When a stairway collapsed in North Myrtle Beach, it took two adults and two children down with it. Luckily, both children were okay. However, one of the adults was taken to the hospital. What would you do in this situation?
Out of state developers such as Meritage Homes from Arizona and Tri Pointe Homes from California are buying land in Durham, NC to build new housing and communities. How do you feel about this?
After a fire damages apartments and condos in Fayetteville, NC at Stewarts Creek Condominiums, people are trying to find a new place to live. Luckily, all tenants and pets were rescued and are safe. Click to read more.
As a professional condominium or HOA manager or community leader, it's essential to stay informed about the latest trends and challenges that impact your community. One significant concern that has emerged in 2023 is the rising property casualty insurance rates. In this blog post, we will explore the reasons behind these increases, discuss the extent to which rates are rising, and provide best practices to help your association mitigate the impact. We strongly advise relying on a qualified insurance professionals for specific guidance tailored to your association's unique circumstances.
Understanding the Reasons for Increasing Rates:
Several factors contribute to the upward trajectory of property casualty insurance rates in 2023. These include:
1. Natural Disasters: Climate change has intensified the frequency and severity of natural disasters, leading to an increase in insurance claims related to property damage. Severe storms, wildfires, and flooding events strain insurance providers, prompting them to adjust rates to maintain financial stability.
2. Inflation and Rising Construction Costs: Inflationary pressures and escalating construction costs have significantly impacted insurance premiums. The costs associated with repairing or rebuilding damaged properties have surged, consequently driving insurance rates upward.
3. Legal and Liability Concerns: The legal landscape surrounding liability claims has become increasingly complex. Growing litigation trends and higher settlements have elevated insurers' risks, leading to higher premiums for policyholders.
The Extent of Rate Increases:
The magnitude of rate increases can vary depending on various factors such as location, property type, claims history, and coverage limits. However, it is not uncommon for property casualty insurance rates to rise by double-digit percentages in 2023. Some associations, even with no recent claims, have reported premium increases of 20% or more during policy renewals. These significant jumps can strain association budgets and require proactive measures to minimize the financial impact.
Best Practices to Mitigate Higher Rates:
While it may be challenging to avoid rising property casualty insurance rates entirely, there are several best practices your association can implement to minimize the impact:
1. Risk Management and Loss Prevention: Prioritize proactive risk management practices to reduce the likelihood of claims and property damage. Implement preventive maintenance programs, enforce safety protocols, and engage with insurance professionals to conduct regular risk assessments.
2. Review and Update Insurance Policies: Work closely with insurance professionals to review your association's insurance policies annually. Ensure your coverage adequately reflects the current value of your property and aligns with your risk profile. Consider higher deductibles or alternative risk transfer mechanisms, such as captive insurance or self-insurance, if appropriate for your association's financial position. Also, consult your attorney to make sure the association understands its duty based on governing documents and laws related to insurance.
3. Seek Competitive Bids: Regularly solicit competitive bids from multiple insurance providers to ensure you are obtaining the most favorable rates and terms available in the market. Engage insurance brokers or agents who specialize in community association insurance to navigate complex policy options effectively.
4. Loss History Management: Develop a comprehensive loss history report and demonstrate your association's commitment to risk management. Highlight steps taken to address any previous claims or property damage and show insurers that your association is proactive in mitigating future risks.
5. Engage with Insurance Professionals: Establish a collaborative relationship with insurance professionals who specialize in community association insurance. Their expertise and guidance can help navigate policy complexities, negotiate favorable terms, and identify risk mitigation strategies specific to your association's needs.
The rising property casualty insurance rates in 2023 pose a significant challenge for condominium associations. Understanding the underlying reasons for these increases, monitoring the extent of rate jumps, and implementing best practices can help associations mitigate the impact on their budgets. Remember, seeking guidance from insurance professionals tailored to your association's unique circumstances is crucial for making informed decisions and safeguarding your community's financial well-being.
September officially ushers in the fall season. It’s time to gather the board and make plans for the coming months. Fall is a great time for community holiday centered events. If your community is in the cold part of the country, the coming months can bring cold temperatures.
