Category Archives: Duck Dynasty

AirBnb, A Weird New Phenomenon

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I’m biased on this subject. I have to say that out front. For many years I owned two small condos in Vail and Beaver Creek which my agent leased out to skiers on a long-term AND a short term basis. The rents were the only thing that allowed me to financially own the two properties. And they were always available to my families during ski season and during the wonderful Vail summers.

Good experiences, and bad. I did get stuff stolen. I did have the two apartments trashed. In absolutely every case the damage was done by long-term tenants. The short-term tenants were respectful of my belongings and my interior improvements and they never cost me a penny in damage. Long-term tenants were a nightmare. They stole furniture, bed sheets, draperies, silverware, you name it.

So when AirBnb came along, providing homeowners with a way to provide housing for short-term guests I was all for it. ALL FOR IT! In my experience, temporary short-term guests were more respectful, more responsible, and they helped me pay for two condos I couldn’t otherwise have afforded. And during all those years of ownership, I never once got a complaint from management. AirBnb makes sure all clients submit references and they’re constantly monitored by the service to weed out travelers or homeowners who don’t follow the rules.

Oh, but those nasty HOAs are trying to put their fists where they don’t belong. A couple in Denver’s Baker neighborhood have hoisted a banner demanding an end to the AirBnb service. And the City of Boulder has issued a couple dozen cease and desist orders against homeowners who use AirBnb to lease out their homes.

Idiocy. Absolute idiocy. If my experience is any example, you definitely DON’T want to lease your home to long termers. Those travelers who stay there just a few days are the most respectful tenants you’ll ever meet.
But maybe that’s just me.

(link to Denver story on couple trying to stop AirBnb)

 

Now for the Pro-HOA Side!

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In fairness, shouldn’t I once in a while run a post involving someone who’s all in favor of HOAs? Don’t hate me, but here it is. I imagine a number of readers of Neighbors At War can pick this one apart feather by feather and nut by nut!

(link to Hignell HOA Management Company)

 

Blossom Park Condo in FL plagued by crime, drugs, and multiple code violations

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guest blog by Deborah Goonan

This is the fate of a 1970s motel, converted to condos in 2003. By 2010, this low-rent condo hotel was in Receivership. Almost all of these units are leased to tenants, but apparently the Association is not putting the assessments to work, or dealing with a vacancy problem.

The condo complex has been reportedly plagued by drug trafficking, especially heroin, and was the scene of three murders in 2014. Residents say they fear for their safety.

According to reports, Blossom Park Owners Association has racked up $175,000 in code violations from Orange County. The staircases were recently deemed unsafe, and 2nd and 3rd floor residents had to be relocated until repairs can be made. Elevators are also inoperable. Some residents have moved to the first floor, but if repairs are not made to the seven buildings soon, the remaining residents may face eviction.

Where is all the money going? Obviously the owners are collecting rent from tenants (listed on Realtor.com for about $600-$650/month), and at least one resident was interviewed, stating that she pays $200 per month for maintenance fees.  And the attorney receiver states there will be a special assessment to cover the cost of needed repairs and payment of fines.

This is just one example of condo blight in Florida. The question is why does the state of Florida keep allowing condo conversions? What was the logic behind approval of Blossom Park in 2003? Did Orange County really think that an old broken down motel would become an affordable haven for some lucky owners? Or did they count on 350 separate landlords screening their tenants and keeping their units maintained? Clearly, it isn’t working. Orange County has been working with Blossom Park for almost 5 years, and conditions have not improved.

http://www.orlandosentinel.com/news/breaking-news/os-orange-blossom-park-evictions-20150130-story.html

http://www.wesh.com/news/residents-asked-to-leave-blossom-park-condos-in-orange-county/31056348

http://www.orlandosentinel.com/news/breaking-news/os-blossom-park-condos-homicide-20140926-story.html

 

Outrageously One-Sided Construction Defect Litigation Proposal in Florida

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guest blog by Deborah Goonan

As we gear up for the Legislative session in Tallahassee, beginning March 3, we are starting to hear the buzz about HOA-related bill proposals.

