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2012 Tampa Bay Newsletter

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KW PROPERTY MANAGEMENT Corporate Newsletter: 1st Edition

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2012 Tampa Bay Newsletter

  1. 1. A Professional and Independent Approach to Management.SOUTHWEST FLORIDA CORPORATE HEADQUARTERS WEST CENTRAL FLORIDA 2963 Gulf to Bay Blvd, Ste. 2653358 Woods Edge Cir, Ste. 102Bonita Springs, FL 34134 MIAMI Clearwater, FL 33759 8200 NW 33rd Street, Ste. 300239.495.3428 Phone 813.448.3982 Phone Miami, FL 33122 800.514.5770 PhoneCENTRAL FLORIDA TENNESSEE NEW YORK301 East Pine Street, Ste. 150 1211 Bell Road 303 Park Avenue South, Ste. 1214Orlando, FL 32801 Nashville, TN 37013 New York, NY 10010407.705.3236 Phone 615.337.8585 Phone 212.596.7210 Phone - 1-
  2. 2. In thIs Issue:Did You Know?— KW PROPERTY MANAGEMENT & CONSULTING ..........................P 3Is it the Person or the Position? How to Avoid Costly Hiring Mistakes— Kelly Ann Vickers, LCAM ...............................................................P 4Hospitality — It isn’t Just for Hotels. Engaging in Courtesy A Professional and Independent Approach to Management.to Create a Sense of Community— William Mathisen, LCAM. ..............................................................P 7Company Bios ....................................................................................P 8Plan Now or Panic Later – Why Community Association LeadersShould Develop a Plan for their Condominium,Co-Op or Homeowner’s Association.— Andy Ashwal, Executive Director .................................................P 11 -2-
  3. 3. DID You Know?FHA Requirements for Condominium ApprovalsIn accordance with the passage of the Housing and that the budget is adequate and:Economic Recovery Act of 2008, the FHA • Includes allocations/line items to ensureimplemented a new approval process for sufficient funds are available to maintain andcondominium projects. The updated requirements preserve all amenities and features unique tocan be found on the website of the US Department of the condominium project;Housing and Urban Development, but the areas of • Provides for the funding of replacementspecific interest to anyone purchasing in a reserves for capital expenditures and deferredcondominium community can be found in Mortgagee maintenance in an account representing at leastLetter 2009-46 B, and they are: 10% of the budget; andProject Approval II. Eligible Projects: The • Provides adequate funding for insuranceCondominium Project has been declared and exists in coverage and deductibles.full compliance with applicable State law requirementsof the jurisdiction in which the condominium project It is important to note that if the budget documentsis located, and with all other applicable laws and provided do not meet the standards defined by theregulations. This is of importance to buyers particularly in Federal Housing Administration the mortgagee canthe State of Florida which requires the funding of reserves for request a reserve study to analyze the financial stabilityfuture capital expenditures. of the association, and they will not accept any reserve study more than twelve months old.Project Eligibility Requirements, P. 6. DelinquentHomeowners Association (HOA) Dues: No more than If you are interested in learning more about the FHA15 percent of the total units can be in arrears (more requirements for a condominium approval processthan 30 days past due) of their condominium then visit the HUD website at www.hud.gov orassociation fee payments. espanol.hud.gov to review all of the documentation in Spanish.Project Eligibility Requirements, P. 11. Budget Review:Mortgagees must review the homeowners’ association This Information is being reprinted from the HUD website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgageebudget for all projects. This review must determine Annual Bonuses the holidays and year end are fast approaching, and most associations are contemplating that year-end bonus or holiday gift for the employees on the property. “every year at this time we have to remind board members that their best intentions can produce the worst consequences when attempting to reward an employee financially for their performance outside of their normal pay,” indicates Robert white, CPA and Managing Partner for Kw Community Association Institute PRoPeRtY MAnAGeMent & ConsuLtInG, “as the IRs Publication 15-B clearly indicates that the monetary Day and Trade Show—New Jersey gift is considered a taxable fringe benefit.” In order to the annual Community Association Institute Day and avoid penalties Robert indicates that the board should trade show will be held at the new Jersey Convention & comply with the IRs requirements of treating the exposition Center in edison, new Jersey on saturday, additional moneys as a fringe benefit, and adding the october 27, 2012, with registration beginning at 7:45 AM. value to the employee’s pay for the appropriate For more information or to register for the event visit the withholdings. CAI website at http://www.cainj.org/ - 3-
