Company VS Self Management
Florida condominiums can be managed by a Property Management Firm or Self-Managed. In both cases the Board is ultimately responsible
for management of the Association. The difference is whether the Property Management Firm or the Association employees report
directly to the Board.
Helps assure professional consultation, advice, guidance and management.
Requires less hands-on involvement by association’s Board
Provides a larger labor pool to meet association maintenance and
4. Eliminates Board’s need
to deal with staffing issues such as hiring, promotions, performance reviews, disciplinary actions, salary adjustments, bonuses,
Generally, provides more continuity through changes of property
Helps assure maintenance and administrative staff quality through
broader interviewing, candidate selection and training.
advantage of economies of scale in payroll processing and vendor negotiations.
8. Helps assure compliance with governing documents, Florida Statutes and government regulations.
Usually provides systems and tools for managing work orders, processing
rent/transfer applications, and providing community websites.
Better and more-professional financial and records management, generally through improved systems and controls.
Adds a monthly property management fee, staffing fees, and extra
service fees which increase total cost.
association income by directly receiving payment for member support/interface transactions such as delinquency notices, estoppels,
transfer fees, collection fees and attorney turnover fees.
Board flexibility to make decisions and control costs.
4. Is generally
more difficult for members to have their problems receive attention and get addressed. (They’re dealing with a large
“impersonal” company instead of their fellow association member.)
5. Management company is not as familiar with the property, local issues and history as a resident
6. More difficult to change
property management vendors or to switch to self-management.
Management Agreement Requirements
Per Florida Statute 718.3025(1), No written contract
between a party contracting to provide maintenance or management services and an association which contract provides for operation,
maintenance, or management of a condominium association or property serving the unit owners of a condominium shall be valid
or enforceable unless the contract:
(a) Specifies the services, obligations, and responsibilities of the party
contracting to provide maintenance or management services to the unit owners.
(b) Specifies those costs incurred
in the performance of those services, obligations, or responsibilities which are to be reimbursed by the association to the
party contracting to provide maintenance or management services.
(c) Provides an indication of how often each
service, obligation, or responsibility is to be performed, whether stated for each service, obligation, or responsibility
or in categories thereof.
(d) Specifies a minimum number of personnel to be employed by the party contracting
to provide maintenance or management services for the purpose of providing service to the association.
any financial or ownership interest which the developer, if the developer is in control of the association, holds with regard
to the party contracting to provide maintenance or management services. (f) Discloses
any financial or ownership interest a board member or any party providing maintenance or management services to the association
holds with the contracting party.
As stated in the Roles & Functions page of this website, "A condominium association
in Florida that has more than 10 units or a budget of $100,000 or greater is required to have a property manager
or management firm licensed by the Florida Department of Business and Professional Regulation."
In order to be licensed in the state of Florida, a Community Association Manager (CAM) must
receive education, pass a state exam, and be competent in the following areas:
- Condominium Law,
- Budgeting &
- Insurance, and
- Management & Maintenance.
The CAM's training and skill-set makes him uniquely qualified to address the complex issues associated
with condominium property management. The following information demonstrates the wide range of knowledge and skills
Human Resource Management
Self-managed condominiums, like Jupiter Bay, have their own employees, who are hired, paid
and supervised by the Association. Jupiter Bay has 9 employees comprised of a property manager, a receptionist,
2 administrators and 5 maintenance workers.
Professional management of the Association staff requires at least the following:
Handbook, providing information on the association's HR policies & procedures;
- Position Descriptions listing position
objectives, responsibilities, skill requirements, and job dimensions/scope;
- Employee performance appraisal process/forms
measuring quality/quantity of work, teamwork, job knowledge, initiative, interpersonal relations, health & safety compliance,
communication abilities, planning & organizing, problem analysis & decision making, and dependability;
- Payroll processing;
- Time and attendance recording;
- Staff work assignments;
- Regular staff meetings (generally weekly); and
- Employment interviewing/processing procedures
and standardized employment application.
The Forms page of this website provides templates for many of the HR and other required forms.
Various manual or automated systems help assure smooth operation of the Association:
order processing & aging system,
- Preventative maintenance programs/schedules,
- Lease processing systems
and tenant check-in procedures,
- Unit sales/purchases and transfer of responsibility procedures/forms, and
management & tracking process.
Many of the Association's financial procedures are included in the the Financial
Policies document. Some of the routine financial processing procedures include:
- Invoice review,
approval and posting,
- Contract review and approval,
- Monthly financial reporting,
- Monthly & annual
- Reserve schedule spreadsheet update,
- Generation of delinquency notices,
- Estoppal preparation,
account turnover to attorney for collection,
- Check request,
- Check signing,
- Coupon book generation
& mailing, and
- Annual budgeting.
Other required standard operating procedures and policies include:
- Unit alteration approval,
- Property inspection process,
- Website Policy and updating
- Hurricane Preparedness & Recovery Plan,
- Bulletin board notices posting procedure, and
preparation and publication process.
