Expect the Unexpected – The Tragic Balcony Story
We manage almost 100 associations, and many of these communities have kept their monthly dues intentionally low and now find themselves with low reserve balances, typically 20 to 30% of the fully funded reserve as detailed in their reserve study. These communities may...
The Impact of Inflation on Homeowner Associations
Inflation hurts many different people in society, particularly those on a fixed income. With core inflation surging past 8% in May, and a gallon of gas in California nearing $7, the talk on every news outlet is about it. But I have not heard any talk about the impact...
The Wealthy Effect and Raising Dues
The wealth effect is a behavioral economic theory suggesting that people spend more as the value of their assets rise. The idea is that consumers feel more financially secure and confident about their wealth when their homes or investment portfolios increase in value. They are made to feel richer, even if their income and fixed costs are the same as before.
Don’t Blame the Community Manager, Blame the Business Model of the Manager’s Company
We hear time and time again from disgruntled boards, the following complaints about their current association management company: The Community Manager does not respond to emails or calls quickly. The company assigns a different Community Manager every few years (or...