Here is a task list every HOA should implement while the weather is still mild.
1. Maintenance & Repairs: Assess the common area buildings and exterior property needed after summer repairs and maintenance. It’s important for the board to start initiating work orders for any needed repairs on the exterior surfaces of the community.
2. Plan Fall and Winter Lawn Maintenance with Landscape Vendor: The mowing schedule will change during the fall and winter. Summer season flowers or shrubs may need to be replaced. Mulch and other ground maintenance may need to be put in place for the fall season. In the off-season residents, visitors, realtors, and prospective buyers will notice an unkept community during the winter. It is important for the HOA board to have new schedules and changes put in place until spring rolls around.
3. Fall and Winter Amenities Preparation: Swimming pools, golf courses, playgrounds, and other amenities need to be prepared for the cooler months. If your HOA closes the pool during extreme snow or cold, it is important to schedule this with your pool company. If your HOA is shortening hours for outdoor recreation areas due to shorter daylight hours, it is important to notify residents of changes and closings.
4. Plan for Fall and Holiday Activities: Add a planning session to your board meeting agenda for holiday events, fall festivals, holiday parties, and community gatherings. Plan well in advance to give the community plenty of time to add events to their busy holiday schedule. Consider community entrance decorations and expenditures for holiday related costs. Notify residents in advance of any specific rules pertaining to holiday gatherings.
5. Community Safety Changes During Fall and Winter: If your community has a security vendor or security guard, the hours may change due to shorter days. During the holidays there may be visitors parking throughout the streets of the community. Designate parking for community events. Assess streetlights in the community, community emergency lighting, community entrance lighting, and lighting around the common areas and amenities. Notify residents of any policies regarding property decorations and lighting. It is important to be aware of holiday decoration safety issues around Halloween and Christmas.
6. End of Year Budgeting: As things begin to slow and the fiscal year comes to an end, preparing for the New Year is essential. HOA boards should have next year’s important items on the agenda and begin advance planning for large additions, community expenditures or major projects slated for the spring season.
Fall brings excitement leading up to the holidays. HOAs should always put safety first and make this time of year enjoyable for all residents. We hope this task list will help your association or management team provide a safe holiday season for everyone in the community.
HOA Community Emergency Preparedness
4 Phases of Emergency Preparedness in the event of a hurricane or other natural disaster.
We are in the middle of the official hurricane season for 2023. Though we have not had a storm yet, we know how quickly things can change and how fast an emergency can arise.
For the safety of community members, HOAs should implement an emergency preparedness plan for the community.
Here are 4 phases of emergency preparedness to help the community.
Emergency Planning Phase: This plan may not be needed, but in the event of an emergency, residents should have a plan to effectively exit the community. “If the emergency officials call for an evacuation, then evacuate,” Paul K Mengert C.E.O. Association Management Group. If there are new residents, they could benefit from a map of the community with entrance and exit points noted. In this plan, providing residents with a list of local shelters is essential. Let’s not forget shelters specific for the elderly, disabled, and pets.
Initial aftermath Assessment Phase: It is important for leaders and community members to remain in place and stay safe until emergency officials give the clear to go out. Residents may be without power for a few days. During this time emergency management officials, power company workers, and others may be in the community assessing damage and safety issues. Power trucks may be working to restore power. During the aftermath of an emergency, it is important to follow instructions from officials.
Emergency Response Phase: How quickly will your community get help in an emergency? If a disaster should occur, does your HOA Board have a designated person to coordinate with local police, fire, and emergency officials to get relief into the community? If your local police and fire department offers safety education, it would be helpful to have them come to an open association meeting and speak to the attendees about safety protocol in the event of a community emergency.
Community Recovery Phase: Following a disaster, rapid response is important. This may include having agencies readily available that provide food, water, and shelter to residents, and help repair damaged homes. How can the HOA board help the community recover from a disaster? Does your HOA have resources set aside for financial assistance? This may include immediate cleanup and repair of common areas, assistance to pay for tree removal companies to help in getting up downed trees, and a cleanup crew to assist with debris on community streets and sidewalks following a storm or emergency.