  4. 4. Is it the Person or the Position? How to Avoid Costly Hiring Mistakes—By Kelly Ann Vickers, LCAM, Business Development ManagerIf asked to define the greatest challenge being faced by business world for the past decade has been employeean association today, most individuals will recite a litany recruitment and retention with an emphasis on theof financial difficulties, building calamities, insurance tangible and intangible impacts of hiring the wrongclaims, and a legal issue or two. Yet, when contemplating person. The tangible impact, the cost of replacing a badthe multitude of mishaps that can have a significant recruit, is often estimated to be one-third of up to fiveimpact on the successful management of an association’s times the employee’s annual salary1.operations, the most overlooked, yet seemingly simple The intangible impacts are often far more difficult totask, is ensuring that the right people are in place. quantify from a cost perspective as they are not asIn order to understand the impact employees have on immediately visible. The intangible elements oftenan association, visualize each individual team member as include lower morale among the remaining employees,a foundational component, and the day-to-day greater frustration from the residents, incompleteoperation of the association as the physical structure projects, unpaid association bills, and the transition oferected upon the foundation. If the foundation is weak the board members from volunteers to unpaidin any area then the weight of dealing with financial employees as they dedicate more of their personal timechallenges, insurance claims, resident needs, to the association to take on responsibilities beingmaintenance requirements and legal issues will create neglected by the wrong hire.significant stress. This continual stress will ultimately Considering all of the articles and examples availablecause the foundation to fail leaving anger, frustration regarding the impact of the wrong hire one has toand additional operational issues in its collapse. ponder “so why does it still happen”? According toThe single most researched and debated topic in the 1 Costs of Hiring the Wrong Person Go beyond the Financial – The Finance Professional’s Post.A publication of the New York Society of Security Analysts (NYSSA). -4-
  5. 5. Suzette Diaz, Human Resource Manager for KW the importance of filling this position now, but we don’tPROPERTY MANAGEMENT & CONSULTING, “most want to have to interview for the job again in six monthsmistakes are made because thosewho are tasked with the hiringprocess not only confuse the jobdescription (duties) with the jobcriteria (skills), but they tend toseek out candidates who fill animmediate need without thinkingabout how the position may evolvebased on the changing demandsand needs of the community.”“We have seen job descriptions thatare so detailed that they encompassfour pages of responsibilities,”Suzette indicates, “but then thecriteria is often vague andconflicting.” Before attempting tohire any employee first understandwhat the job responsibilities are,what the desired outcome is, andthen define the required skill set. Arecent survey by Robert Half, one of the world’s largest because we made a decision based on a sense ofstaffing agencies, demonstrated that thirty-six percent of urgency.”the executives surveyed felt that the primary factor To ensure that the right candidate for Resident Managercontributing to a bad hire is poor skills match with the is selected for the building, Andy and other members ofsecond most common reason being unclear the Board of Directors, are practicing interviewingperformance objectives2. techniques that are often recommended to avoid“Another common hiring mistake is not considering the cultural clashes including cross interviewing with otherculture the individual is being hired into,” indicates board members, and interviewing in venues away fromGrant Horwitz. “In my role of Chief Operating Officer the standard conference room to gauge how thefor KW PROPERTY MANAGEMENT & CONSULTING, candidates interact in an uncontrolled environment.I spend a great deal of time educating our hiring “Some days,” Andy indicates, “there will be a lot ofmanagers why the cultural fit is just as important as the background noise, disruption and distraction when thisskill set when placing managers and staff at a property,” person is the Resident Manager, and we are trying tostates Grant. “We meet candidates who have all of the develop a sense of how this person would handle therequired skills and more, but that doesn’t mean they will environment before they are ever exposed to it.”be a fit for an association who has a very involved board In addition to defining the immediate and futurewhen they have spent the past three years employed by responsibilities of the position, the skills, character andan association whose board members all live out of state competency that will be conducive to the position andeight