Do I need a property managers license

Started by LisaH3 • 20 replies • 2562 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

LisaH3 (South Carolina)
Posts: 3

Posted:

Hey everyone,

I am currently the Vice President of a small HOA of just 24 units. You would think a property so small wouldn't have problems, but it's a nightmare. I try to enforce rules and the renters pretty much laugh in my face and do as they please. I believe it's time to begin issuing fines for infractions, the President is telling me we can't do anything without a property manager with a license. My question is can I issue fines, or is he correct in saying that we need someone with a license. I am in SC. Thanks in advance.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

I also live is SC.
If I understand you live in a HOA of 24 units? What kind of common property would a HOA of this size have? What sort of fees can you charge (assessments) to manage what? You apparently have a Board (president anyway). I can tell you this: You don't need a manager to issue fines, it fact a manager has no function in policy decisions except to offer advice, if asked) The manager may be charged with informing owners of infractions, but any actions by the board has to be just that, a board action. No you can not issue fines. If you are a Board member you can formulate (help) policy.
You can communicate with the other owners, you can serve at the direction of the Board, but unless you are charged by the board to collect monies (God only knows why), you would be better served to not touch a penny. You might inform your president that he/she also serves at the pleasure of the Board, they should have elected him.I am positive you need to go back and study your documents, and it sounds like you should have a group session with the president. Do yourselve a favor and visit a few or similar associations and ask how they run their railroad.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Lisa,
If you do live in a HOA, I am sure you will be surprised to know that in the state of South Carolina there is no State Statute that controls HOA's. There is legislation pending but maybe this year something will be done. However, you should be registered with the state as a nonprofit corporation and you will find governing documents on the state site for them, they help. But, all you can do is to try to run the place according to your CC&R's and hope if push comes to shove, you (association) can prevail in court. Right now, I am at a lost to imagine why 24 units can't decide to live in harmony. You all need to sit down and have a Pow wow. Incidently, who are you going to fine, you mentioned renters. Renters are not your responsibility unless they break a law, the board can elect to fine owners, I doubt they can fine renters.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Sounds like the entire board needs a workshop to go over all govening documents and review its "power."

LisaH3 (South Carolina)
Posts: 3

Posted:

the president nor i are being paid, that's not what i am talking about i am asking if we are allowed to issue fines. Not issue fines to the renters but to their landlords. Issuing fines is the only way this place is going to change.

LisaH3 (South Carolina)
Posts: 3

Posted:

i meant to say we are NOT being paid

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Lisa,

No license required. Your docs will inform as to what you or your BOD can and should do.

SusannaM (Florida)
Posts: 366

Posted:

Lisa, as it's been said no community association manager license is required to serve as a volunteer on the board. However, you may want to consider getting one. Here in Florida it only takes 18 hrs. of classroom and $100.00 payable to the state for the license. The difference is that here in FL an applicant has to learn about all the Statutes. I know SC has experienced a boom in residential construction in the past few years. I often drive through your state to go to Charlotte, NC. It wouldn't surprise me if SC passes some sort of HOA legislation in the coming years.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Lisa,
Florida states that anyone who manages an association of which there are 50 units or more, is required to have a P.M. State license. With only 24 units, unless S.C does require you to have one, I'd say as the others have--no license required.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Lisa, if your governing documents allow you to set a fine table and fine owners for infractions of the CC&Rs, then your board can do that without a P.M.

You must first check to see if your governing documents allow for a fine structure.

Then you would need to develop that structure and determine how the fine process will be implemented.

Then, have at it.

In the meantime, a short note to the homeowners that they are responsible to ensure that their renters remain in compliance with the CC&Rs might be in order. Gently remind them that they, not the renters, will be held liable for any infractions, and if compliance is not obtained, they, not the renters, will need to either defend themselves in a lawsuit compelling compliance or for the payment of fines and any subsequent liens against the title, if your state laws allow.

Sometimes owners just need a little "motivation."

SusanW1 (Michigan)
Posts: 5,202

Posted:

Ask the president where he got THAT information that is preventing the board from assessing fines for violations.

SusannaM (Florida)
Posts: 366

Posted:

RobertR in SC, where are you ????