Hurricane season does not end officially until November 30, 2023. It is not too late to create an emergency response plan in your HOA.
“Before a storm arrives, I want to encourage all community leaders and homeowners to make their own emergency kit. Most experts encourage you to have one or two days of water on hand. At Association Management Group we have worked hard to develop approaches to administrative, fiscal, and physical problems.” Paul Mengert, C.E.O of Association Management Group
Household Emergency Disaster Kit Checklist
Water (one gallon per person per day for several days, for drinking and sanitation)
Food (at least a several-day supply of non-perishable food)
Battery-powered radio
Flashlight
First aid kit
Extra batteries
Moist towelettes, garbage bags, and plastic ties (for personal sanitation)
Manual can opener (for food)
Nonperishable foods
Cell phone with chargers and a backup battery
You may download a complete checklist at https://www.ready.gov/kit
When a condo or apartment has a no pet policy, we all understand that support animals are accepted anyways. However, emotional support animals are a grey area. Working service animals are accepted everywhere, but with lots of people qualifying for an ESA (emtional support animal), should these animals be accepted into public areas such as community pools and areas?
After an HOA in Raleigh, NC tried to force a family to remove solar panels from their home, despite the rules and regulations stating nothing about solar panels, the family went into a four year lawsuit. Read more to discover the NC Supreme Court decision.
In Charlotte, NC, homeowners have been in controversy over banning street parking. While some are okay with the enforcement of no street parking for safety reasons, others argue that it leaves no room for visitors or families with multiple drivers. What do you think? Should street parking be banned?
Association Management Group (AMG) recently awarded $1000 scholarships to five students in the company’s service area of North Carolina and South Carolina. The program, which grew from four to five scholarships this year and memorializes the lives and contributions of exceptional AMG individuals, provides education funds to outstanding scholars who are on the brink of their academic journeys and are committed to strong communities.
Open to the families of residents and vendors of AMG properties, as well as AMG employees, the fourth annual AMG College Scholarship Program selected the honorees based on short videos the students produced highlighting what community means to them.“We are so proud of this year’s applicants, and all those who came before them,” said AMG Vice-President and Scholarship Program Chair May Gayle Mengert. “Our company’s mission is to help create safe, harmonious, attractive communities through effective homeowner association governance. A big part of our work is empowering volunteer association boards–community people–with smart tools and strategies for ensuring their neighborhoods feel like home. It is gratifying and inspiring to hear why their communities matter to our youth, and how they are dedicated to strengthening them.”
The 2023-2024 AMG College Scholarship Program winners are:
Alexa Fields was awarded the Corey Flynt Scholarship. Corey was the son of AMG’s President Dacy Cavicchia and brother to both AMG’s Charlotte Director of Operations, Danielle Rudisill and Special Projects Coordinator, Cassie Kutay.
Carlyn Whitehead received the Tommy Badgett Scholarship, named in memory of a long-term AMG employee and friend who passed away in January 2021.
Sydney Pugh was honored with the Billie Butler Scholarship, which celebrates Butler’s twenty-plus years of service to AMG clients in the Charlotte area.
Joey Chaney was awarded the Ron Erickson Scholarship, to honor the life and accomplishments of the late world-class financial planning professional and role model.
Kritika Sharma won the Rea Tinsley Scholarship, The People’s Choice Award, with 192 Likes. Tinsley, who passed away in March 2022, was a cherished member of the AMG family and Director of Operations in Greenville, SC.
About AMG: AMG is a professional community association management company dedicated to building effective community associations. AMG guides and assists executive boards to help protect the association's interests, enhance the lives of community members, and improve the property values in the community. With offices throughout the Carolinas in Greensboro, Winston-Salem, Charlotte, and Raleigh, NC, and Greenville and Aiken, SC, AMG is a knowledgeable partner in enforcing community governing documents with a proven set of processes and techniques, and supporting communities with a broad range of services which can be tailored to individual community needs. Association Management Group, Inc. is a locally Accredited Business by the BBB and is a nationally Accredited Association Management Company (AAMC) by the Community Associations Institute. For more about AMG, visit www.amgworld.com
Many Americans live in common-interest communities, such as homeowner’s associations (HOAs) and condominium associations. In fact, in 2022, about 26% of Americans lived in HOAs alone. That means thousands of communities nationwide designed to govern themselves and enhance home value for their residents.
