By Jo-Anne Oliveri, ireviloution intelligence, Brisbane, Australia

I recently read an article that stated a property management business is not profitable until it has around 500 properties (or units) under management. This is simply wrong.

The number of properties under management is not the only measure of a property management business’ growth and level of success. What’s more, until you stop focusing on this one number, your business will continue to suffer the loss of properties/units under management, higher-than-needed productivity levels, and low profit margins along your (very bumpy) path to growth.

This is because growing your business is not about this one number. It’s about what I call the critical measures.

Focusing only on the number of properties/units under management leads to:

• Business growth at all costs — this is a huge cost financially, emotionally, and physically because it drains both principals and the team
• Willingly discounting fees and managing properties regardless of their standard or location
• Lower-than-average weekly rent with a diverse range of properties/units under management
• Greatly diminished profits and asset value
• Possible business breakdown, loss of team and properties/units under management, and damage to your brand and reputation

If you are only focusing on the number of properties/units under management, believing that once you reach (say) 100 properties/units you will be covering costs, chances are you are suffering losses along the way. Chances are also high that at 100 properties/units under management, you will still not be achieving the income levels you expected. And so, once you reach your target, you will have to delay engaging further resources (for example, an extra team member) because you’re still not generating enough income. And so the vicious cycle of gain and loss continues.

A better path to property management success

So what should you be focusing on instead of just growing the number of properties/units under management? You focus on critical measures.

Critical measures determine the current flexibility or volatility of your property management business. By cross-checking your trust accounting software reports, you can identify your business’ average management fee, average distance-to-property ratio, average weekly rent, management splits, number of owners against properties under management, percentage of fixed-term leases, monthly disbursement methods and timing, and arrears management factors.

Evaluating these measures lets you know if your current operations are working to achieve your business goals and targets towards growth. Put simply, the strategic pathway to a successful, profitable, and highly reputable property management business is to know your own market and build your business in accordance with these critical measures.

The most critical measures are, in order, average management fee, average weekly rent, and then the number properties/units under management. In this instance, the reason to know number of properties/units under management is so you can strategically manage growth, retention, productivity, and profitability.

Most property management businesses target a number of new managements per month target and achieve it by discounting management fees. This is because the growth manager focuses on winning business at all costs. This means the properties/units under management are low value in comparison to the market average weekly rent. Moreover, the properties/units are likely to be scattered far and wide from your market area, which places increased strain on resources.

However, if you know your average weekly rent and average management fee figures, then the monthly income target can be strategically set.

Say your target is an additional income of $15,600 per month. You can reach that target if your average weekly rent is $300, your management fee is 10%, and you add 10 new properties/units under management per month:

$300 rent per week x 10 new properties/units x 10% x 52 weeks = $15,600 per month added to your annual income

However, this same monthly target could be achieved by adding just 6 properties/units per month:

$500 rent per week x 4 new properties/units x 10% x 52 weeks = $10,400 +

$600 rent per week x 2 properties/units x 10% x 52 weeks = $6,240 = $16,640 per month added to your annual income

In this scenario, the growth manager has achieved more than his or her monthly income target with only 6 properties/units, and he or she is also reducing the level of effort needed to manage those properties.

The bottom line to growing your property management business

The bottom line is this: When it comes to growing your property management business and planning for this growth, stop focusing only on the number of properties under management, and start focusing on strategically managing all of your business’ critical measures.

By Brooke McDonald, VSM Real Estate, St. Paul, MN

The unique nature of older properties makes renting them out a bit of a challenge. While newer homes and apartments boast modern conveniences, older properties sing charming songs from an earlier era. They just don’t build ‘em like that anymore, the old fogies mourn. There’s truth to it: People are truly not able to recreate the age and qualities of an older home, unless you take the expensive route and custom build and design a home.

The challenge of preparing old properties for market fits the analogy of a beauty pageant like a glove (an old-fashioned Grandma glove, no less). Not only is your contestant up against the fierce competition of the newly-remodeled-three-car-garage-whirlpool-tub crowd, but her charm and character need to make a fast impression.

Most real estate agents and property owners emphasize that the most important marketing strategy is to foresee common buyer objections and address concerns with renting an older property. What can you do to showcase your elderly gem’s best qualities and minimize any concerns from cautious renters?

