What do I need to specifically ask for...

Started by JamesB37 • 11 replies • 259 views

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JamesB37 (California)
Posts: 351

Posted:

What do I need to specifically ask for...

Recently got a copy of the general ledger for the last eight months. There are a couple of items I would like to 'drill down' on to get more info

Example
"Management Extra's" has been averaging a little over $4k per month and we are supposed to have an all inclusive contract with the PMC

Also, Is there any way to find out how much our HOA attorney is charging for things like letters, emails, IDR meetings, etc? (actual invoices are forbidden)

TimB4 (Tennessee)
Posts: 21,062

Posted:

Ask for a copy of the contract.

This will identify what the MC can charge extra for.

JamesB37 (California)
Posts: 351

Posted:

Regarding the Management Company - I did. I even posted about it (all inclusive vs non inclusive) I have an idea what they can charge for, but it doesn't break down how they got up to $4k per month

SheliaH (Indiana)
Posts: 6,964

Posted:

Have you asked for the income/expense statements? It should be broken out by line item. You may see miscellaneous expenses in each category and you ask what that was for. All of that could add up to $4K.

you said it goes "up to", so that doesn't mean $4k a month every month. Also note the board meeting minutes, you may see where they asked the property manager to do something that was beyond the contract.

I seem to recall you asked about association budgeting in another conversation and some of us noted it didn't sound like you had an understanding of how they work. I'm not saying you don't have valid concerns, but even an "all inclusive" price at a hotel resort doesn't cover EVERYTHING. I hope you give the contract a good read while you're delving into this.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JackieB4 (California)
Posts: 398

Posted:

I have witnessed our PMC/PM skillfully avoiding answering the questions. We meet bimonthly so they redirect to "next Exec/Open session meeting" which kicks the can down the road for
2 months. The other 2 Directors are indifferent, haven't read our documents ("that's why we have a PMC") and often initiate self-serving motions, plus see no need for TRANSPARENCY.
Yes, we need a new BOD to hire a more democratic PMC. What a scam!!
My advice: Put questions in writing; be quite specific ; persist with confidence. Voluntereing can be brutal.

JamesB37 (California)
Posts: 351

Posted:

Shelia - that got me pointed in the right direction, thx. It's a pdf file and a ran OCR on it and then a word search on 'mgmt extras' and I can see the different categories (ARC fees, Late fees, Collections/Delinquencies, etc) Looks like I have have to break out the calculator and do some math

One listing however has almost $7k in 'office fees' in one month, no other explanation - how would I break that down?

MaxB4
Posts: 3,513

Posted:

James,

How many homes are in your community?

JamesB37 (California)
Posts: 351

Posted:

over 1,000

MaxB4
Posts: 3,513

Posted:

Based on many years of experience, $4K is not out of line for that many homes.

JamesB37 (California)
Posts: 351

Posted:

thanks

BillD16 (Texas)
Posts: 974

Posted:

Quote:

Posted By JamesB37 on 04/20/2023 2:31 PM
What do I need to specifically ask for...

Recently got a copy of the general ledger for the last eight months. There are a couple of items I would like to 'drill down' on to get more info

Example
"Management Extra's" has been averaging a little over $4k per month and we are supposed to have an all inclusive contract with the PMC

Also, Is there any way to find out how much our HOA attorney is charging for things like letters, emails, IDR meetings, etc? (actual invoices are forbidden)

James, I believe you want to ask for an itemized list of these “Management Extras”.

Are you on the BoD? Are you getting monthly financial reports from the PMC? Are they “AP” reports, that include copies of receipts and other useful details?

I lack Max’s vast experience, but I think $4K/month is kinda high; my neighborhood is ~600 homes and our “extras” tend to run about $1000/month.

In the past we had a problem where our PM/PMC appeared to be milking us by issuing excessive numbers of Violations.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

WendyM5 (North Carolina)
Posts: 1,522

Posted:

our mgt company was doing this. I asked them to itemize the expenses and guess what for the last 2 months they had $600 in errors. you are right to get these itemized. My other board members don't care. One board member acts like the Mgt co is more important then our residents.

contarct should state that these expenses are itemized.

vis ta vie

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