Florida HB 78, a proposed amendment to Statute 558, is among one of the most preposterous bills I have seen. Written by and for the benefit of general contractors and design professionals, the amended version seeks to substantially reduce their liability for construction defects.

As currently written, the bill proposes that owners and Associations meet difficult and costly legal standards prior to filing the initial claim. For instance, the claimant would have to provide a complete and detailed list of each instance of every defect and cite the specific code(s) violated, plus reference all pertinent spec sheets and project drawings, among other details. Essentially, the contractors are insisting that owners or Associations undertake the discovery process prior to filing the first defect claim.

Let’s say your condo building or HOA clubhouse has numerous water leaks. It would be up to your Association to hire the necessary experts to figure out the cause or causes of each and every leak, even if that means removing drywall to get to the plumbing, or removing earth from the foundation wall to look for cracks in the concrete slab. It means your HOA would have to hire an attorney to locate all of those pertinent documents that may have gone missing during the transition process. Then the attorney would have to work with experts to complete detailed reports to attach to the initial claim.

Thousands of dollars in legal costs can accumulate before the Contractor will even consider confidential settlement talks with the HOA or owners. Of course those settlements have to be confidential, so that future buyers will never know what kind of a time bomb they intend to purchase.

And if it turns out that the owners miss some hidden defects, too bad! If a judge decides that the Association is to blame for insufficient maintenance, then the HOA would be on the hook for all of the Contractors’ investigative and legal expenses! But if the Contractor turns out to be 100% to blame for shoddy construction, there is no equivalent sanction requiring that all of the HOA’s legal costs will be reimbursed. I have included a link to a Florida attorney’s blog and the bill itself below, for any skeptics among you who might think I am exaggerating.

This is the kind of legislation that, if enacted, will ensure full employment for construction defect attorneys all over the state of Florida, or alternatively, extort owners to simply pay dearly for all of the mistakes made – and corners cut – during construction.

(link to Florida HOA Lawyer Blog critique of HB 87)

(Florida HB 87 as filed)

Just When We Thought The Condo World Could Not Get Any Worse!

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guest blog by Nila Ridings

Lately, I’ve learned quite a lot about self-storage. It’s an interesting business where investors own steel structures with no plumbing, limited wiring, concrete slab flooring, and no overnight tenants. Generally speaking the square footage rents for far more than apartment rentals and the maintenance is amazingly less. The laws that protect those who rent these spaces are far more extensive and protective of the tenant than it is for the homeowner that buys into an HOA or COA. The process to cut the lock on a tenant’s unit and sell their contents to the highest bidder is closely adhered to. In addition, when it comes to taking bids for buy-outs the employees better closely adhere to the laws or find themselves in BIG TROUBLE for bid-rigging. (See below)

Much to my displeasure, I recently discovered this new concept called, ‘Garage Condos’ where you buy in and avoid paying monthly for self-storage. Yes, you pay monthly condo fees! There is a volunteer board of directors. They can foreclose for non-payment of dues. And once again, owners are clueless as to the risks. They see the fancy clubhouse, opportunity to customize their garage space, the scheduled social events, and never think twice about signing on the dotted line.

Just when we thought the condo world could not get any worse! Here’s just another way for buyers to take more risks for losing their life’s savings. I could write a list of all the ways I see this concept failing but I’ll let time expose the truth.

The sales representative I spoke with was very enthusiastic and excited to tell me these were already being built in California and Arizona. I’m so sorry they made their way to Kansas!

On the subject of bid-rigging…can somebody explain to me why the FTC has not been riding the backs of property managers, condo takeover investors, and HOA board members? Or have I missed something?
http://kansascity.craigslist.org/prk/4845475986.html

http://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/dealings-competitors/bid-rigging

http://garagekansascity.com/kansas-city-garage-condo/