months out of the year.” taking into consideration the culture of the associationAndy Ashwal, Executive Director for KW PROPERTY the hiring manager will also need to ensure that theMANAGEMENT & CONSULTING’S New York office, candidate participates in a pre-employment screeningunderstands culture all too well. “I serve on the board of process.directors in the building where I live, and we are “At KW PROPERTY MANAGEMENT & CONSULTINGcurrently interviewing for the position of Resident we utilize a rigorous screening process to attempt toManager,” Andy states, “This position is vital to the eliminate any surprises,” states Suzette Diaz. “In ouroperation of our building, but we are taking our time in industry it is imperative that we take every measureselecting and interviewing candidates. We understand possible to protect the associations we represent from 2 Costs of Hiring the Wrong Person Go beyond the Financial – The Finance Professional’s Post.A Continued on page 6. publication of the New York Society of Security Analysts (NYSSA). -5-
  6. 6. Continued from page 5.Is it the Person or the Position? How to Avoid Costly Hiring Mistakes the harmful impact of hiring someone who has a history interview or even of the last employee, and going of theft, substance abuse or filing workers with your gut instinct based on the initial compensation claims,” Suzette says. All too often people impression of the candidate. If you are drawn to who hire people tend to overlook the fundamental someone in the first ten minutes you will spend things that need to occur during the process – the next fifty minutes of the interview internally including conducting prescreening processes that justifying why this person is right for the could prevent issues from ever occurring. position, and you may miss the clues that To ensure that your association is hiring the “right” indicate why the person isn’t right for the person and not just the “next” person we suggest that culture. the following strategies be implemented: • Be consistent in the interviewing process: Ask • Clearly identify the need – throw out that job each candidate the same set of questions, and jot description from two years ago, and avoid down their responses to be compared later. Be categorizing what the last employee did. Create a sure that the interview is structured, ask job description that encompasses the needs and questions related to the position and the culture, expectation of the position, and then create an and avoid predictable questions that require overview of the experience, skills, competency little thought on the part of the respondent. and character that are needed for the position. • Have a pre-screening process in place and use it. • Interview for the culture and not just the • Hire an individual only when the right person position: some of the most common pitfalls in has been identified; never hire out of the interview process are leaning towards a desperation. candidate who is similar in thoughts, actions or attitudes of the individual conducting the For more information on how KW PROPERTY MANAGEMENT & CONSULTING can assist your association, please contact the Business Development Manager in your area (page 9), or visit our website at www.kwpropertymanagement.com -6-
  7. 7. Hospitality – It isn’t Just for Hotels Engaging in Courtesy to Create a Sense of Community—By William E. Mathisen, LCAM, Business Development ManagerImagine working a ten hour day after learning your Robert White, Managing Partner and Co-Founder ofluggage didn’t take the red eye from LAX with you, but KW PROPERTY MANAGEMENT & CONSULTING.two hundred forty other travelers with an affinity for “Internally we began to have discussions regarding howelectronic gadgets emitting bright lights and synthetic these reductions would impact the morale of asounds did, spending two hours competing to move ten community, and, as a result, we began to implement amiles in traffic after finding a huge dent in the side of hospitality strategy that is included in our serviceyour car courtesy of the guy parked next to you at the offerings.”airport, and the only thing you are looking forward to The focus of the hospitality program cultivated by KWwhen you get home is a three mile jog to release your PROPERTY MANAGEMENT & CONSULTING is suchfrustration into the concrete. that it can be utilized by an association of anyWalking through the front doors of your condominium demographic and design. “Most people equatelobby feeling dejected and exhausted, sans your favorite hospitality with luxury,” states Sandy Bennett, “but theblue suit, you hear the concierge call your name, truth is you can have hospitality without luxury, but not“Good evening, Mr. Williams, I thought you might be luxury without hospitality.”going for a run tonight so I have a bottle of cold water The concept employed by KW PROPERTYand a towel for you when you get back.” MANAGEMENT & CONSULTING is simple: provide exceptional service to all residents, without hesitancy, to ensure that their experience is a positive