Short-term rental in condo associations are becoming increasingly prevalent. Given their potential negative effects, many condo boards are moving to restrict them. Not all restrictions, though, may be reasonable or even enforceable. Boards must consider the law before taking action.

An Increase in Short-Term Rentals in Condo Associations

There is a clear demand for short-term rentals in the United States. The short-term rental industry is a multi-billion dollar industry, with revenue increasing every year. While vacation rentals experienced a dip during the COVID-19 pandemic, things are back in full swing today.

Why do people gravitate towards short-term rentals?

With a sizable shift to remote work triggered by the COVID-19 pandemic, more and more people are choosing to hop from one place to another. After all, there is a big difference between working remotely from home and working remotely from paradise. With increased flexibility, Americans are now simultaneously working while on vacation.

Short-term rentals are particularly popular in condo communities. Florida, for instance, is home to countless condominiums. As a common vacation destination, Florida welcomes visitors in droves, who often book short-term stays in condominiums.

However, allowing a short-term vacation rental in a condo association has several side effects. Many condo associations dislike these types of rentals because of their negative impact on the community. 

One such impact is a decrease (or perceived decrease) in safety. An increase in short-term rentals means more strangers coming in and out of the building. Long-term residents feel less safe and secure when they constantly see a stream of new faces – people they don’t know and have never been neighbors with.

The condo’s appeal to new buyers also tends to plummet when there are many short-term rentals. New buyers have a more challenging time securing financing when a condo has more than 25% of its units as short-term rentals. Lenders are more hesitant to finance purchases in these communities because there is a greater risk of financial instability.

Do Condos Allow Short-Term Rentals?

Although short-term rentals have clear negative effects on condos, they increase tourism and allow owners to earn extra income, but there are benefits and pitfalls. However, whether or not a condo association can allow short-term rentals depends on state laws and the governing documents.

Some states have stringent laws regulating what condo associations can and can’t do, including prohibiting short-term rentals. As such, condo boards should first look to their state and local laws to determine what action they can take.

In Florida, condo boards can generally restrict short-term rentals in condo associations. However, according to Section 718.110(13), amendments restricting condo short-term rentals work differently.

Here is the provision:

“An amendment prohibiting unit owners from renting their units or altering the rental term or specifying or limiting the number of times unit owners are entitled to rent their units during a specified period applies only to unit owners who consent to the amendment and unit owners who acquire title to their units after the effective date of that amendment.”

Apart from state laws, condo boards should also refer to their governing documents. The condo’s bylaws and CC&Rs, in particular, may contain provisions prohibiting or restricting short-term rentals in the community.

How to Enforce Condo Short-Term Rental Restrictions

Dealing with short-term rental in condo associations can come as a challenge. However, armed with the right knowledge, any condo board can handle their vacation rental problem.

Here are the steps to take to enforce condo association rental restrictions.

1. Enact a Policy

If a condo association allows short-term rentals to some degree, it will need a comprehensive policy outlining all the requirements and restrictions. However, if it intends to ban all short-term rentals, it will likely only need a less detailed policy.

When crafting a short-term rental policy, it is important to include the following information:

• If owners are required to provide rental information to the board or community manager, including the duration of the rental, start and end dates, and tenant information
• Whether the association will charge a short-term rental fee or other fees
• Any rules that apply to short-term renters
• Fine policies if a renter or unit owner violates the rules
• Occupancy limits

Additionally, the condo board should make it clear that the behavior of the renter falls under the responsibility of the unit owner or landlord. As such, if a renter violates the rules, the owner will have to answer for it.

2. Have a Rental Agreement

One of the most important short-term condo rental conditions is requiring landlords to have a rental agreement. This agreement or contract should outline all the pertinent information about the rental, including a statement that the renter must follow the association’s rules. Renters must sign this contract to signify their agreement.

3. Manage Rentals

Managing short-term rentals can be difficult, especially for larger condo communities. To make things easier, condo boards can use online management tools to create distinct profiles, track rentals, and tag violations. Such tools also let condo boards send the rules directly to the tenants.

Alternatively, a condo board can hire a condo management company to handle this task. Community managers usually have access to the right platforms and resources to make rental management smoother.

4. Enforce Using Penalties

It is not enough to simply have rules and restrictions. If a condo board wants to ensure that owners follow these rules, there should be penalties for violations.

The short-term rental policy must specify what penalties owners potentially face. This includes fines or other consequences, such as temporarily suspending renting privileges. Condo boards should amend their governing documents to include this policy.

Furthermore, condo boards should enforce the policy uniformly and consistently. There is no room for bias or selective enforcement. Board members should also follow proper enforcement procedures to avoid claims of invalidity.

Navigating Short-Term Rental in Condo Associations

Short-term rentals clearly negatively affect condo communities, which is why many boards restrict them. Restrictions, though, should still comply with state laws and the governing documents and be reasonable. A condo management company can assist boards in navigating the ins and outs of short-term rental rules.
Freedom Community Management provides condo management services in Florida. Call us at 904-490-8191 or contact us online to learn more!