RobertR1 (South Carolina)
Posts: 5,164

Posted:

SusannaM,
I am east of Beaufort on the coast. Small private island, just about built out as far as development is concerned. I am sure there will be battles about that to come. Wonderful place to live if you like on the ocean at (right now) reasonable cost but not cheap. 65 unit condo, very nice, smack on ocean and in need of more full time owners. Probably an overlooked developement. 3 miles X 1 mile private island with a compulsoary Island HOA, around 2400 homesites, still some private lots on market, around 300 condo units in maybe 6 regimes. Right next to state park, Hunting Island. No more developement there. Well worth a look for anyone looking around. Real Estate has devalued but not as much as other places. I think we have had two foreclosures on island in the past year. Not a cheap place to live but if you golf, you can play two great golf courses for around 6-7 K as non equity club member. Practically no commercial developement, four restaurant run by club, a wonderful just remodeled All faiths chapel and community center. Very active social events, great place to live.

SusannaM (Florida)
Posts: 366

Posted:

Robert, that's so funny....I expected you to chime in regarding the OP question, Lisa who is in SC. Did not mean "where in SC do you live"?? But that's OK. I love Charleston....No, we are not looking for more real estate at this time. We have 2 homes, one in NE FL and one in Cincinnati.

EllenS1 (Florida)
Posts: 1,148

Posted:

SusannaM.

I don't know if you are talking about a CAM license but if so here in Florida the cost is about $475 and then wait months after you have taken the test and filled out the application before you know it you are certified.

EllenS1 (Florida)
Posts: 1,148

Posted:

SusannaM (Florida)
Posts: 366

Posted:

EllenS, FL CAM is not the main subject of this thread but since you mention it, I can tell you that here in NE FL the course itself is somewhere between $225 and $275. Then you need fingerprint cards for criminal background check. This can take between 60 and 90 days. I believe there is also a state examination much like in real estate(I used to be a realtor.) What Donna says is not totally correct. You need a CAM license to manage (for compensation) a community of 50 or more units OR, if your annual budget exceeds 100,000. You have to take the state exam within 12 months of pre-licensure training (I am looking at the DBPR Q&A.)

MaryA1 (Arizona)
Posts: 7,043

Posted:

Lisa,

Several have responded indicating a license is not required to manage an HOA. That seems to be the case in most states, however, there are some states (such as FL) that do require PM's to be licensed. I would suggest checking with your state R.E. department. Make certain you state you are inquiring about managing HOAs specifically as most states do require managers of commercial properties to be licensed.

You gov. docs. should state whether or not fines are allowed to be levied for unpaid assessments and/or CCR violations. If it is so stated, that means the board has that power. A PM need not be employed to carry out this function.

GloriaM (North Carolina)
Posts: 829

Posted:

Lisa:

I would start with a letter to the landlord and to the tenant giving the non-compliance issue and state the amount of time the board will give for them to come into compliance. Once the time has expired, send another notice for them to attend a hearing in front of the board. After the hearing/mediation then send a decision of that hearing and begin to assess the fines in accordance to your governing documents. Good luck.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Gloria - I was glad to see something about a "hearing" in regards to overdue assessments.

Our bylaws say that a member has the right to request a hearing (to discuss the overdue bill, perhaps make arrangments) Problem is, the entire board is sitting there PLUS some observer residents. I think that is demeaning to the resident who is trying to speak to someone about an overdue bill. I was thoroughly embarassed for a young lady who came to the board meeting to give a payment on her account. IMO, the Treasurer should have taken her to the side or in another room, and accepted the check and confirmed her intent to make future payments.

Do you have any more information or suggesions about the time and place and make-up of "hearings", as they relate to overdue assessments?

SusannaM (Florida)
Posts: 366

Posted:

Quote:

Posted By RobertR1 on 11/16/2008 6:38 PM
I also live is SC.
If I understand you live in a HOA of 24 units? What kind of common property would a HOA of this size have? What sort of fees can you charge (assessments) to manage what? You apparently have a Board (president anyway). I can tell you this: You don't need a manager to issue fines, it fact a manager has no function in policy decisions except to offer advice, if asked) The manager may be charged with informing owners of infractions, but any actions by the board has to be just that, a board action. No you can not issue fines. If you are a Board member you can formulate (help) policy.
You can communicate with the other owners, you can serve at the direction of the Board, but unless you are charged by the board to collect monies (God only knows why), you would be better served to not touch a penny. You might inform your president that he/she also serves at the pleasure of the Board, they should have elected him.I am positive you need to go back and study your documents, and it sounds like you should have a group session with the president. Do yourselve a favor and visit a few or similar associations and ask how they run their railroad.

Lisa, you may want to pay attention to what RobertR is saying. Fines, hearings, PM license, it's all fine and dandy but ONLY if your governing docs allow it or mandate it. Since there is NO HOA Statutes in SC (like in Florida and a few other states), you don't have a legal back up to use as reference IF your governing docs are silent on these topics.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here