one. “Our mantra is ‘The answer is yes, now what is the question,’” said Paul Kaplan, Managing Partner and Co-Founder of the company. “We believe that each resident deserves to have their concern addressed in a professional, pleasant and positive manner. We all face a barrage of complaints, crises and moments throughout the day where we feel overwhelmed and under- appreciated, and we all look forward to returning to ourSuddenly, your day — and your blue suit —seems a little homes. We want the residents of the communities thatless important because someone took the time to we manage to feel that their home is a welcoming place,remember YOU. “This is the essence of hospitality,” a safe and comfortable haven if you will, and we believeindicates KW PROPERTY MANAGEMENT & that you can increase the level of service to yourCONSULTING’S Executive Director Sandy Bennett, residents without increasing costs.”“the unsolicited regard and generosity towards How do you provide hospitality services to youranother.” residents with a limited budget, modest staff, and aThe concept of hospitality, although archaic in its scintilla of experience? We suggest that you start byorigins, has been making a rather nouveau resurgence observing the interactions between the residents andin the past few years and in arenas outside of the the association staff, and record the followingtraditional lodging industry. “When the housing market observations:turned four years ago we witnessed a large number of • When are the highest numbers of residentsassociations choose to reduce services to their residents seeking assistance from the staff? Is there aand communities in order to decrease costs,” laments specific time or day that seems to be busier? Continued on page 8 -7-
  8. 8. Continued from page 7.Hospitality — It Isn’t Just for Hotels • What are the reoccurring issues that are being association, and have the experience of incorporating reported? Can these issues be corrected? Are hospitality into each interaction. they issues or misconceptions regarding Practical Next Steps: expectations? • Observe your association (see above). • How is the communication between the • Create a hospitality critical to quality (CTQ) residents and the staff? Is it free flowing and list. positive, or is it evident there is tension and • Review your managers recommended stress? hospitality specific training that aligns to your Once you have recorded your observations it is CTQs. incumbent upon you, as the Board of Directors for your association along with your management • Develop your associations specific hospitality company, to have an open dialogue on ways to program including an implementation plan. improve the home owners experience, create a plan • Implement your hospitality program and based on that dialogue, and effectively roll an measure the results. association specific hospitality program out to your • Continue to refine your hospitality program to community. The best implementations of hospitality address new CTQs. programs are with management companies that are adept at supporting the various requirements of an C O M P A N Y B I O REGAN MAROCK Executive Director of Business Development Regan Marock received his Bachelors of Science department as well as the companies Business Business Administration in Finance from the Development team. Regan has been instrumental in University of Florida. He is a licensed CAM as well as a developing the companies Business Development licensed Realtor. Regan was actively involved in all growth platform allowing for a smoother transition aspects of Real Estate such as the acquisition and into new markets. management of residential assets while attending Mr. Marock additionally has substantial involvement University of Florida. with the maintenance of the relationships with the 3rd In August 2006, Regan joined the KW PROPERTY party vendors within the companys network. On MANAGEMENT & CONSULTING team. Since Regan January 1st 2011, he was made an equity partner at the joined the team, he has been intimately involved with age of twenty six. the acquiring of new management contracts and the residential portfolio growth from 10,000 units to Contact Information: approximately 40,000 units. Currently, Mr. Marock Office: (305) 476-9188 oversees the operations of the Business Development Email: rmarock@kwpropertymanagement.com -8-