The best of old and new

Old homes are stereotypically smelly and dark, with out-of-date appliances, peeling paint and dirty carpet. Property owners may be tempted to scrap it all and invest heavily in renovations. The key, however, is to retain the character and uniqueness your old property boasts but equip it for modern living as best you can. Conducting a deep clean, ensuring the working order of major home systems and making small renovations will go a long way to beautifying your old property.

• Make sure it looks good on the outside. Eliminate a new renter’s concern that the property is falling apart by making any big property renovations that must take place – like a new roof, chimney repairs, new windows, new siding, etc.

• Check mechanical systems (water supply lines, drain lines, heating system, circuits, etc.). Make sure everything’s working like it should so that renters do not worry that something will break in the middle of the night.

• Update ancient appliances. Ensure that everything works, and buy new appliances to replace near-death ones. Consider consulting a designer to make sure you choose appliances consistent with the home’s character.

• Freshen up the bathrooms and kitchen. These rooms sell a house. New coats of paint, new hardware on the cabinets, and perhaps new countertops or mirrors all go a long way in maintaining the charm and loveliness of the property. Nobody likes the look of kitchens or bathrooms that are in disrepair, dark or dingy. You can update these without a huge investment. For the showing, set out new towels, soap and flowers.

• Know the story. Time permitting, take a look at the history books, old newspaper articles and library archives. Having interesting tidbits on hand to share with your potential renters will help people value the property more. It’s not a bad idea to create some marketing materials specifically for telling the story. Often, older properties are located in areas with rich history and great ambiance.

• Have a property inspection done. Do this before renters show up in order to give relief to suspicious prospects who think a big bad issue will crop up at any moment.

Once you have your older property all spruced up, it’s time to show it to potential renters. What are the secrets to showing an older rental property? That’s the topic of, “How to Show Older Rental Properties,” my next blog post.

By Matt Donnelly, Buildium, Boston, MA

In many parts of the U.S., there are fewer rental units, and a greater percentage of Americans are renting than they were just a few years ago.

Those are two key findings contained in the latest research by the U.S. Census Bureau on the housing market. The national vacancy rate dropped from 8.4% to 7.4% between 2009-2011, while the number of households that rent grew from 34.1% to 35.4% during the same time. In many metro areas, renters are also spending a higher proportion of their household income on rent.

This development and the 12-year low in housing inventory have combined to create a market that would seem to favor landlords and property managers. But what’s curious in the Census data is that many metro areas (57) had gross rent decreases, while less than half as many metro areas (23) had gross rent increases. This seems to be evidence that property managers and landlords were keeping rents low in light of the recent economic recession, as many Americans struggled with job losses and underemployment.

What will be interesting to see is whether rents will begin to increase as more Americans begin to turn positive about the overall direction of the U.S. economy, as well as their personal economies.

Is now the right time for you to raise rents? Consider a few questions:

• Are there a lot of vacancies in your area? Given the market realities, your tenants will be more or less inclined to absorb a rent increase.
• Are you prepared to scare away prospective tenants that might have been a better fit for your past pricing? Raising the rent might price some quality tenants out of your pool of potential applicants.
• Are you prepared to possibly lose your current tenants? Your best tenants tend to have more options when it comes to finding another rental, while your other tenants may not have as many options and will be forced to absorb an increase. The cost of finding and screening quality tenants isn’t insignificant.
• How will you communicate a rent increase to your current tenants? Sometimes it’s more about how you communicate a rent increase. Make sure you acknowledge that you’re placing an additional financial burden on your tenants, and try to explain why the increase is needed.

Raising the rent is always a tricky prospect, and there’s no black-or-white answer. On one hand, there are the increased costs of running a business. On the other hand, there are the costs of finding and screening new tenants if your tenants move out due to a rent increase.

How are you navigating today’s economic realities as you consider your operating expenses and possible rent increases? What advice would you give to other property managers who are currently weighing their options?

By Matt Donnelly, Buildium, Boston, MA

A hotel is the traditional destination of choice for an individual or family going on vacation. But that seems to be changing. Today rental homes are all the rage, at least among U.S. travelers.

