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Property
Management | Association Administration
| Financial Management
Generally, condominium association management is responsible for common areas, grounds maintenance, resident and owner relations, supervision of staff, pool maintenance, coordination of maintenance projects with contractors, and property security. While the management company does not (in most cases) provide rental services, it must coordinate its operation and maintenance responsibilities with homeowners and rental agents. Our hospitality management experience gives OPMC an especially strong appreciation of the importance of that coordination and the impact of professional management and maintenance on owners and guests. OPMC maintenance goals for managed properties include: cost effective smooth daily operations; efficient use and replacement of equipment; buildings and grounds in good condition; compliance with local safety codes; increased investment values, and positive homeowner attitudes toward their association. Seasonal & Preventive Maintenance To preserve, protect and enhance the quality of life for associations it manages, OPMC implements seasonal and long-term maintenance programs, along with an action form (work order) based maintenance program for demand maintenance items that arise on a day-to-day basis. OPMC tracks maintenance programs with spreadsheet breakdown for maintenance and capital budgets, and ties into its existing accounting system for tracking actual maintenance costs. This type of systematic record keeping and scheduled preventive maintenance is especially important for seasonal resort properties with relatively short term rentals and vacation's planned around holidays and vacations that could be spoiled by delayed repairs. Our system records maintenance intervals, and schedules for both short range and long range maintenance needs. Compliance with regulatory requirements for periodic maintenance of fire suppression and alarm systems, and heating equipment must be specifically recorded and tracked. A formal schedule must be followed for common elements maintenance, painting, plumbing, and electrical inspections. If not already in place, maintenance intervals will be established and dated checklists kept for preventive maintenance. Service contract status is updated for some association Board's as frequently as quarterly, to ensure proper, timely maintenance is performed on equipment. Employee & Contractor Supervision An OPMC principal will initially be assigned to directly supervise all employees and contractors. OPMC meets with and evaluates present personnel and contractors immediately upon assuming management responsibilities. This assures strong, coordinated management-employee and management-contractor relations and a clear channel of authority. Swimming Pools Maintenance & Operation
Swimming pools are an area of special concern to management of resort properties. Substandard pool maintenance has an adverse impact on owner investment and the property's rental performance and it certainly detracts significantly from owner's and guest's vacations. Ocean Property Management Corporation provides a certified pool operator as part of its management services and a trained staff to maintain pools and pool equipment. OPMC supervises in house maintenance that performs opening, daily service, and closes the pools. OPMC evaluates all options, including contract pool services to determine the most cost-effective alternative to managing swimming pool facilities. OPMC operates over twenty pools and spas at managed properties. Contractor Services For some maintenance functions, it may be in the best interest of an Association to contract with outside vendors for services and/or products. Reasons for employing outside contractors include specialized expertise, certifications and licensing, time constraints, labor requirements and cost effectiveness. OPMC reviews existing service contracts, establishes and/or updates contract specifications, solicits bid requests, negotiates contracts and evaluates proposals received to provide Board members with knowledge and information to make educated decisions. OPMC monitors work in progress and inspects work to ensure completion according to specification. Emergency Procedures OPMC reviews emergency procedures. If written plans are in place, OPMC will provide written guidelines and work with the Board of Directors to establish emergency procedures. Post-storm Inspections In conjunction with establishing emergency procedures and storm preparedness activities, OPMC performs post-storm property inspections. Effective management must have experience and understanding of community management, familiarity with association governing documents and state statutes, court decisions, and current trends affecting community associations. OPMC will administer services, programs and operations, implement decisions of the Board, and provide information, training and leadership to the Board as it sets policies and makes decisions.
