Nevada Cooperator Winter 2020
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Winter 2020                               NEVADACOOPERATOR.COM  continued on page 10   property is generally the result of fiscal mismanagement. For example,   boards may choose to undertake the wrong projects at the wrong time.   They may decide they prefer to renovate the lobby when in fact they   should be upgrading their boiler. Or they may decide to put in solar   panels when they should be converting from oil to gas.” And those   aren’t just theoretical, Halper is quick to note. “These are real examples   that we’ve encountered over the years.”  NEVADA  THE COMMUNITY ASSOCIATION RESOURCE  THE  COOPERATOR  continued on page 10   Like so many other sectors of the econ-  omy, residential real estate management has   changed and evolved since the turn of the   millennium—and like those other sectors,   much of that evolution is directly linked to   the development and adoption of technol-  ogy. Yet the essence of the manager’s mission   remains the same: one of close interpersonal   interaction. Technological advances may   have sped up response times and analytics   in many situations, but good, old-fashioned   personal contact still remains the keystone to   effective management.  The Game Changer, for Better or Worse  What seems to have changed the most   in the last couple of decades is the manag-  er’s work hours. Daniel Wollman, the CEO   of Gumley-Haft, a management firm based   in New York City, explains that years ago,   his job—while not a traditional 9-to-5 po-  sition—was more or less limited to regular   business hours. Particularly during the sum-  mer months, the pace of work would slow   as many people in the industry went away   for long periods of time, often as much as a   month or even the whole season. With the   advent and adoption of email as the primary   means of communication between managers   and their client communities, that’s definitely   changed.  “Email changed everything,” Wollman   says.  “Thirty years ago, there wasn’t an inter-  net. Now I get north of 300 emails daily. This   Despite the best intentions of board members, residents, and even managers, condomin-  ium properties and HOAs don’t always run like well-tuned machines. Sometimes they hit a   bump in the road...and sometimes they break down completely. The reasons behind such a   breakdown can come from many directions, including financial missteps, physical plant prob-  lems, and interpersonal disputes.  Money and Maintenance  In any business, money is always a potentially huge problem—and co-op corporations and   condominium associations are no exception to this rule.  Financial complications tend to come   from two directions: One is financing, the other is reserves.    Condominium associations undertake community-wide financing for any number of rea-  sons that can make the whole community liable in the event of default.  Reserves (or the lack thereof) are the other area where communities may find themselves in   financial distress. Like just about everything else, physical plants and common elements age—  and if proper reserves have not been built up and maintained, buildings may find themselves   in the financial weeds if a major physical component like a roof or boiler suddenly needs repair   or replacement, or if a bad winter or other unforeseen event causes extensive damage to the   property.  According to Stuart Halper, vice president of Impact Management, a co-op and condo man-  agement firm with offices in Manhattan, Westchester, and Long Island, New York, “A distressed   An individual’s interest in their com-  munity association is rarely just financial;   in most cases, a building or HOA is also   that individual’s home—and as such they’re   motivated to contribute to its quality of life,   neighborhood congeniality, and aesthetics,   just to name a few of the things that make a   place somewhere people love to live. For that   reason, most of the people who volunteer to   serve on their association board are full-time   residents of that association.   This is not always the case, however. Oc-  casionally, people who don’t actually reside in   an association pursue board membership—  usually due to some combination of free time   and personal and/or financial interests in the   community. While there’s nothing inherently   problematic with having non-residents on a   co-op or condo board, it does present cer-  tain considerations. We reached out to some   management experts to delve into what   may motivate these non-resident members,   whether or not their presence on the board   increases the likelihood of conflict with the   members who do call the community home,   and how potentially differing interests can   coexist harmoniously and productively.  Motivating Factors  When a person who doesn’t live in an as-  sociation year-round runs for a board posi-  tion, a voting resident should evaluate them   with much the same criteria as they would   a full-time neighbor: what is motivating this   individual to seek a board position, and will   they put the interests of the greater associa-  tion above their own?  “Over the years, we have represented   some boards with non-resident members,”   says James A. Slowikowski, a partner with   Dickler, Kahn, Slowikowski, & Zavell, Ltd.   in Arlington Heights, Illinois. “Sometimes   the member lives locally, but is not a resident   in the association. In other instances, the   members are snowbirds, and as such they   are ‘absent’ for several months at a time, but   The Challenges of Managing   a Distressed Property   Getting Back on Track  BY A J SIDRANSKY  The Evolution   of Property   Management  Big Changes in the    Last Decade  BY A J SIDRANSKY  Non-Resident Board   Members  Managing Absentee    Decision Makers   BY MIKE ODENTHAL  205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED  THE COOPERATOR  EXPO  2020  WHERE BUILDINGS MEET SERVICES   200+ EXHIBITORS, SEMINARS,   FREE ADVICE & NETWORKING  LAS VEGAS’ BIGGEST & BEST    COMMUNITY ASSOCIATION  EXPO!  LAS VEGAS CONVENTION CENTER — WEDNESDAY, APRIL 29, 10–3:30    FREE REGISTRATION: LV-EXPO.COM  continued on page 11 

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