That’s the upshot of TripAdvisor’s fourth annual vacation rentals survey. Nearly half (49%) of those who responded to the survey plan to stay in a rental home in 2013 as opposed to a hotel, up 9% from 2011. “The survey results show that rental properties continue to be a very desirable accommodation option among U.S. travelers,” said Brooke Ferenscik, director of communications at TripAdvisor.

When asked why they were opting for a rental home instead of a hotel, 82% of respondents cited savings and last-minute deals as the two biggest reasons. In terms of benefits, those renting homes vs. hotels cited access to a full kitchen/laundry room (31%) and more living space (27%) as the two biggest advantages. And what do renters look for in a vacation home? A private beach (25%), amazing view (18%) and private pool (18%) topped the list.

So what does this all mean for you? Here are a few things to consider:

• Do you have any properties that might be suitable as vacation rentals? Note what prospective renters desire in a rental home.
• Think about staging or preparing the rental. Vacationers will be expecting a fully furnished and equipped home when they arrive.
• Will your rental be seasonal or year-round? In some markets it might make sense to lease the home during the off season in order to maximize your revenue stream.
• What will you charge? Note that vacationers want the feeling of a home away from home, but depending on the area, you may not be able to charge a premium price for the home. Consider what area hotels and even other rental homes charge. Also consider last-minute deals to fill vacancies.

What’s your experience with vacation rental homes? Please leave a comment below to continue the conversation.

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

From time to time, a property owner or possessor will give permission to others to use or rent out parts of her property and put things on it. A soda machine, a vending machine, a gas line, or even a pipe trestle. Those who use that land in this manner have a duty of care to third parties to prevent injury. The same duty that the possessor has.

Here is a fun fact pattern. The land possessor runs a horse farm. He rents out horses to be ridden on the property. A customer asks for a mild horse. The land possessor gives the customer what he believes to be a mild horse. The customer takes said horse out for a ride. Said horse is not mild. Said horse goes where it wants to go and takes the customer along with him. Injury ensues:

“Plaintiff and his wife rode under the trestle along the indicated road, with plaintiff’s horse in the lead. After proceeding about 400 feet to the north at a walk, plaintiff turned his head to the left and called to his wife. As he made this movement, plaintiff’s horse suddenly reeled about to the left and began racing back on the road toward the trestle, gaining speed as it went. Plaintiff attempted in vain to control or stop the horse by pulling back on the reins as hard as he could with both hands, but the horse kept going faster, passed plaintiff’s wife and ran around the bend in the road toward the trestle. Immediately before the accident and at a distance of some 8 to 10 feet from the trestle, plaintiff noticed some underhanging beams stretching over the traveled area at a height of about 6 feet. Plaintiff was then lying flat in the saddle, with his head held down as far to the right as he could get it and his left shoulder pointing upwards. His left shoulder and neck hit a stationary object such as the understructure of the pipe trestle, and plaintiff blacked out. When he regained consciousness he was lying immediately to the south of the pipe trestle, approximately 5 feet from the nearest substructure of the trestle and immediately south of the traveled area under the trestle. As a result of the accident, plaintiff is permanently paralyzed from the waist down.”*

Not what the customer asked for or intended. Setting aside the interesting discussion of the owner’s responsibilities regarding knowledge of his horses in making recommendations (i.e., knowledge of the propensities), there is a holding in here that helps landlords defend against property-related lawsuits.

The parties installing that pipe trestle were defendants to the case as well, owing the injured plaintiff the same duty of care regarding that pipe trestle as the possessor. It turned out that there was no duty — again, due to the no-longer-applicable classifications. But the principle will help the landlord identify the culpable party in any such lawsuit.

