We Like This Manager, But Are They Qualified?

We Like This Manager, But Are They Qualified?

Previous columns addressed management options and contracts. After selecting the desired type of management services, how can a board know if a manager prospect is qualified? California managers are unregulated, with no required license or minimum education. Rental managers must have real estate broker licenses, but not HOA managers. There is a wide range of qualification and experience in the field, and credentials indicate experience and commitment to the management profession. Certified Common Interest Development Business and Professions Code 11502 allows one to be called a “Certified Common Interest Development Manager” after 30 class hours in certain topics from a professional association of common interest development managers. Section 11504 requires managers to annually disclose whether they qualify as “Certified” and prohibits managers from falsely claiming to be certified. While certification is not mandatory, the disclosure is. The organizations educating and credentialing California managers are the Institute of Real Estate Management (“IREM”); California Association of Community Managers (“CACM”), Community Association Manager International Certification Board (“CAMICB”), and the Community Associations Institute (“CAI“). IREM IREM is a national organization, with about 18,000 manager members, offering education and credentials regarding all forms of property management. Although its managers are mostly non-residential, over 300 of its members in California hold a residential management credential called the “Accredited Residential Manager (ARM)”. The ARM requires 44 class hours in either rental property management or CID management. The ARM does not qualify for “Certified” status in California. CACM CACM is a California organization, founded in 1991 by a group of veteran managers. 1,618 active managers currently hold CACM’s primary credential, the Certified Community Association Manager (“CCAM”). The...
Association Management: Associations Have Options

Association Management: Associations Have Options

Choosing management assistance is one of a board’s most important decisions. Even the smallest associations will benefit from some form of professional management. What is a “Manager”? Managers carry out the association’s day to day operations, advising and providing information to the board and carrying out its policies and instructions regarding association property and funds. A manager may be an unpaid volunteer or may be paid. The paid manager may be an association employee, a consultant, or an employee of an outside company. In California, no license is needed to manage HOAs. Volunteer management Many associations use volunteers for their management functions. The motivation for volunteer management is primarily to save cost. In volunteer management, volunteers place themselves in the role of an unpaid manager – with all of its risks and no reward. Volunteer managed associations often find it difficult to find candidates for the board, since directors work so much harder when they are also managers.  Financial management This involves collecting assessments, paying bills, and preparing monthly and annual financial reports, disclosures, and budgets. A financial manager typically does not visit the property. Management companies often prefer financial management because it is more predictable and less prone to the extra work of managing the property. Some accountants also offer financial management services. Associations struggling with the cost of full association management may wish to consider at least financial management. Property management Property management involves responsibility for keeping up the condition of the buildings and grounds and may include routine inspections for architectural violations, maintenance items and repair needs. The plumbing leak on a Sunday afternoon and the...
What Makes a Director Outstanding [Part 4] – Participation in Board Meetings

What Makes a Director Outstanding [Part 4] – Participation in Board Meetings

Productive and efficient meetings are not happenstance but are the result of committed and prepared volunteers, normally assisted by a great professional manager. To help bring about the best board meetings: Read the agenda packet Come to the meeting prepared, having already read the agenda and the supporting materials. The packet is provided in advance to prepare you to make the decisions presented. Reading it for the first time at the meeting disrespects the other directors, indicates lack of commitment, and delays meetings as one “gets up to speed.” Stay on topic A single director can derail discussions by moving on to a different topic before the current one is concluded. Politely remind colleagues when deliberations stray from the matter at hand. Talk to the board, not the audience Directors attend board meeting to deliberate with board colleagues, not the audience. Grandstanding by speaking to the audience disrespects other directors and encourages raucous meetings. Ask the manager for input on most motions The board’s most frequent protector under the Business Judgment Rule is the manager, so seek the manager’s input. The manager often has years of experience and training; take advantage of that background. If a manager’s input isn’t being sought, why have them in the meeting? Treat open forum as an important event and pay attention California law requires open forum at all membership meetings and open board meetings. That is the time for the board to listen to the community. Take notes and don’t interject or argue. Open forum reminds directors that they are there to serve their community, and often helps the board learn things they...