  9. 9. C O M P A N Y B I O ANDY ASHWAL Executive DirectorAndy Ashwal, who joined KW PROPERTY hundred eight unit luxury residential condominium.MANAGEMENT & CONSULTING in 2012, is the During this process he was responsible for all aspects ofExecutive Director for the firm’s New York office where the development process including due diligence, pre-he has applied the knowledge and experience garnered construction, construction, lease negotiation, turnover,in the residential and commercial real estate property management and disposition.development market to facilitate and manage the firm’s Prior to joining AFI, Andy was an assistant constructionexpansion into the New York City metropolitan area. manager at Atrimus Construction where he completedBefore joining KW PROPERTY MANAGEMENT & the excavation, foundation and base superstructure forCONSULTING, Andy served as the Director of 5th on the Park. Andy is a graduate of GeneralOperations at LCI, a boutique construction Electric’s prestigious Information Managementmanagement and owner’s representative firm focused Leadership Program, holds a Bachelor of Scienceon municipal and residential construction. Andy’s degree from the University of Maryland, and a Master’sexperience also includes his tenure as a Senior in Construction Executive Management from NewDeveloper for the international real estate York University. He also serves as a board member ofdevelopment company Africa Israel’s US office. While the Jewish National Fund’s New York City Board andwith AFI, Andy was responsible for overseeing the Co-Chair of Council of Young Jewish Presidents.redevelopment of the former New York Timesheadquarters including the construction of a seventy- Contact Information:four lane bowling alley, a museum caliber exhibition Direct Line: (212) 596-7210space and AFI’s corporate offices. Additionally he iPhone: (917) 453-1518managed the completion of 20 Pine Street, a four Email: aashwal@kwpropertymanagement.com KELLY ANN VICKERS Business Development ManagerKelly Ann Vickers is the Business Development Kelly Ann, who holds a Bachelor of Arts in PsychologyManager for KW PROPERTY MANAGEMENT & from Saint Leo University, spent over twelve years inCONSULTING’s West Central Florida region where the business consulting industry where she assistedshe oversees all business development, vendor companies in identifying areas of the business thatrelationship management and education coordination could be streamlined to reduce redundancy andfor the members of a Board of Directors in unnecessary expenditures. This experience, incondominium and homeowners associations from addition to the knowledge she gained while serving asHillsborough county to Pasco county in the north, and the Director of Marketing for Sunice, Inc., a real estateinto Sarasota and Manatee counties. development firm who envisioned and constructed theKelly Ann has been with KW PROPERTY five hundred four unit residential community ofMANAGEMENT & CONSULTING since February of Wellington Edge, has enabled Kelly Ann to assist board2009, and prior to joining the team she had gained members in making the best management decision forrecognition at Coldwell Banker the Condo Store for their association.her ability to consistently produce the largest number Contact Information:of contract closings in a turbulent marketplace byunderstanding the needs of both the Developer and Direct Line: (813) 448-3982the buyer, and effectively negotiating agreements that iPhone: (727) 412-5195would benefit both parties. Email: kvickers@kwpropertymanagement.com - 9-
  10. 10. C O M P A N Y B I O WILLIAM “BILL” MATHISEN Business Development Manager Bill Mathisen, who joined KW PROPERTY Real Estate Broker forming his own company - MANAGEMENT & CONSULTING in July of 2011, is WEMCO Realty Services, and found his niche to be the Business Development Manager for the Southeast within the upper eastside Miami neighborhoods along Florida Region. Bill, a life-long resident of Miami, Biscayne Bay. graduated from Auburn University with a Bachelor of Since joining KW PROPERTY MANAGEMENT & Sciences degree in Secondary Education with an CONSULTING, Bill has used his expertise and emphasis on Speech Communication and a minor in experience developed within the residential real estate Political Science. After his graduation in 1977, Bill market to continue to expand KW PROPERTY joined Eastern Airlines and continued to grow with the MANAGEMENT & CONSULTING’s visibility and organization until 1989. reputation as a professional property management A Licensed Real Estate Agent, Bill joined The firm throughout Dade, Broward and Palm Beach Prudential Florida Realty company in south Coral counties. Gables where he specialized in high-end residential properties throughout Coral Gables and Coconut Contact Information:: Grove. In 1993, Bill moved to Kendar Realty, and Direct Line: (786) 363-2458 continued specializing in residential real estate along iPhone: (786) 218-5236 with office building property management and leasing Email: wmathisen@kwpropertymanagement.com in South Coral Gables. In 2004, Bill became a Licensed RHONDA VAIL Business Development ManagerRhonda Vail, who joined KW PROPERTY successfully designed and implemented a brandingMANAGEMENT & CONSULTING, in March of 2012, and marketing campaign for a local developer thatis the Business Development Manager for the Central increased the traffic and leasing ratios of theFlorida region. Rhonda, originally from Jacksonville, community.Florida, has over twenty years’ experience in theproperty management industry, and has had numerous Rhonda is a member of the Orlando Women inkey roles in the real estate management industry Business (OWIB) professional organization, theincluding Quality Control Specialist and Regional Orlando Breakfast Rotary Club, and the Mid-FloridaMarketing Director. chapter of the Community Association Institute (CAI).Rhonda, who relocated to the Orlando area recently, Contact Information:opened Jungle Management, a company dedicated to Direct Line: (407) 705-3236providing property audits, property inspections and iPhone: (407) 284-9681training services to the apartment industry, where she rvail@kwpropertymanagement.com - 10 -