Condo property manager responsibilities can vary depending on the type of agreement the association has with the management company. However, they typically include wide-ranging duties covering operations, financials, projects, communication, conflict resolution, and legal compliance.

Understanding Condo Property Manager Responsibilities

A condo property manager is someone who professionally manages condominiums or condo associations. They can be third-party independent contractors or employees of a condo management company. The condo board is responsible for hiring the manager or management company.

The responsibilities of the condo property manager are similar to those of an HOA manager. However, condominiums are structured differently than single-family detached homes, so some responsibilities are more specialized.

Furthermore, the condo board works with the manager to determine their responsibilities. Some condo communities only need the bare minimum services, such as administrative work. However, other communities need full-service management, encompassing all aspects of condo management.

What Does a Condo Property Manager Do?

As mentioned above, the exact responsibilities of a condo manager depend on their agreement with the condo association. That said, here are the typical duties that make up the role of a condo property manager.

1. Operations Management

Part of the condo property manager’s job description is operations management. Condo managers must ensure that day-to-day operations run efficiently and effectively. This includes overseeing maintenance and cleaning, checking the functionality of facilities, and keeping a record of all completed services.

Additionally, the condo manager is responsible for consistently enforcing condo policies and rules. This can include inspecting the property for violations, reporting them to the board, and facilitating the violation process.

Security and safety are also essential to operations management, especially for private condo communities or gated subdivisions. The condo manager ensures these aspects – hiring security guards, implementing safety measures, and checking safety devices.

The condo manager can keep the community safe and running smoothly through consistent operations management. They can also identify and remedy issues before they worsen.

2. Financial Management

Financial management is one of the chief condo management responsibilities. An association’s finances are critical to ensuring the success of the community. Managing the condo’s funds is essential to a condo manager’s duties.

The condo property manager helps the board prepare the annual budget and ensures that operational budgets remain green. The manager is also responsible for collecting condo fees from unit owners and handling delinquencies, which are the lifeblood of a condo association.

In addition to this, the condo manager assists the board with reserve fund management. Many condo associations are required to maintain a reserve fund. In Florida, state law mandates that condo associations fund their reserves. Effective December 31, 2024, condo owners may not vote to forgo reserve funding or provide less funding than necessary.

Condo associations must also prepare financial statements per Florida law (Section 718.111(13)). Unfortunately, most condo boards have no idea how to do this. Condo property managers can help with this, too, including tax filing and preparation. 

While financial management is part of a condo manager’s repertoire, the board still controls the association’s finances. The manager simply assists with financial management and does not make the decisions.

3. Project Management

Project management plays a big role in condo property manager duties and responsibilities. The condo manager continuously handles various projects, including ongoing and upcoming ones. Most board members don’t have adequate time to dedicate to these projects, so the condo manager oversees most of the work.

The condo manager is responsible for hiring and coordinating with vendors, overseeing maintenance and repairs, supervising construction work, and purchasing new equipment. Of course, each project is different, so the level of involvement and the services necessary can change from one to another. 

4. Conflict Resolution

Conflicts are a normal part of any community. Residents and board members have differing personalities, views, and opinions, so disagreements and disputes are understandable.

Condo managers also prove essential in this aspect of managing associations. One of the primary condo property manager responsibilities is assisting with conflict resolution. Conflicts can be simple or complex. Most of the time, the board lacks the expertise or experience needed to resolve these problems.

Condo property managers can handle conflicts between neighbors. These conflicts can vary, but they usually involve noise complaints, pet issues, parking disagreements, and even property boundaries. If either party breaks the rules, the manager must implement enforcement action.

However, conflict can also arise between board members or between homeowners and the board. In such cases, the condo manager must attempt to resolve the dispute using internal measures. If these fail, the condo manager can mediate or arbitrate. The objective is to avoid disruption within the community and prevent escalation to court.

5. Communication

Communication is one of the irreplaceable condo property manager responsibilities. The condo manager is tasked with communicating with residents and the condo board and serves as a liaison between community members.

Condo managers must listen to residents’ concerns and complaints and, if possible, address them within their power. Often, managers must take the issues to the board for further discussion and action.

Communication responsibilities include sending notices, making announcements, and posting updates through various channels. Condo managers can also help with scheduling and facilitating board meetings.

Open communication is essential to have a harmonious community. It helps keep everyone on the same page and promotes transparency.

6. Legal Compliance

Condo associations must adhere to state laws and their governing documents. Board members, though, aren’t always aware of these laws, provisions, and regulations. This often results in noncompliance, which can carry both legal and monetary penalties.

A condo property manager can assist boards with legal compliance. They can ensure that the board and association follow the law and the condo’s rules to the letter.

A Clear Benefit

Condo property manager responsibilities range from simple communication to more complex project management tasks. One thing is clear, though. Condo boards can greatly benefit from hiring a condo manager to help with daily operations. Board members don’t always have the time and experience to complete these tasks. With a condo property manager, the board can delegate them and receive proper guidance.

Freedom Community Management provides condo management services in Florida. Call us at 904-490-8191 or contact us online to learn more!

Condo association management helps ensure curb appeal and protect property values. Condominiums would benefit from hiring a professional company that specializes in this service. In doing so, they can facilitate smooth operations and preserve the community’s financial health.

