A note from the SBAOR President By Bob Walsmith, Jr. President of the Santa Barbara Association of REALTORS®
2022 NAR Spring Meetings As I mentioned a few weeks ago, one of the great honors that I have as President of the Santa Barbara Association of Realtors (SBAOR) is to be able to attend various meetings during the year on behalf of our association and for our clients and neighbors. One such trip happened two weeks ago. I was in Washington DC for the National Association of Realtors (NAR) Spring meetings. It was similar to the meetings that I attended in Sacramento the week before, however the big difference was these meetings were on a national level and featured Realtors from all over the country. Like the CAR meetings in Sacramento, one of the main purposes of these meetings was to meet with our nationally elected officials and let them know the issues that our clients are facing locally that impact them with regards to home ownership, affordable housing, climate issues, lack of inventory, taxes, government restrictions, and the list goes on and on. I met, along with a few other local area Realtors, with the legislative assistant to our Congressman Salud Carbajal. We discussed the fact that because home prices are so high in California, how can he help assist, through possible new legislation, potential home owners with down payment assistance, incentives and other means of making the American dream of homeownership a reality for more and more people. It is so vitally important for our legislators to hear directly from us about the topics that mean so much to our clients and neighbors. It was also nice to meet with other Realtors from around the country and hear from them about what problems and issues that they are facing in their part of the country. It is also important to hear from them about how we can better serve our clients and what is working for them as well as what is not working so well. Topics such as low inventory, sky high prices, and rising interest rates are not only issues here in Santa Barbara, but throughout the country. Other seminars dealt with trying to find ways to build more houses, to alleviate the growing housing shortage, fair housing to try and eliminate discrimination when it comes to making sure that everyone, regardless of race, religion, etc., has an opportunity to buy a home. There were seminars on professionalism within our ranks, which means that each and every Realtor understands the right way to treat every person that we come across. The public deserves this and much more, because we, as Realtors, are dealing with the most important and expensive purchase that anyone can ever make. Another highly topical issue that was discussed had to do with how long home prices will rise and if they will even decline anytime soon. Lawrence Yun, NAR’s Chief Economist, believes that home prices will continue to rise until late 2023, however the rate at which they are rising will severely diminish. In other words, the “housing bubble” that some are predicting is probably not going to happen. Statistics like these are important to share with our clients and potential clients, to help educate them and guide them through the home buying and selling process.
HOA Homefront
Which Type of Management Is Best For YOUR HOA? By Kelly G. Richardson, Esq. CCAL Determining which type of management services is best for the HOA is a very important HOA board decision. Even the smallest associations need some form of professional management. What is a “Manager”? Managers oversee the association’s day to day operations, advising and informing the board and following 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. California requires no license 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 the risks and no reward. Volunteer-managed associations often find it difficult to find board candidates, 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 broken window on Tuesday evening are all part of the routine for a property manager. Property
management, when coupled with financial management, is called “full management.” Some associations choose to hire one company for financial management and another for property management services. Full management services normally cost significantly more than “financial-only” management. Off-site/On-site. Most associations are managed by persons working at a location at a management firm office. Some companies provide managers working at the association property, at a greater cost. However, on-site managers typically a higher level of service, which can offset the greater cost. Portfolio vs. General Manager. Portfolio managers simultaneously work for multiple associations, while general managers work for just one. Most associations cannot afford general managers. An important question to the portfolio manager is “how many other associations will you handle along with ours?” A lower management fee can result from a company overloading its managers. For some HOAs, cost is the only concern, but level of service, experience, and management credentials should also be considered. Ask questions and make sure your association understands what it is receiving. HOAs normally get what they pay for. In-house management. Larger associations may choose to hire their manager and staff as direct employees. This gives the association more control of its management at less cost than the rates charged by a management firm for the staff it provides. The drawback is the opposite side of the coin — the association takes on the responsibility of finding, screening, and supervising the manager and dealing with personnel issues. Choose the management style best servingthe community’s interests and needs, rather than automatically selecting thecheapest. Next week, Part II: Proposed management contracts.
I was impressed by the many Realtors that take time out of their careers and lives to volunteer on various committees to strengthen and enhance everyone’s way of life by insuring home ownership can be had by all Americans. NAR is a collection of over 1.2 million professionals whose sole purpose is to treat our clients and the public with the utmost respect, kindness, professionalism and respect.
Bob Walsmith, Jr. can be reached at 805-720-5362 or emailed at Bob@BobWalsmithJr.com
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SANTA BARBARA NEWS-PRESS REAL ESTATE
Kelly G. Richardson, Esq. is a Fellow of the College of Community Association Lawyers andPartnerof Richardson Ober DeNichilo LLP, a law firm known for community association advice. Submit questions to Kelly@rodllp.com. Past columns at www.HOAHomefront.com. All rights reserved®.
SUNDAY, MAY 22, 2022