Besides financial records, the Association is responsible for maintaining several databases
- Unit owner roster, including name, address, phone number and email address;
permits issued, including condo unit number, name(s) of occupants, drivers license information, and automobile make,
model, color & registration information;
- Approved Unit alterations (filed by unit);
- Standard vendor list,
including phone number(s), address, contact(s), etc;
- Vendor master file of correspondence, invoices and contracts;
damage reports and insurance claims; and
- Unit sales and purchases.
The Association must maintain unit and limited common area alteration standards including:
- Window replacements,
- hurricane shutters,
- sound-absorbent under-laying
- patio painting
The Management Office is responsible for maintaining the Association's Official
A copy of the plans, permits, warranties, and other items provided by the developer.
of the Condominium Documents, including Declaration, Bylaws, Articles of Incorporation, and Rules/Regulations.
minutes of all meetings of the association, the board of administration, and the unit owners.
Roster of all
unit owners and their mailing addresses, unit identifications, voting certifications, telephone numbers, and the electronic
mailing addresses and facsimile numbers of unit owners consenting to receive notice by electronic transmission.
current insurance policies of the association and condominiums operated by the association.
A current copy
of any management agreement, lease, or other contract to which the association is a party or under which the association or
the unit owners have an obligation or responsibility.
Bills of sale or transfer for all property owned by the
Accounting records including, but are not limited to: records of all receipts and expenditures;
unit account records showing assessments, amount paid and balances; all audits, reviews, accounting statements, and financial
reports of the association or condominium; and all contracts for work to be performed and bids for work to be performed.
sign-in sheets, voting proxies, and all other papers relating to voting by unit owners.
All rental records
if the association is acting as agent for the rental of condominium units.
A copy of the Association’s
current Question and Answer Sheet.
All other records of the association not specifically included in the foregoing
which are related to the operation of the association.
A copy of the developer’s turnover inspection
report, attesting to required maintenance, useful life, and replacement costs of the common elements.
The Communications page of this website provides additional detail regarding these documents.
Compliance with Florida Employee-Related Laws
An article in the August 13th, 2012 publication of the Florida Sun Sentinel listed the following laws as applicable for
associations that have one or more employees:
- Fair Labor Standards
Act of 1938. This law establishes minimum wage, overtime, record-keeping and youth employment standards. This law
also prohibits wage discrimination based on sex as well as prohibits retaliation against employees who exercise
their rights under this Act.
- Occupational Safety and Health Act
of 1970. This law establishes minimum workplace safety standards for private sector employers and prohibits
retaliation against whistle-blowers.
- Fair Credit Reporting Act
of 1970. This law promotes the accuracy, fairness and privacy of information in the files of consumer reporting
agencies. This law prohibits employers from using a third party to obtain a consumer report on an applicant or employee
unless the individual gives authorization by signing a separate disclosure and consent form. This law also requires
an employer to provide the applicant with a copy of the consumer report and written summary of rights before denying
employment or taking any adverse action based in whole or in part on the consumer report.
- Employee Retirement Income Security Act of 1974. This law establishes minimum
standards for most voluntarily-established health and welfare benefit and pension plans in the private sector. This
law requires employers to provide plan participants with information about plan features and funding. This law also
imposes fiduciary responsibilities on those who manage and control plan assets and requires plans to establish a
grievance and appeals process.
- Immigration Reform and Control Act
of 1986. This law prohibits the employment of individuals not authorized to work in the U.S by requiring
employers to verify the identity and employment eligibility of all employees.
- Employee Polygraph Protection Act of 1988. This law prevents employers from requiring or requesting
employees to submit to lie detector tests either for pre-employment screening or during the course of
employment, with certain exceptions. This law also prohibits retaliation against an employee or applicant who refuses
to take a lie detector test.
- Uniformed Services Employment and
Reemployment Rights Act of 1994. This law protects civilian jobs and benefits for veterans and reservists.
This law requires employers to re-employ returning service members in the job that they would have attained had
they not been absent for military service with the same seniority, status and pay, as well as other rights and benefits
determined by seniority. This law also requires employers to make reasonable efforts to accommodate a disability
which has been incurred or aggravated during military service. Lastly, this law requires employers to make reasonable
efforts (such as training or retraining) to enable returning service members to refresh or upgrade their skills
to help them qualify for re-employment.
- Florida’s Minimum
Wage Act. This law establishes state minimum wage standards for employees.
- Florida’s Unemployment Compensation Law. This law provides monetary benefits to individuals
who are unemployed through no fault of their own. This law suggests that employers should establish standards of
conduct for employees and implement a 90-day probationary period for new hires.
- Florida Health Insurance Coverage Continuation Act. This law provides employees and covered
family members not covered by COBRA with a temporary extension of group health care coverage under certain circumstances.
The foregoing laws impact associations who have even just one employee. Naturally, the more employees an association
has, the more government regulation to which it will be subjected. Associations with two or more employees will be subject
to the National Labor Relations Act of 1935, the Immigration and Nationality Act of 1954 and the Florida’s Workers’
Compensation Law. If an association has fifteen or more employees, it will be subject to Title VII of the Civil Rights Act
of 1964 and the Americans with Disabilities Act of 1990 as well as the Florida Civil Rights Act of 1992.