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Passing the torch: Why succession planning is essential for community association professionals

Do you know what happens to your company once you’re no longer able to work? Have you determined who will take charge after you’re gone? For any business today, the importance of having a succession plan is critical for a company’s long-term success.

Succession planning involves creating an arrangement for someone to either own or run your business after you retire, become disabled, or die.

The need for a strategic succession plan was the leading topic discussed by more than 200 community association management company CEOs and executives at the 2019 CEO-MC Retreat hosted by the Community Associations Institute (CAI) in La Quinta, Calif.

As the growing industry is witnessing a changing of the guard, its pioneers—those who spent the past 40 years building thriving management companies and businesses that support community associations—are looking for ways to successfully pass the torch to the next generation of leaders.

Today, there are more than 7,000 community association management companies and nearly 55,000 community association managers, according to the Foundation for Community Association Research’s 2018-2019 National and State Statistical Review for Community Association Data. Acquiring the next generation of talent to manage and lead these companies is no easy task.

When asked if their company has a succession plan, more than half (54%) of the CEO-MC Retreat attendees reported that their firm does; 43% do not.

CAI President Cat Carmichael, CMCA, PCAM, challenges executives to avoid the expectation that a family member will be the one to step up and lead the business in the event of an absence, a dangerous assumption many business owners share today. Carmichael added that it’s essential to think of current employees and the value they bring to the company’s future.

“Developing succession plans helps to ensure business continuity if and when an executive or a key employee leaves. Every business should be thinking about its ‘transferable value’—that’s the value of the company when the executive no longer works in it full-time,” says Carmichael. “Elevating current staff value will not only add business value because of the quality and reliability of the workforce, but it will assure that monthly recurring revenue continues.”

Carmichael adds that there’s no better time than the present to deal with the unexpected and protect the businesses that have been built over the decades. A strategic succession plan will ensure the company’s culture is maintained and reduces stress on staff during the transition. It also means the company retains knowledge, history, and business relationships.

Learn more about building a succession plan from the Small Business Administration.

The post Passing the torch: Why succession planning is essential for community association professionals appeared first on Ungated: Community Associations Institute Blog.

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BiggerPockets Podcast 350: How to House Hack Your Way to Financial Freedom in 3 Years with Craig Curelop

Ever wanted to break into real estate but just weren’t sure how to take that first step? You’re not alone!

Almost all investors struggled with their first deal. But today’s guest may be just what you needed to get your foot in the door! On today’s show, Brandon and David dive deep into the mind of Craig Curelop, the author of BiggerPockets Publishing’s new book The House Hacking Strategy.

Craig shares some incredible advice on how he eliminated his living expenses and earned as much as one could from a full-time job through house hacking—all by age 26! Craig breaks down just how simply you can get your first property with less than 5 percent down and turn it into a wealth-building machine that will help you achieve a “return on your potential” you may not have realized you’re currently lacking.

You’ll learn what to look for in a house hack, how to find the “path of progress” to start your search, and which straightforward criteria we can all use when searching for deals. You’ll also hear how to make “hedonic adaptation” work for you, how to exchange comfortability for profitability, and how to decide which property would work best for your specific situation.

We ALL want to own more real estate, and we all need somewhere to live. On today’s show, you’ll learn how to combine those two needs to build wealth and save money at the same time.

Download this one today!

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Frost Fight: Brace your community for winter

While the fall foliage has yet to appear in parts of the U.S., western states had their first taste of winter just a week after summer’s official end, with a storm that dumped up to 3 feet of snow in some areas and brought record-low temperatures, strong winds, and blizzard conditions.

Although weather forecasts are never 100% accurate, this may be the beginning of a freezing winter for two-thirds of the country, according to the 2020 Farmers’ Almanac’s winter forecast, which calls for a “polar coaster” of cold conditions from the eastern part of the Rockies all the way to the Appalachians.

“The biggest drop—with the most freefalling, frigid temperatures—is forecasted to take hold from the northern Plains into the Great Lakes. The Northeast, including the densely populated corridor running from Washington to Boston, will experience colder-than-normal temperatures for much of the upcoming winter,” reads the forecast, which predicts that the coldest outbreak of the season will come during the final week of January and last until the beginning of February.

Snow lovers might be shivering with anticipation, but it’s important that community associations encourage residents to winterize their homes before the brunt of the season hits. Here are some items to consider.

Indoor winterizing

  • Examine doors and replace weather-stripping as needed
  • Inspect window caulking and reseal where needed
  • Check vents and repair where needed
  • Clean chimneys and flues
  • Remove items near heat vents
  • Place nonskid runners or door mats outside to help keep water, sand, and salt out

Outdoor winterizing

  • Cut tree branches and shrubs that hide signs or block light
  • Examine outdoor handrails and tighten if needed
  • Turn off electrical breakers for outdoor equipment
  • Close hose bibs
  • Clean out gutters and downspouts
  • Clear yard drains
  • Spray outdoor locks and hinges with lubricant
  • Stake driveway and walkway edges that may be difficult to find under deep snow

Don’t forget to stock up on supplies such as ice melt, sand, generator fuel, and snow shovels. Ready.gov also has tips on how to stay safe during a winter storm.