While most associations have a Board of volunteers that govern the community, sometimes those Boards are not enough. Your community may need an HOA management company to reach its full potential.
But what are HOA management companies, and what do they do?
In the rest of this guide, we will answer those important questions. So, let’s get started talking about the role of an HOA management company.
What is an HOA Management Company?
HOA management companies specialize in providing management and administrative services to HOAs. They act as an objective third party, which helps them in their management role. HOA managers assist the HOA Board in running the community by managing various aspects of its day-to-day operations, communication, and financial management.
There are a lot of benefits to collaborating with an HOA management company. These include the following.
Expertise: HOA management companies are staffed with professionals with the experience and expertise to bring the most value to an HOA community. They will also understand the industry standards and local regulations, which will help them ensure that the community remains well-managed and compliant.
Savings: An HOA management company can save the Board valuable time and resources, allowing them to focus on strategic decision-making and long-term planning.
Community improvement: Efficiently managing the community and implementing improvements allows HOA managers to enhance the overall quality of life and maintain or even raise property values.
What does an HOA Management Company do?
Most HOA management companies offer a range of services, including the following.
Administrative support: HOA managers can take on the responsibility of completing the many day-to-day administrative tasks that often bog down a Board. Organizing meetings, corresponding with residents, and much more are all administrative tasks provided by an HOA management company.
Financial management: Financial management is another important task that HOA management companies can complete. Most companies will have a dedicated financial department with experts who can guide a Board in creating budgets and managing expenses.
Property maintenance: Keeping a community maintained and looking nice is essential to a community association’s Board responsibilities. An HOA management company can help you maintain all communal property in your community. For life style communities and lake communities, this service is especially helpful.
Rules enforcement: HOA Boards are tasked with determining the rules that govern their communities. An HOA management company can help you enforce these rules.
Vendor management: Vendors keep a community running. From lawn maintenance to contractors, vendors perform many work-intensive tasks that keep an HOA looking nice. An HOA management company will hire and manage all vendors, handling this time-consuming and often frustrating task for your Board.
If your HOA is located in North or South Carolina, and you are looking for an excellent HOA management company, try Association Management Group (AMG). We provide property management services to HOAs, condominium associations, townhome HOAs, life style communities, common interest commercial properties, and more. Contact us today to learn how our dedication can help build a happier community.
House Bill 542 has the power to drastically change NC community association law. This bill will apply to all HOAs and condos if passed. How do you feel about the changes this bill would create?
As hurricane seasons become increasingly intense and unpredictable, it is crucial for homeowners associations (HOAs) to take proactive measures to protect their communities and residents. The Atlantic hurricane season, which typically runs from June to November, poses significant risks to coastal and inland areas alike. This blog post will provide valuable insights and recommendations on how HOAs can effectively prepare for the Atlantic hurricane season.
Develop an Emergency Preparedness Plan
One of the first steps for HOAs in hurricane preparation is to develop a comprehensive emergency preparedness plan. This plan should outline procedures for evacuation, communication, and coordination with local authorities. Identify evacuation routes, establish a safe meeting point for residents, and designate a communication system to keep residents informed before, during, and after a hurricane. Regularly review and update the plan to ensure its relevance and effectiveness.
Conduct a Risk Assessment
HOAs should conduct a thorough risk assessment to identify vulnerable areas and potential hazards within the community. Assess the structural integrity of buildings, roofs, windows, and doors, and take necessary steps to reinforce them if needed. Identify trees and branches that may pose a risk of falling during high winds and arrange for regular maintenance and trimming. Additionally, review the drainage systems and make necessary improvements to prevent flooding.
Secure Outdoor Items
Outdoor items such as patio furniture, grills, and trash cans can become dangerous projectiles during a hurricane. Create guidelines for residents to secure or remove these items before a storm approaches. Encourage residents to store such items in a secure location or bring them indoors. Reinforce the importance of adhering to these guidelines to prevent damage to property and minimize potential hazards.
