This isn’t talked about enough. The community management space is rapidly evolving but technology and data transparency lagged behind most other industries. It’s becoming clear that most communities now lack the reserves required to protect homeowners. Boards and Management companies that identify creative lending solutions and use technology to engage and educate homeowners will see their communities experience higher home values as homeowners grow to better understand the risk of being under-reserved. Commercial buildings are rated. Apartments are rated. Communities WILL one day be rated. Thank you Carol Shenk, EBP for this. It needs to be more commonly discussed. #communitymanagement #associationmanagement #condo #hoa #reserves SmartProperty #cincsystems
Chris Bruffey
8mo
Thank you Shea Dittrich for sharing your thoughts and this article. As bankers that focus on the community management industry, we see that many associations and community managers aren’t aware that loans are an option to finance these much-needed projects. Use your banker as a competitive advantage when working with your association - a demonstration of another value-added service your management company brings to the table. And, it goes without saying that cutting edge community management software makes easier and quicker to underwrite these loans!!
Dee Rowe
8mo
As a former community manager who advised two different communities to get a bank loan to address deferred maintenance, I agree that this is sometimes necessary. But the better option is to fund reserves, increase assessments regularly, and keep up with maintenance before things fall apart. Sadly, it seems the industry did not catch onto this until way too late in the game. There are no easy answers and very few difficult ones!
You can’t get a bank to loan you if your delinquency rate is north of 7%. And why borrow when you have assets disguised as liabilities (debt).
Carol Shenk, EBP
8mo
Thanks Shea Dittrich! Appreciate you sharing my article. And, I like the thought of Community Associations being rated! That is not something I considered!
Innovative solutions in community management, like technology integration and education, are key to sustainability 🌱. As Plato once implied, wisdom begins with understanding our need to adapt and evolve. Staying ahead can elevate entire communities! #CommunityGrowth #InnovationInAction