Condominium boards often hire community association managers to help manage and oversee their association’s affairs. However, since community association managers often handle critical and complex matters, it’s important to choose the right one. The first step to confirming the qualifications and experience of a community association manager is to make sure they are properly licensed.
In Florida, community association managers must be licensed to perform specific functions for condominium associations with more than 10 units or with an annual budget of over $100,000. Importantly, a 2014 statutory amendment expanded the types of functions that can only be provided by a licensed community association manager. In addition to controlling or disbursing association funds, preparing financial documents and assisting in the meeting process, a license is required if a community association manager:
- Determines the number of days required for statutory notices
- Determines and collects amounts due to the association before the filing of a lawsuit
- Calculates the votes required for a quorum or to approve a proposition or amendment
- Completes forms that have been created by statute or by a state agency
- Drafts meeting notices and agendas
- Calculates, prepares and responds to requests for assessment and estoppel certificates
- Negotiates contracts
- Drafts pre-arbitration demands
- Coordinates or performs maintenance and other related routine association services
- Oversees compliance with the association’s governing documents and the requirements of law
New professional standards were placed upon Florida community association managers in 2014. For example, community association managers cannot charge unreasonable or excessive fees and must account for all funds. Community association managers, acting as an agent on behalf of the association, must also discharge their duties:
- Loyally
- Skillfully
- Diligently
- Honestly
- Fairly
- In good faith
- With care and full disclosure to the association.
To satisfy their fiduciary obligation, condominium boards must make an effort to hire a qualified community association manager. Beyond confirming that a community association manager is properly licensed, board members must make sure that the individual has a thorough command of all the administrative and financial tasks associated with the job, strong communication skills and absolute integrity. Multiple candidates should be interviewed and references should be checked.
Setnor Byer Insurance & Risk’s Condominium Program provides clients with access to various risk management services, such as Setnor Byer’s Risk Management Group and Unit Owners’ Report Line, as well as our affiliate’s online Board Member Education, which has been approved by the Division of Florida Condominiums, Timeshares, and Mobile Homes to satisfy Florida’s new board member education training.
If you would like to discuss how Setnor Byer Insurance & Risk can serve you and your condominium association, please contact us.
0 Comments