*Palmquist v. Mercer, 43 Cal. 2d 92, 97 (1954)

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in this blog submission do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

“The childish propensity to intermeddle was the characteristic which the [property possessor] should have taken reasonable precautions to guard against.”* Sometimes the courts come up with lyrical gems that get right to the heart of the matter. Through pages and pages of drivel, more often than not there is one pithy sentence which sums up the whole case and rule. I often wonder why the esteemed appellate justices do not just give us the facts of the case and the one pithy sentence. The books would be a lot smaller and cases a lot clearer.**

The above quote comes from a case which held both a tenant and the janitor the tenant retained liable for personal injuries to a three-year-old. The proof was that the tenant was in charge of a school. The tenant also, in the same building, housed families. (It was a hotel, and the tenant was the United States Navy). The tenant retained a janitorial service to clean said school on the weekends. Said janitorial service did so. Sometimes, they would stack the furniture — desks and chairs — in a pile. (To make cleaning the floor easier?) One weekend, a child was present in the school. Not a stretch, considering the building also contained living quarters. He climbed up on the furniture pile and promptly fell out the window. From the fourth floor.

The case had a lot to do with outdated and inapplicable classifications of the child — whether his activity of playing on the furniture made him a “trespasser.” But the case did have confirmation of the agency liability principle, which should help exonerate the tenant for a good deal of liability for the injuries this contractor arguably caused. Here it is: “One who carries on an activity on land on behalf of the owners in possession is subject to the same liability and enjoys the same immunity from liability, for bodily harm caused thereby to others as though he were said owner.”***  Translation: the folks hired to do work on the property are not immune from liability because the owner hired them. They are liable. If they are insolvent, or cannot be located, then maybe the owner will assume their liability. If the owner also had control over the activity (arguably always?), they may have some independent percentage of fault.

*Roberts v. Del Monte Properties Co., 111 Cal. App. 2d 69, 74, 77 (1952)

**And the lawyers less numerous?

***This quote is not as pithy as the one that opened this post, but it is arguably as important.

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in this blog submission do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.

A guest post by Sara Thompson, Gresham Sanitary Service, Gresham, Oregon

You have probably seen these homes on TV, or maybe you’ve seen them in person. People known as “hoarders” compulsively accumulate any and all kinds of things in their homes until it is packed to the ceilings with their every possession. Hoarders usually have an inability to let go of unnecessary items and clean their environment. In some cases, hoarders’ homes become dilapidated and dangerous. If you are managing such a property, this can present a serious problem, but with careful planning and consideration, your house can be habitable once again.

Dealing With a Hoarding Problem
People who become hoarders are in need of help, both with the situation at hand, and in terms of dealing with the disorder. Concerned family members and friends should have the hoarder examined by a doctor, and perhaps consult a therapist.

Helping the hoarder also involves completely cleaning out and organizing the home. Piles of clutter can make a home unlivable, creating both safety and sanitation issues. Thus, it’s critical for the home to be cleaned and organized before more problems arise. Possible issues involve fire (due to blocked exits, and huge amounts of paper and flammable objects) as well as the danger of illness from unsanitary conditions in the kitchen and bathroom.

Creating a Strategy
People who are involved with a hoarding cleanup project need to develop a strategy for cleaning the home, as many hoarding situations can become overwhelming. The best strategy is to break the cleanup into several projects, thus making the cleanup more doable. Here’s a list of jobs that will need to be accomplished in order to clean a hoarder’s home:

1. Assess the situation. Take a look at the overall clutter in the home and prioritize the work that needs to be done. It can be helpful to start in a small places like closets and bathrooms. When one small space is cleaned out quickly, it can motivate you to move on to bigger tasks.
2. Sanitize the worst areas first. Some hoarders seriously neglect sanitation in the bathroom and kitchen, which can lead to health hazards. These areas should be cleaned out and sanitized first, especially if there are areas with pet or human feces. While this is often a disgusting task, it can go rather quickly because you shouldn’t have to sift through items worth keeping. Most of what is in a bathroom, like half-empty shampoo bottles and expired toiletries can be trashed without consideration. The cleanup crew should bring plastic bags, mops, rubber gloves and disposable cleaning items like sponges and wipes to deal with the cleanup.
3. Do a major decluttering of useless objects. Some objects in the home may be useable if cleaned. Other items, like leftover mail, old newspapers and trash, must simply be disposed of. The junk items should be thrown out first before dealing with reusable items.
4. Get a drop box from a waste disposal company to help deal with major junk items. These large waste containers can be rented by the day at reasonable rates, depending on the time frame and size of the container. Many companies will pick up the full container and dispose of the waste once the job is done.
5. Once the home has been cleared of waste items and sanitized, sort through the other items. Make three piles for clothing and other items, and sort them into piles of what can be reused once cleaned, what should be given to charity, and what can be sold.

