good news for you and your fellow board members? You’re not alone when it comes to running your association. As a volunteer board member, it’s not your job to know everything and do everything – that’s where the experts come in. Partnering with the right professionals is key to a strong and healthy association. Start with the 9 specialists mentioned above and work with your management company to ensure you are choosing the right partners to help you on your journey. To learn more, contact FirstService Residential, today.