Owner Services Administrator Ocean Property Management assigns a dedicated Owner Services Administrator to handle all owner services and owner dues accounts, administrative functions, coordinates communications. Ocean Property Management evaluates existing procedures; implements operating procedures currently in place at other OPM-managed condominiums as necessary to improve efficiency and control costs; and works with the Board of Directors to coordinate a smooth management transfer, integrating programs already in place with some of OPMC's hospitality management practices. Collecting Dues & Assessments Condominium fees, assessments and other receivables are maintained. OPMC will administer collection policies established by the Board, and assist in creation and implementation if one does not exist. In addition, OPMC prepares monthly delinquency reports, and maintains owner correspondence files and mailing lists. Homeowner Communications / Action Forms OPMC provides several mechanisms for receiving and responding to owner's concerns including action forms, phone and fax service and e-mail contact with the management office. Board Meetings and Decision Making The management company will attend all Board meetings and assist the Board in effective decision-making, and in the business, governance and community functions. OPMC perceives its role much like the property's attorney or accountant, providing operating advice and guidance and representing the property in dealings with local government officials and agencies, insurers, inspectors and emergency service providers. Rules Development OPMC will be involved with rules development if necessary. Rules and regulations are designed to promote harmonious living and maintain, preserve and enhance the property values and assets of the association. We provide practical, technical and administrative assistance to the Board in developing and enforcing rules. Insurance & Risk Management Insurance planning and administration, including solicitation of insurance proposals is part of the management services package. OPMC reviews existing coverage, makes recommendations for cost-effective improvement of coverage, solicits multiple bids for the insurance package, and also makes recommendations that minimize the unfavorable effects of accidental losses on the association. Administrative Services OPMC handles the day-to-day requests for proof-of-insurance certificates, homeowners association resale certificates, and provides information from the association governing documents. Bookkeeping and Payroll Services OPMC provides bookkeeping, data entry, database management and employee payroll services as part of the management fee. Additional Homeowner Services OPMC also provides owner services beyond traditional property management including contractor supervision, vendor services, and volume buying of furnishings, fixtures and equipment for individually owned units under separate agreement between the association and the management company.
Ocean Property Management utilizes computerized accounting, bookkeeping and payroll functions as part of an effective financial control and reporting system. An experienced OPMC bookkeeper will be assigned on a dedicated basis to record receivables and payables, manage invoicing, and pay vendors on a continuing basis. Accounting is complete and bills are paid in a timely manner. All payables are properly aged and bills paid to take advantage of vendor credit terms. Management must be concerned with operating quality, cost and accountability. Expenses should be planned and budgeted on an annual basis and maintained at a relatively constant level on a year-to-year basis. The management company is spending homeowner's money so there is an obligation to aggressively control costs and provide an accurate, detailed and timely accounting of expenses to owners and the condominium association. Financial reports provide key information to the management company and Board needed to make appropriate decisions, and enable the Board and management to control the association's financial operations. Budgets OPMC develops budgets for managed associations by combining zero-based budgeting method with historical trend analysis. This combination requires analysis of actual expenses, not just acceptance of numbers at face value, and leads to meaningful, effective budgeting and cash flow projection. Financial Record Keeping & Reporting Ocean Property Management Corporation's accounting system produces detailed records of labor and supply costs and allocates expenditures to appropriate expense and billing accounts. These comprehensive income and expense reports, variance reports comparing budgeted and actual expenses, and year to year comparisons of operating results are more than financial reports. They are management tools used both by the condominium's directors and by Ocean Property Management to operate the property in a cost-effective manner. All reports are reviewed at the highest level in the OPMC organization because of the importance we place in this function. Pro-active operating controls, not an after-the-fact explanation of budget overruns, should be a priority for any effective management company. Controls OPMC's computerized accounting system tracks operating expenses based on purchase orders, competitive bidding on all significant purchases, detailed labor time sheets, and continuously updated reporting of open invoices and vendor's bills. The system includes carefully developed maintenance accounting that is particularly important when managing condominium properties with seasonal shifts in expenditures. OPMC employs numerous cost controls at managed properties. Competitive bidding, purchase orders and pre-authorized purchasing assures control of purchasing and maintenance supply inventory. Maintenance labor, materials, and services are tracked