What is Condo Association Management?

Condominium management is the practice of overseeing the day-to-day operations of a condo association. This includes managing typical areas, maintenance and repairs, enforcing community rules, and managing finances.

While the condo board—consisting of volunteer unit owners—is primarily responsible for condo property management, many communities hire a professional management company for the job. A condo association management company helps the board carry out its duties and acts as an intermediary between the unit owners and the board.

Condo association management ensures that all aspects of the community run smoothly. From administrative tasks such as record-keeping and meeting coordination to more hands-on duties like property maintenance and emergency response, the management company plays a critical role in the condominium’s overall functioning.

Condo Association vs HOA: What’s the Difference?

While condo associations and homeowners associations manage residential communities, the two have critical differences. 

Condo associations typically manage multi-unit buildings where residents own their individual units. However, these residents share ownership of common areas like hallways, lobbies, and amenities. They can also share ownership elements such as balconies, interior walls, and roofs.

HOAs, on the other hand, usually manage single-family home communities where residents own their homes and lots outright. However, these residents share ownership of community amenities like parks and swimming pools. They don’t typically share the walls and roofs of individual homes, too.

Condo associations often have more responsibilities due to the shared nature of building infrastructure and facilities. This makes condo association management more complex and specialized than HOA management.

What Are the Responsibilities of a Condo Management Company?

The exact responsibilities of a condo management company depend on the services it offers and the agreement it enters with a condo community. Some communities only require bare minimum services, while others seek full-service management services.

That said, condo management companies typically have the following responsibilities:

1. Maintenance and Repairs

One of the primary responsibilities of a condo management company is overseeing maintenance and repairs. This involves regular inspections of common areas and building infrastructure to ensure they are in good condition. The management company coordinates maintenance requests from residents and hires the appropriate contractors to complete the job.

2. Accounting and Financial Reporting

Financial management is a critical aspect of condo association management. While specific financial services can vary from one company to another, they usually include the following:

• Budget preparation and management
• Bank reconciliation
• Upkeep accounting records
• Financial statement preparation
• Reserve fund management

3. Fee Collection

Condo fees are the lifeblood of any condo association. As such, it is important to collect them in a timely manner. A condo management company can also help with this.

Condo management companies send owners invoices and offer them flexible payment options. They also work to minimize delinquencies within the community by enforcing strict collection policies. This includes sending reminders, setting up payment plans, and, if necessary, initiating legal actions to recover unpaid dues.

4. Rule Enforcement

Another responsibility of a condo management company is to enforce community rules and regulations consistently and fairly. This involves tracking violations, notifying residents of infractions, and following up to ensure compliance.

Violation penalties can change from one community to another. These can include fines and the temporary suspension of privileges. In Florida, though, a condo association must provide notice and allow the owner to appear at a hearing before it can take disciplinary action (Section 718.303(3) of the Florida Condominium Act). 

5. Dispute Resolution

Condominium associations are no strangers to conflicts within the community. While the condo board can attempt to resolve the dispute, such situations usually call for third-party neutrals. A condo management company can exercise internal dispute resolution and even employ mediation or arbitration strategies to avoid litigation.

6. Board Assistance and Education

Effective communication between the management company and the board of directors is vital for the smooth operation of the community. The management company regularly updates community operations, financial status, and any issues that need board attention. They also assist in organizing and facilitating board meetings, ensuring that all necessary information is available for informed decision-making.

In addition, a condo management company often provides training and education for board members. This helps them understand their roles and implement the best practices in community management.

7. Resident Communication

Another responsibility of a condo management company is resident communication. This includes providing residents with a way to give feedback or make complaints, sending them timely notices, and keeping them in the loop on important issues.

8. Legal Assistance

A condo management company is well-versed in federal, state, and local laws that can affect condominiums. It can advise the condo board on legal matters, ensure compliance with the law, and help in amending the governing documents, among other things.

How Much Are Condo Association Management Fees?

The cost of condo association management services can vary widely based on several factors. These include the size of the community, the level of services required, the nature of the facilities, and the location. 

Typically, condo management companies structure their fees as a flat monthly rate per unit or a percentage of the association’s monthly budget. This equates to $20 to $50 per unit per month or 5% to 10% of the budget. Board members should review the management contract carefully to understand the fee structure.

What to Look for in Condo Association Management Companies

When selecting a condo association management company, an association should consider the following qualities:

• Experience and Expertise. The board should look for a company with a proven track record in managing condominiums and a deep understanding of the unique challenges.
• Range of Services. The board should ensure the company offers comprehensive services that meet the community’s needs.
• Communication Skills. Effective communication is crucial. As such, it is best to hire a company that prioritizes clear, consistent, and transparent communication with the board and residents.
• Technology and Tools. A modern management company should offer online tools for maintenance requests, payment processing, and access to essential documents.

The Final Word

Condo association management is essential for the successful operation of condominium communities. In understanding the responsibilities involved and what to look for in a management company, condo associations can ensure they choose the right partner.

This is where Freedom Community Management comes in. Call us today at 904-490-8191 or contact us online to learn more about what we can do for you!