The post Frost Fight: Brace your community for winter appeared first on Ungated: Community Associations Institute Blog.

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Agencies Increase Residential Appraisal Threshold

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively “the Agencies”) adopted a final rule increasing the threshold for requiring an appraisal in residential real estate transactions from $250,000 to $400,000.
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BiggerPockets Podcast 349: Multifamily Flipping and Due Diligence Tips to Save Thousands with Nathan Tabor

Apartment flipping from one of the best in the biz!

On today’s show, Brandon and David sit down with Nathan Tabor, a well-known multifamily investor who has done 26 multifamily flips in less than 10 years! You will love this informational and oftentimes hilarious episode, where Nathan shares some fantastic advice on how to flip apartments for big returns, what to look for in a deal, and which five incredible pieces of due diligence every investor needs to know.

You’ll also love his straightforward direction regarding questions to ask the county zoning department, great advice for raising money, and some mind-blowing insight into who actually owns fire hydrants!

This show is a very fun listen with tons of talk about dealing with rejection, finding the niche that’s perfect for you, and applying information you already know. Nathan’s story is sure to change your mindset and confidence when it comes to taking action in your life. Make sure you listen today!

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Now hiring: Employment growth projected for community managers

Community association management is becoming a sought-out career for those entering the job market for the first time or those considering a change late in their professional lives. The role is expected to see growth for new hires in the coming decade, according to recent data from the U.S. Bureau of Labor Statistics.

There were about 363,000 property, real estate, and community association managers working in 2018 with employment forecast to grow 7% through 2028, faster than the average for all occupations. BLS attributes this growth to more people choosing to live in condominiums, cooperatives, planned communities, and senior housing.

“Community associations are a true economic engine, and there’s a need for talent at all levels,” says CAI’s 2019 President Cat Carmichael, CMCA, PCAM, who has made it her mission to open channels that can bring in talented individuals to common-interest communities. “We are striving to find new talent where the talent is and increase awareness of the benefits of community association service.”

Employers typically prefer to hire college graduates with a degree in finance, accounting, real estate, or public administration, but workers with a high school diploma and less than five years of relevant experience also can be considered for entry-level positions, according to BLS.

Employers also may require that community managers participate in training programs or workshops from professional trade associations (like CAI’s Professional Management Development Program) to develop their management skills and expand their knowledge on topics such as insurance and risk management, governance, homeowner relations, personnel management, and reserve funding.

BLS calculated the median pay for a community manager in May 2018 at $58,340 per year. This amount is higher than the median compensation reported by assistant community managers ($43,340) and portfolio managers ($52,500) in the Foundation for Community Association Research’s 2017 Community Association Manager Compensation and Salary Survey. Compensation increases significantly as managers gain more experience and responsibility. According to the Foundation’s research, on-site managers earn an average of $71,560, high-rise managers earn $86,500, and large-scale managers earn $100,000.

Community managers oversee the daily operation of residential properties. In addition, BLS lists some important skills that community managers should have to excel in their role:

  • Communication. Managers must understand contracts and real-estate documents to clearly explain the materials and answer questions raised by residents or board members.
  • Customer service. Managers must provide excellent customer service to keep homeowners happy and expand their business with new clients.
  • Interpersonal. Because community association managers interact with people every day, they must have excellent interpersonal skills.
  • Listening. Managers must listen to and understand residents to meet their needs.
  • Organizational. Managers must be able to plan, coordinate, and direct multiple contractors at the same time, often for multiple properties.
  • Problem-solving. Community association managers must be able to mediate disputes or legal issues between residents, homeowners, and board members.

The post Now hiring: Employment growth projected for community managers appeared first on Ungated: Community Associations Institute Blog.

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BiggerPockets Podcast 348: Full-Time Job, Full-Time Mom, and Full-Time Wealth From Rentals with Ashley Kehr

Today’s guest is proof rental property investing can be fun, rewarding, and—with the right systems in place—totally doable… even with a job and a family.

Ashley Kehr sits down with Brandon and David and shares some great advice for building a rental property portfolio without much hassle or headache! Ashley manages all her own rentals and discusses the top three apps she uses to do it with ease. She also shares how she structures her partnerships, how she pitches her deals, and how she’s finding deals in today’s hot market.

Ashley gives great advice for what most newbies get wrong about investing, which apps she uses to find off-market property owner info, and how she uses her children to help her find potential deals! Plus, you won’t want to miss how Ashley helped her sister buy a duplex (and spend just $45 a month to live there), as well as how she bought a property no one else wanted, pulled $6,000 more out of it than she put in, and created a cash flow of almost $1,000 a month!

Today’s show is fun, entertaining, and full of great advice for investors of all levels. Download this one today!