Fifty Shades of … HOA Management

OK, I KNOW WHAT YOU THOUGHT WHEN YOU READ THAT TITLE! AND, WHILE I AM SURE WE CAN ALL MAKE SOME RATHER HUMOROUS (OR MAYBE NOT) ANALOGIES, CACM WON’T LET ME GO THERE. THE “GRAY” IN THIS ARTICLE ACTUALLY REPRESENTS THAT SPACE BETWEEN BLACK AND WHITE. THE ANSWER TO THOSE QUESTIONS WE THINK WE KNOW, BUT NEVER TAKE THE TIME TO ASK.

Recently a survey was sent out to CACM manager members regarding several aspects of their career and feelings on the state of the industry. We often ask ourselves, (or we are often asked), “Why do you do this job?” The responses, as you will see, are quite eye-opening. Across the board there appears to be a fairly consistent consensus within each category.

The experience level from the respondents ranged from two to 40 years with the average being in the 15 to 20 year range.

44% Portfolio Managers 16% Large Scale Managers 14% High Rise Manager 6% Age Restricted / Active Adult Managers 3% New Development Managers 17% Other 48% of the respondents were from large companies/associations (more than 40 employees) 30% from mid-sized companies/associations (21 - 40 employees) 22% from small companies/associations (5 - 20 employees)

What do you love most about working in the California community association management industry? It appears that there is not a lot of diversity in what we love as a group, while the responses were varied, there was a resounding theme among the respondents:

The diversity and challenge of each day that allows for zero boredom. The opportunity to help homeowners and make a difference in their lives. Sense of accomplishment in working with board members and vendors. Work schedule flexibility.

The most interesting answer, at least to me:

This job is hard. Everyday it’s a new headache.

That’s what you love? Fifty shades of “what the heck” right there!

What are your biggest challenges as a California community association manager? Again, there was a resounding theme among the respondents, with the number one response, by far, being:

Difficult, unreasonable, mean people and their expectations, be they homeowners – board members – vendors. This was closely followed by:

Rules enforcement or having to enforce impractical rules

Overwhelming responsibility and finding a work/life balance

Dumb legislation – (paraphrased)

The most intriguing response;

Residents with mental disorders and no caretaker.

(I see a rule change coming on – but alas, I believe it would only meet four of the five criteria. Or not? Another gray area?

What do you feel are the biggest issues (and potential solutions) our industry is facing in terms of Professional Recognition Overall, respondents were very impressed and satisfied with the support and actions provided by CACM and felt that great strides were being made in raising the level of professionalism and recognition. The need for continued education for both managers and board members was expressed by many.

Following closely behind education were comments geared towards negative press and the manner in which HOAs, boards and managers were depicted and/or stories

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50 Shades of...HOA Management

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sensationalized. Many felt that more strides need to be made in getting the press to better understand our role within the industry.

Education

As mentioned earlier, the quality of education through CACM was overwhelmingly positive. There were also many comments in support of the specialty designations and master certification program. Several members requested that the classes be offered more frequently within their geographic area. Here is where I will insert a public service announcement! CACM depends on experienced volunteers for teaching classes. If you would like to become a part of their faculty, please reach out to education@cacm.org.

Wages

No gray areas here. The majority of respondents feel that wages are too low. Interestingly enough, some members equate low wages with the lack of professional recognition within the industry and sub-par management fees. Others felt that mega-corporations were driving down both salaries and professionalism. Several respondents felt that On-Site and High Rise Manager salaries received adequate compensation while Portfolio Managers were underpaid.

Client Retention What insight! Once again, there were several versions of the same theme that were presented time and time again: No problem with retention – mostly followed by the comment;

I’m an on-site manager. Boards are all about the bottom line and they don’t understand our value until it is too late. Mega-companies and some large companies are so busy driving down fees that they don’t realize that they are also driving down respect for what we do. Management companies nickel and dime the clients. This places the manager in a bad situation. Walking the fine line between serving the client and serving the management company is difficult.

Best comment;

The manager should know every aspect of a management contract before they start the work; this way there are no misgivings as to what is expected of them and they can see where there are areas for change or allowances.

Bravo! How does one know what they are being compensated to do, if they have never taken the time to read their job description? Nothing gray about that statement whatsoever.

Other Wow! Overwhelmingly, managers recognize issues with megacorporations or have downsized their portfolio and upgraded their pay and quality of life by moving on. (Did you read my articles in the early 2000s?) Other noted sentiments:

CACM board member training and/or mandatory training for board members Stay relevant and become more proactive about local and statewide issues such as drought, growing senior population and upcoming legislation.

Do you view community association management as a long-term career choice? Please explain why or why not. Another no gray area answer, as the resounding response was “Absolutely!” As a matter of fact, there was only one person that replied, “No.” Their stated reasons were similar to what managers liked about the industry, (see above) with diversity, flexibility and helping others topping the charts. Of course, there were a few, “I’m too old to switch careers,” thrown in!

If you could give one bit of advice to someone new to this industry, what would it be? Yet again, there are few gray areas within our ranks.

Listen, listen, listen – Communicate, communicate, communicate! Organize, organize, organize – Education, education, education! Always be professional and never take it personally Lots of “tough skin” comments Have a sense of humor and be ethical

Perhaps the most profound advice;

BE PROUD! And build a great network of professionals!

So there you have it ladies and gentleman, as a collective group, while we do recognize there is some need for change we are overall happy with our career, are goal and education oriented and apparently have skin the consistency of an alligator! I would say that makes us fifty shades of fantastic and shackled to an industry with unlimited potential and career growth!

Vicki MacHale is the Executive Director/Principal of ARK Management in San Diego.

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The CACM Board held its annual Strategic Visioning session in September. At this session, we generally review our goals and objectives with emphasis on providing value to the members and support for firms. This year was no different but included a very detailed report from our current President and CEO, Dave Zepponi, on the state of the industry.

His report acknowledged the fact that community management is in a period of increased competition, diminished margins and consolidation. He went on to address specific areas of concentration needed to give members and firms significant value for their continued membership in CACM. For example, Dave firmly believes CACM must do more to take the lead on consumer protection, elevating standards and educating the legislature as well for the more than 14 million residents that live in California’s 50,000 communities. This requires breakthrough innovation in terms of new business models, technological advancements, access to new markets and collaboration with other industries that support our core objectives. The Board agreed and committed the resources to pursue this objective. Currently, only a portion of the total CIDs in California are professionally managed. Achieving our objective should result in an increase in the percentage of California CIDs professionally managed by CACM-certified managers and accredited management firms. We recognize this anticipated growth requires that CACM give management firms more access to a skilled labor market and support for career management systems. We are committed to doing this. In essence, CACM will work On the Industry, while you work In the Industry – furthering your skills and competencies to the betterment of all in the industry as well as those the industry serves. The Election of Directors for 2016 was completed in December. This year, 14 members submitted their names for nomination. Seven were recommended and accepted as the slate of nominees for the five open seats on the Board for the coming year. Newly elected directors include Melissa Bell, CCAM; Carra Clampitt, CCAM-LS; Tom Freeley, CCAM; Tiffany Lynch, CCAM; and Robin Romo, CCAM-HR, PCAM. All directors, existing as well as newly elected, will attend the CACM Board meeting in February. Thanks to all the applicants, nominees and you, our committed members, for participating. On behalf of the CACM Board, Gordon Goetz, CCAM, Board Chair