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CONDO TERMINATION PREDICTION
By
Rafael Aquino
Published August 9, 2023
South Florida,
celebrated for its tropical charm, is on the cusp of a potential
real estate upheaval. The looming prospect of increased condo
terminations is primarily driven by the introduction of the SIRS
(Structure Integrity Reserves) requirements, followed closely by the
surge in insurance costs and other contributing elements.
The recent
implementation of SIRS requirements has emerged as a pivotal
catalyst behind the predicted surge in condo terminations. Condos
with three or more stories are now mandated to fund these reserves
fully. While these reserves are essential for the continuous upkeep
and repair of condo associations, ensuring their lasting appeal and
market value, the increased financial burden can lead to higher
monthly fees for condo owners. This, in turn, may deter potential
buyers and strain existing owners' financial capacity to meet their
obligations.
Concurrently, the
sharp rise in insurance expenses exacerbates the projected increase
in condo terminations. South Florida's vulnerability to hurricanes
has historically meant higher insurance premiums, and recent years
have witnessed an unparalleled spike in these costs. A series of
severe weather events and growing concerns about climate change have
intensified this trend. Condo associations now face the intricate
challenge of sustaining comprehensive insurance coverage while
maintaining affordability for unit owners.
Adding to the complex
landscape, many condo complexes in South Florida were constructed
between the 1960s and 1990s, as well as during previous real estate
booms. As these structures age, the need for frequent and costly
maintenance becomes apparent.
The culmination of
these factors brings forth significant implications. If the expenses
outweigh the advantages, associations may sell their properties to
developers. However, it's crucial to underscore that not all condo
complexes are destined for termination. Condo owners and potential
buyers are encouraged to carefully scrutinize a condo association's
financial health, reserve funds, and possible assessments to make
well-informed decisions regarding their investment path.
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As the Co-Founder and CEO
of Affinity Management Services, Rafael P. Aquino leads his team to
redefine excellence. They serve community associations
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and effectively with
dedication and passion. Rafael’s energy and positive
spirit is the foundation of Affinity Management
Services’ company culture, which instills enthusiasm and
excitement when providing expert advice to its board
members and relieving the day-to-day burdens of running
a community association.
Since 2007, Rafael has
developed a work culture that values responsive and
high-quality services. He has led his team by following
a proactive vs reactive philosophy. The same approach
Rafael instills in the day to day operations of each
association. Today, Affinity Management Services
maintains its success and benefits as a result of the
foundation Rafael has built and continues to foster by
providing educational seminars, continuing education
classes for association managers and board members
alike.
Rafael and his team help condominium and homeowners’
associations save money and improve their communities.
His calm, personable, and service-oriented nature helps
him to establish strong relationships with ease. Rafael
is known as a sincere and honest leader who looks out
for the best interests of his clients and communities,
and he strongly advocates for their needs. His role
requires coordination and communication, as such he
takes logical and intelligent steps to approach
challenges head-on.
As a graduate of Florida International University’s
electrical engineering program and a licensed community
association manager, Rafael’s education and skills equip
him with unique insights to tackle complex problems
through critical thinking. He understands how each
component within a system works together in order to
effectively arrive at solutions, techniques, and
conclusions. Therefore, as he manages the multiple
challenges of running a community association management
company, he understands how each property is its own
unique system and tailors’ specific services to assure
that all their needs are met.
For more information about Rafael P. Aquino and Affinity
Management Services please visit
www.ManagedByAffinity.com or call 1-800-977-6279
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Doral Office: 8200 NW 41st ST
Suite 200
Doral, FL 33166
Broward Office: 150 S Pine Island RD Suite 300
Plantation, FL 33324
O: 800-977-6279 ● F: 305-325-4053
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