Creating a clean environment for a hoarder is a healing and healthy act. It’s a great gift to give a person who needs help. It can also be very rewarding for you as a property manager when the home has become rentable again.

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

One of my practice areas is insurance coverage work. I represent people and help businesses work out issues with insurance companies regarding whether a particular lawsuit, loss, or claim is covered by insurance. For many people and businesses, insurance is a must and coverage is a matter of everyday life and business practice. Drive a car, get insurance. Own a home, get homeowners insurance. Run a business, purchase a CGL policy. Get business interruption coverage.

A gray area is when we are not quite acting as a person or a business. We are volunteering. We are working selflessly for others. For the common good. Sometimes we are paid. Sometimes we are not. The soccer league, church council, and the HOA cannot get along without us. There are important decisions to be made for the soccer league, for the church, and for the condominium complex.

But those decisions have implications! People are affected by them. People are denied permission to do things. The HOA must act if it has information. If the collective “it” of the HOA knows of a dangerous condition, act it must, as we know. But what if only some of the directors are aware of the dangerous conditions? What if that director or directors do nothing? And what if someone gets hurt?

He gets sued! And he could, in California, be personally liable for not acting on that knowledge. Yes, personally liable, separate and apart from the HOA entity on which board he serves. In a recent post we talked about a case that holds the HOA to the same duty as a landlord. That same case also involved a cause of action within the lawsuit against an individual director for ordering the removal of the installed lights (which were put in to deter criminal activity) and then failing to report the criminal activity to the board. Ordinarily, the law does not make the individual director responsible for the board’s actions. That’s one point of having the board. But when the individual director personally participates in conduct which is a “tort,” he can be joined as a defendant.

So this director was sued. And the lawsuit survived legal challenges. I hope he or the board bought Directors and Officers liability insurance!

Meanwhile, California has enacted some legislation that mitigates against liability for certain classes of directors in these situations. And we’ll discuss them in the next couple of blog posts.

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in this blog submission do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.

A guest post by Brooke McDonald, Apple Valley Property Management, Minnesota

As we all know, outsourcing is a risk that can turn out to either be the best decision you ever made or the worst thought to ever cross your mind. When it comes to property management, you have to decide: Am I willing to put the care of my rental property into the hands of a stranger? Will the investment be worth it?

The stereotyped and semi-popular sitcom Outsourced didn’t last long on NBC, but it aired long enough to remind Americans of a poignant truth: Any kind of outsourcing involves some kind of learning curve, frustration, and a little bit of humor.

Thankfully, outsourcing your property management does not have to be as hairy as Todd Dempsy’s struggles to run his Indian call center, nor will it require working with an office on another continent (unless you hire a property management company in another country, which we don’t advise). No, local property management companies can, in fact, be an incredible benefit to you as a property owner, saving you time and money and providing real estate expertise that can protect you from legal trouble.

When you think of the word “outsourcing” in terms of property management, get rid of the negative connotations you often hear. Retrain your mind to hear the word “outsource” in conjunction with “property management” and think smart, wise, and worth it.

Outsourcing can be an outstanding decision

Doing all the management yourself is a heck of a lot of work for you, but it’s all in a day’s work for a property management company.

In addition, property management companies have all the structures and resources in place to do an excellent job. They usually employ software that an average person might not have – software that allows them to collect rent, perform background checks, and advertise listings.

Here’s what hiring a property manager can save you:

• Valuable time. Property management involves a lot of time communicating with tenants, marketing properties, advertising online and in high-traffic areas, and conducting showings.
• Worry about legal issues. Property management is a big responsibility and can result in lawsuits if tenant/landlord law is not followed correctly. No one wants lawsuits – and the experts you hire will understand the laws and know how to avoid them.
• Burdens about quality. A company that takes care of properties for a living can be trusted to go about things the right way. They also won’t be doing it on the side or in their spare time (as you might, especially if you have another day job along with caring for properties). It’s their main focus. You can relax knowing they have it all under control, rather than constantly thinking you might be missing something.
• Money (in the long run). Although there is a cost to property management, in the long run they will be doing needed maintenance as time progresses, preventing major blow-ups and ensuring that the property has all the updates it needs. Property managers also have the potential to make more money on properties because they understand local real estate, potentially charging higher rent, filling vacancies faster, and taking advantage of any special deals on maintenance and advertising they might have as professionals.

