Why state licensing for property management companies is good for you!
In formal classes the HOA industry money makers (property management companies and attorneys) seem to smirk/smile when they say “but ultimately the Board is responsible for everything.” Note, the HOA attorney is in a lobby group with the property management companies which then work to keep themselves self-governed and unaccountable. This is not in the best interest for you or your fellow homeowners. It’s an obvious conflict-of-interest.
The whole idea behind Homeowners Associations is to address neighborhood problems caused by bird-brained homeowners. As we all know, in actual practice many HOAs cause more problems than they actually solve. When one neighbor is pitted against another, pride gets in the way and stupid things start happening.
But stupid neighbor fights happen in non-HOA neighborhoods, too. An ongoing case in Seattle has now led to a $200,000 lawsuit.
Several years ago, a young girl began feeding the crows in her backyard. The crows began bringing trinkets to the youngster, and a YouTube video of the feeding ritual went viral.
Barry Levinson, a disbarred attorney who was one of the top figures in the massive Las Vegas HOA scam, has died while in federal custody. Now his lawyer is planning to sue the prison system for medical negligence.
The federal HOA investigation was the first of its kind in the country. Forty-two people were convicted, but most were given very light sentences. Officially, about 20 million dollars was stolen from residents in Las Vegas HOAs. But because of the collapse in value of all Las Vegas real estate the impact of the HOA scam rises well above 100 million in losses.
When buyers consider a condominium association, they are often sold on a “carefree, maintenance free” lifestyle. There are promises that someone else will take care of the landscape, cleaning the sidewalks and parking lots, and most exterior maintenance. It can be very enticing for busy professionals or retirees who don’t have the time or inclination to do the work themselves.
But the reality is that, when you buy into a Association-Governed Residential Community, you are actually purchasing shares in a corporation. And the truth is, all too often that corporation does not perform optimally. There are no guarantees that the developer or owner controlled Association board will operate with efficiency or fairness. Even with the best of intentions, mistakes happen. And sometimes the Board neglects its duties.