Communicate and Educate Residents
Open and consistent communication is key to ensuring residents are well-informed and prepared for the hurricane season. Utilize multiple channels such as email, social media, community bulletin boards, and newsletters to disseminate important information, emergency protocols, and evacuation plans. Encourage residents to sign up for emergency alerts from local authorities and share resources like hurricane preparedness guides. Consider hosting educational workshops or inviting experts to discuss hurricane safety measures.
Coordinate with Local Authorities
HOAs should establish strong relationships with local emergency management agencies and stay connected with their latest updates and guidelines. Collaborate with these authorities to understand evacuation procedures, emergency shelters, and other essential services available in the community. This collaboration will help ensure a coordinated response and enable quick action in times of crisis.
Establish Emergency Contacts
Maintain an updated list of emergency contacts for residents, including local authorities, utility companies, insurance providers, and community volunteers. Share this information with all residents and emphasize the importance of keeping it easily accessible. Encourage residents to create personal emergency kits containing essential supplies such as water, non-perishable food, flashlights, batteries, and first aid items.
Conduct Regular Drills and Training
Practicing emergency drills and conducting training sessions can significantly enhance residents' preparedness and response during a hurricane. Organize mock evacuation drills, familiarize residents with emergency routes, and provide guidance on essential tasks such as shutting off utilities and securing properties. These drills help residents become more confident and efficient in executing emergency plans when the need arises.
Conclusion
Preparing for the Atlantic hurricane season is a responsibility that falls on both HOAs and residents. By following these recommended steps, HOAs can significantly enhance their communities' readiness and resilience in the face of hurricanes. Remember, early preparation and proactive measures are the key to minimizing damage, ensuring safety, and promoting the overall well-being of residents during hurricane events. Stay informed, communicate effectively, and work together with local authorities to protect your community.
The South Carolina Department of Consumer Affairs is releasing a compilation of HOA complaint data from the past five years to celebrate the HOA law’s fifth anniversary. How do you feel about the data?
After the collapse of the Champlain Towers Condo building 2 years ago, many experts looked into why this tragedy happened. What could have been done to prevent this event? Read more to find out.
June officially ushers in summer. During the summer months, people are outdoors and more active. You will find attendance at community events and businesses to grow during the summertime.
In communities, people are outdoors, enjoying their pool, and their homes, leisurely, walking, and enjoying the neighborhood.
Summer is a great time to take advantage of people being outdoors. This is a great time for HOAs to make volunteer opportunities known.
There are many ways to use the summer months as a time of getting to know residents and recruiting them to help with the HOA board or committee.
1. People are outdoors and more active. They are more involved with community activities; they meet neighbors while walking or at the pool.
They may hear positive information about the management and consider volunteering.
2. More people move during the summer. Communities see new residents move in during the summer. Statistics show that families move more during the off-school season.
Reaching out to new residents with a welcome letter telling them about the board or management team may spark their interest. Let them know the areas of volunteer opportunity within the management.
3. More people communicate with the community management team during the summer.
More residents are out enjoying amenities and may contact the association manager for maintenance issues. This is a good time to send a letter, thanking them and letting them know there are volunteer opportunities available.
4. Summer is a good time for the board to interact more with community members. There are more organized community events, as well as newsletters going out.
The summer season also provides longer daylight hours for participation and usage of the clubhouse and other facilities. This gives residents an opportunity to use the various amenities and realize how much they enjoy their HOA.
5. Summer gives people a good feeling.
During the summer, the community management will have regular lawn maintenance and residents will see the community becoming beautiful. The management may spruce up the common areas or entrances with flowers or shrubbery. This will give residents a feeling of pride in their community.
This will also make them feel better about volunteering, giving them a reason to speak positively about the management and their experience and giving them an incentive to maintain their own property.
Giving residents a positive experience may prompt them to get involved with the community through volunteering.
HOA boards are comprised of people from many backgrounds and ages. Each volunteer brings a unique perspective and talent. This results in a variety of viewpoints on an HOA board.