  11. 11. Plan Now or Panic Later – Why Community Association Leaders Should Developa Plan for their Condominium, Co-Op or Homeowner’s Association.—By Andy Ashwal, Executive DirectorToday you woke up and decided you needed to get away association is left with a cycle of special assessments orfrom it all for a while so before you have time to deficits in operational funds.contemplate the potential impact you send an email to Obviously the outcome of every decision we make,your office conveying your need to “escape,” throw albeit personal or professional, impacts us and theclothes and toiletries into a bag, hop in your car, drive people around us twice — immediately and in theto the airport and ask to be put on the first flight with future. In order to minimize the immediate and futurean open seat. impact of the decisions made on behalf of theWith no particular destination, no place to sleep when association, the current Board of Directors should takeyou arrive wherever it is you are going, and potentially the time to devise a business plan that encompassesno opportunity to return because you have, with a single both. “When we begin working with an association,”email, cut off your financial flow, you are sitting at the states Regan Marock, Executive Director of Businessairport confident in your belief that you have just made Development for KW PROPERTY MANAGEMENT &a great decision, right? CONSULTING, “we start mapping out a plan thatThe probability of anyone waking up one morning and covers the first thirty days of our relationship, andsetting out on the course of action described above is project out to what needs to occur over a five yearvirtually unlikely, however; all too often, associations period.”embark on a very similar “trip” by failing to have a plan With this information in hand, garnered from thethat maps out the future needs of the community. financial statements and reserve study1, the Board ofIn order to create a viable business plan for their Directors, assisted by the management company, canassociation, the Board of Directors must understand the create a plan of action to fund the business plan. Ancore components that need to be considered: finances, association with a plan knows that four years down theasset and equipment management, regulations that may road the common area carpets are going to need to beimpact the functioning of the association, contingency replaced, the walls painted and the motor on theplanning for unexpected and unpreventable cooling tower fan will have reached its useful life. Thatoccurrences and the presence of an individual who can same association has also planned for the expense byexecute and manage the plan on their behalf. either (1) increasing the association fees, (2) fully fund the reserves in anticipation of the identified expensesIt is imperative that it be recognized that all of the (requires a membership vote)2, or (3) planning toconsiderations listed above have a direct impact on each institute a special one-time assessment to fund the costsother, and cannot be separated from the other of the expense.components. For instance, the association is currentlyexperiencing a deficit in operational funds today, and “It is imperative,” indicates Regan Marock, “that theputs off a planned maintenance program to the chiller Board of Directors has a strong team around them whoto defer the immediate costs. The association may find can help them create the business plan. It requiresitself in a situation where the chiller needs to be projecting the financial needs of the community,replaced five years earlier than previously planned as a understanding the useful life and expected life of theresult of the neglect or operational efficiency decreases physical components, and creating an operationalcausing stress on the system resulting in specific parts to routine that will allow for flexibility if there is a code orfail. This unexpected occurrence becomes a pressing regulatory requirement, even a natural disaster, thatissue that requires the Board of Directors to implement may expedite the projected time frame.”a special assessment to cover the replacement costs. The 1Eight states have mandated reserve requirements for condominium associations including Florida, California, Delaware, Hawaii, Nevada, Ohio, Virginia and Washington 2 Florida Statute 718.112(2)(f) - 11-
  12. 12. A Professional and Independent Approach to Management kwpropertymanagement.com Corporate Headquarters8200 NW 33rd Street, Ste. 300 • Miami, FL 33122 - 12-

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