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MANAGEMENT COMPANIES THAT WANT TO DO IT ALL
By
Eric Glazer, Esq.
Published May 20, 2019
Over the years there has been a rise in management companies
that want to do more than just manage the accounting and
official records of the association. I think many people in the
industry would tell you that there isn’t that much money to be
made from an association if the management company only handles
the records and the finances. The money to be made is in
providing the other services like landscaping, pest control,
routine maintenance and other services.
Obviously, you should know whether or not your management
company owns the other company that wants to provide all of
these services to your community. Florida law for condominiums
provide:
No written contract between a party contracting to provide
maintenance or management services and an association which
contract provides for operation, maintenance, or management of a
condominium association or property serving the unit owners of a
condominium shall be valid or enforceable unless the contract:
Discloses any financial or ownership interest a board member or
any party providing maintenance or management services to the
association holds with the contracting party.
So, there is now mandatory disclosure in a condominium. Is that
enough? Amazingly, there is no similar provision in the HOA
statute.
Some management companies refused to go down the path of
providing services other than pure management. Their owners
thinking that to do so would be a conflict in and of itself.
Some of the larger companies obviously think the opposite and
believe they are simply providing an additional service at a
competitive price.
Remember……if a service provider is not doing a good job, the
manager is supposed to tell them to get their act together or
face being terminated. One school of thought says that a
manager won’t rat on or complain about a sister company.
Today I would like to hear from all of you. What have your
experiences been as board members with management companies who
perform multiple services? Managers, you can write in
anonymously and tell us what you think as well.
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About
HOA & Condo Blog
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Eric Glazer graduated from
the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for more than 2
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decades and is the owner of Glazer
and Associates, P.A. a seven attorney law firm with offices in
Fort Lauderdale and Orlando and satellite offices in Naples,
Fort Myers and Tampa.
Since 2009, Eric has been the host
of Condo Craze and HOAs, a weekly one hour radio show that airs
at noon each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
He is the first attorney in the
State of Florida that designed a course that certifies
condominium residents as eligible to serve on a condominium
Board of Directors and has now certified more than 10,000
Floridians all across the state. He is certified as a Circuit
Court Mediator by The Florida Supreme Court and has mediated
dozens of disputes between associations and unit owners. Eric
also devotes significant time to advancing legislation in the
best interest of Florida community association members.
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