Common objections to giving up control

You may be saying, “But I really love this apartment, and I want to make sure it’s taken care of the way I want it to be taken care of.” Giving up control of your rental properties might feel a little bit like handing a newborn to a random hospital visitor. It matters to you! Nothing is more important to you as the owner than running a quality business, keeping tenants happy, and providing excellent upkeep of your properties so your tenants have a great experience.

Often, too, the cost that comes along with outsourcing property management makes people wrinkle their noses. But it’s possible to soothe your objections if you consider the overall advantages of hiring professionals – and hire the right ones.

Having confidence in your property management company

When considering people to hire, consider the recommendations of friends, as well as reviews and ratings of local companies. Also, sit down with the company and ask questions. Just as you’d screen a summer nanny or a house sitter, you want to feel confident and trust the person you choose.

Here are several helpful questions to ask, with some thoughts on the reason to ask them.

1. How often will you inspect the property? You want your property manager to get into the property on a frequent basis and ideally not charge extra for these visits. The more often they are able to check up on things, the better job they will be able to do.
2. How frequently will I receive reports? The more you are aware of how things are going with the property, the better. A good property manager should issue monthly reports – anything else is slightly suspicious.
3. What are your fees based on? Ensure that the fees are based on rent collected, not potential rent charged. Also ask exactly what services are included, and make sure everything you are looking for is listed.
4. How do you handle vacancies? Will they fill them ASAP? Will they charge you if a property sits unfilled?
5. What are their methods for handling repairs and maintenance? Some companies provide receipts and expense reports to owners to show all that they have done on the property. Many also detail the types of repairs they can and cannot do. It is helpful to know this up front. Also discuss their spending procedures, and when they need to receive permission to spend money on your property.

The caveat to all this is obviously that outsourcing will prove a crummy decision if you trust the wrong folks to do it. You want to hire an expert company who will do the job right.

But if you pick the right kind of people who can take your property and run with it, well, who wouldn’t outsource?

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

That’s not the quote, is it? No that’s right, it’s not. The quote is “With great power comes great responsibility.” Notwithstanding, we discussed the immunity provisions granted by the California Civil Code with respect to a volunteer director’s conduct that might be considered a “tort.” So what the legislature gives, it also gives duties. That’s not the quote either. It’s something about what the legislature gives it also takes away. My right hand does not know what the left is doing, either, by the way. But I digress. Are you still reading this?

The same Article of the Act that provides immunity for such volunteer directors also sets forth affirmative duties that all HOAs must follow. They can give themselves “more stringent” duties, but at a minimum, they must: 1. review operating accounts quarterly; 2. review reconciliation accounts of association reserves; 3. quarterly review reserve revenue and expenses; 4. review account statements from financial institutions in which reserve funds are placed; and 5. every quarter review income and expenses for operations and reserve accounts.

There is a subset of requirements regarding reserve accounts, in place to protect the maintenance of the complex and its maintenance areas. Who can sign checks, how much has to be in the reserve, what it can be used for. But there is another affirmative duty that dovetails into the theme of our last two blog entries and indeed, a lot of these entries regarding landlords in general. That is the duty to inspect.

“At least once every three years” the HOA board is to have the premises inspected, visually, in a reasonably competent and diligent manner. This is in conjunction with keeping the right amount of funds in the reserve accounts. But included in all of these inspections are requirements of identifying costs of repairs, for the “repair, replacement, restoration, or maintenance” of any identified repair needs.

In essence, the HOA is required to document what needs work, what arguably could later cause injury or property damage, how much it will cost to fix, and even estimate how much longer such conditions will exist (useful life). This would be great evidence in a lawsuit. Sounds like a subpoena for documents to me. So if folks were hoping for the protections of immunity without corresponding responsibilities, they might have been reminded of another quote: “Be careful what you wish for, you just might get it.” That quote is right. I’m pretty sure of it.

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in this blog submission do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.