Property management company's inaction disgusts owner

Q. I am totally disgusted with life in my association. Construction has gotten out of hand to the extent of causing a serious fire hazard. Storage of boats and other RVs create fire hazards and distort views when driving around corners.

The joke of the day is, "What are you going to do, call the association?" Phone calls to the manager produce only lip service. Supposedly, management of the association soon will be transferred to the homeowners, but little action has taken place.

It seems like we are paying a management fee for no service. There has only been one association meeting in the past six months. I think the management company has a conflict of interest because its representatives sit on the board, accept money from homeowners, and are responsible for the distribution of money.

It seems like action is only taken when one owner complains about another to the board and a boiler plate letter is then sent. Usually these matters could be taken care of with a telephone call or a knock on the door.

Also, we could easily maintain our common areas and don't need a management company to do it. Dissatisfaction with the company is resulting in a movement to secede from the association.

What can we do?

A. It appears the management of the association is still under the control of the developer. The developer decided to hire a management company as opposed to directly managing the association.

It is not easy for a management company during construction and the transition between developer and homeowner control. Often the company deals with construction problems in the common areas. Not all management companies are forceful in getting the developer to make proper corrections, but many companies take their jobs seriously and work on behalf of the association membership.

As for the meetings, state law requires a minimum of one per quarter. You could contact the ombudsman's office at the Nevada Real Estate Division and file a complaint.

In addition, you could write or meet with the developer to discuss the management company's lack of performance.

At the next board meeting during the homeowners' comment period, you could address your concerns with the board.

You could also create a petition listing all of the current problems with the management company and asking the developer and board to replace the company.

As for the enforcement of regulations, it is required by state law first to send a warning letter to the homeowner. Many management companies use a "boiler plate" letter, since the state law requires specific information to be included in each warning letter, such as the fee structure or that the homeowner may request a hearing with the board before being fined.

It is impractical to think that a board member or manager could make numerous telephone calls or visit the property on a daily basis to knock on doors to communicate with homeowners, and for several reasons. There is no guarantee that the homeowner will be home, and this service would increase the management fees charged to the association. More importantly, written documentation has more validity, especially if legal action is taken by either party.

It is becoming more difficult for communities to self-manage. Why? The laws are constantly changing. Also, the turnover and burnout of unpaid board members serving as professional managers -- whose legal responsibility is to be kept informed about the new laws -- can make self-managing difficult.

Good management companies can help a board stay focused and remain objective when making decisions. In addition, some associations have professional management requirements within their governing documents, and some mortgages require professional management.

The bottom line is that management companies can be terminated. Find one what will service your association. It may not be easy given the current conditions of your community, but you have nothing to lose in helping to make this change.

Q. In most cases, no. A friend recently attended a continuing education program and was told that associations cannot foreclose on properties because of failure to pay fines or association dues. Is this true?

A. Associations still have the legal right to foreclose on owners who have not paid their regular or special assessments per NRS 116.3116. This right has never been eliminated by the legislature.

However, NRS 116.31162 states that an association may not foreclose against a homeowner on a fine for a violation of the declaration, bylaws, rules or regulations, unless the violation is of a type that threatens the health and welfare of the residents.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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