by job or work order with supporting time sheets and purchase orders. Payroll Services An OPMC payroll specialist will provide all payroll services including timekeeping, paychecks, internal payroll records and state and federal payroll reporting. The payroll specialist assures that a proper detailed accounting is maintained of hours worked and work performed. Those records are available at any time for audit by the condominium association directors or their representative appointed to review labor expenses. Investment Management OPMC will administer an investment management program, in conjunction with the Association Board of Directors that protects the investment principal while maximizing return on investment. OPMC has negotiated no fee checking accounts, and preferred interest rates for reserve accounts with local banks. Homeowner dues are deposited directly into money market accounts, then funds are draw from the money market account into an operating account to pay bills for the purpose of generating interest income. Reserve Study and Replacement Funds OPMC will solicit proposals for a reserve study. A reserve study determines the remaining useful life of each item for which the association has long term replacement responsibility, and the projected cost for replacement. Reserve studies are invaluable tools needed for Associations to determine the adequacy of reserve contributions. The reserve study provides the Association with information necessary to assist in determining replacement fund requirements. In most cases, replacement funding is required in the governing documents. OPMC recommends and assists boards with an annual review of this aspect of the association's budget. Long Term Planning In the interim, OPMC will assess the condition and estimated life of the mechanical components, such as HVAC systems, elevators, electrical systems, smoke detectors, roof systems, exterior walls and pool equipment, in conjunction with the reserve study. Capital items are purchased based on periodic inspection reports supplied to the condominium associations' directors, as well as capital replacement and deferred maintenance studies. Written estimates and competitive bids, based on properly prepared specifications are required prior to purchasing furnishings, fixtures and equipment and contractor's services. Deferred Maintenance OPMC evaluates deferred maintenance needs for a property. Often, reserve and replacement reports do not take into account items such as building painting, waterproofing and caulking. These projects are often costly and are not included in the reserve study. Associations are prudent to set aside monthly and/or annual contributions to fund these projects. Energy / Utilities OPMC will evaluate and recommend power supplier contracts if not already in place, and will evaluate the current contract if one exists. Initiation of power supplier contracts has reduced utility expenses at other OPMC managed associations by several thousand dollars annually. OPMC will assist the Association Board with the selection of professionals, including legal counsel, accountants, engineers, that meet the established criteria and are consistent with the Board's philosophy toward such professionals. Knowledge and understanding of community association, familiarity with trends affecting community associations, industry trade association involvement and professional certifications are important for professionals and management alike. Legal counsel should have familiarity with condominium law, and be affiliated with a firm with experience in matters pertaining to real estate, delinquency collections and alternative dispute resolution. OPMC works with the association's accounting firm to perform the year-end audit and tax return. OPMC will solicit proposals for accountants if necessary. OPMC minimizes accounting costs by providing financial records in a format compatible with many CPA firms. OPMC handles the compliance issues and annual inspections, certifications and licensing requirements for associations. OPMC completes necessary paperwork, schedules inspections and accompanies local and state inspectors as necessary. Every property and association is unique. Meetings with Association Board members, discussing concerns, association objectives and ongoing issues are important in developing a management arrangement. Ocean Property Management Corporation recommends the creation of a joint owner-management advisory committee to assist with management transition, review and evaluate procedures and policies, and determine and establish the most effective and efficient systems for managing the association and the facility. Ocean Property Management Corporation must be listed as an "also named insured" on all applicable insurance policies covering the condominium properties, facilities and grounds, and employees. Management turnover is facilitated by working with a turnover checklist to ensure comprehensive transition to property management. We encourage you to find more value for the Association dollar. In most cases, the management fees are significantly offset by realized cost savings, in improved services to homeowners, in improved property condition, and in Board performance as a policy-making body, addressing essential issues that affect the association, as opposed to dealing with day-to-day operation. Management fees for condominium association administration, asset management and property management vary based upon size of association, and services required by the association officers. On-site management needs, scope of maintenance, association size, owner services administration, and employee expenses are additional variable costs that could affect management fees. After an initial consultation meeting between OPMC partners and your Board, a management services proposal, including fees, can be developed. |