DR. Lori Baker-Schena states:
“I think we must be mindful of the fact that we want our board to reflect the community. And so, we need to look at our community and then find representation that truly reflects it. And I'm also not talking about just ethnicity or race. I'm talking about age, too.”
Welcome volunteers have some type of informational meeting or orientation to inform them about the HOA and what is expected of a volunteer.
Contracts can be tricky and difficult to navigate. Read this article to learn multiple implications that appear in Community Association contracts, and tips on how to fix them.
After the COVID Pandemic, people became more comfortable with meeting virtually, due the this, South Carolina is considering a bill that would allow participation for HOA meetings to be virtual. Click for more information.
With the rise in popularity of Airbnb, and the controversy surrounding it, Greensboro’s city council has approved an ordinance that lays out guidelines for short-term rentals. Do you agree with the guidelines put into place? How do you feel about Airbnb?
June officially ushers in the season of summer. Children are out of school, summer vacations are planned, and everyone loves summer activities. In an HOA community, planning summer activities for residents is a great way to bring people out to meet each other and have fun. If they enjoy the activities, you may even get a few volunteers for your HOA.
Here are a few summer holidays an HOA can celebrate in the community.
Father’s Day
Every year, Father’s Day is celebrated by families all around the world who plan activities to celebrate the special men in their lives. Father’s Day 2023 will occur on Sunday, June 18. Your community can plan a Father’s Day brunch, picnic, or other celebrations to honor Dads.
Summer Solstice
This year, the June solstice occurs on Wednesday, June 21, marking the astronomical first day of summer in the Northern Hemisphere. The solstice is celebrated by many cultures around the world.
Summer is a great time to enjoy the outdoors. If your pool is not open, plan a pool opening party, a summer kick-off barbecue with games that the whole family can enjoy. Your HOA board should plan for these activities and make sure the lawn and maintenance upkeep are done, the pool is clean and ready to open, the pool restrooms are all prepared for guests, and any other needed maintenance routines should be completed.
Flag Day
Both President Wilson, in 1916, and President Coolidge, in 1927, issued proclamations asking for June 14 to be observed as National Flag Day. But it wasn't until August 3, 1949, that Congress approved the national observance, and President Harry Truman signed it into law.
Flag Day does not necessarily require an activity; however, your community can be patriotic and recognize this day. Your HOA could have small flags for community members to pick up to display on flag day.
Independence Day
The Fourth of July—also known as Independence Day or July 4th—has been a federal holiday in the United States since 1941, From 1776 to the present day, July 4th has been celebrated as the birth of American independence, with festivities ranging from fireworks, parades, and concerts to more casual family gatherings and barbecues.
July 4th is a big holiday and is a great time for your HOA to plan an activity to bring all community members out. Your board will need to plan this early for it to be successful.
Some ideas are a barbecue, a picnic, and swimming. Most families visit local fireworks displays in their city. If your city has a large event, then hosting a fireworks display may not be a good idea. Make sure to be prior to July 4th. All rules and regulations regarding fireworks are communicated to members.
Labor Day
The Labor Day holiday is rooted in the late nineteenth century, when labor activists pushed for a federal holiday to recognize the many contributions workers have made to America's strength, prosperity, and well-being.
Labor Day unofficially ends the summer season. Again, a Labor Day picnic would be a great idea. If it is not within your HOA budget to host an event like this, members could be asked to bring a picnic basket for their own family or bring a cover dish to share. Having members provide food will help cut the cost of the event for your association.
Providing regular activities in your HOA will keep residents interested and create a sense of community. The key to successful events is to plan early and promote the events to the community.
At Association Management Group (AMG), customer satisfaction is our #1 priority. Our professional community association management company is dedicated to providing superior service and cutting-edge solutions, supporting condominiums and homeowners association (HOA) communities with a broad range of services that can be tailored to individual community needs.
We’ve got the Carolinas covered. With physical offices in Greensboro, Winston-Salem, Charlotte and Raleigh/Durham, NC, and Greenville and Aiken, SC
AMG’s mission is to combine unparalleled expertise with outstanding property management service to create value for our client communities.
