HOW WILL YOU PREPARE?
By
Rafael Aquino
Published May 18, 2022
This year has turned out to be interesting thus
far, and we still aren't even halfway. The overall market has seen
losses this year, the cost of all goods and services continues to
skyrocket, and salaries can't keep up with these changes. We've seen
years of growth; however, the tides are turning, and your
association needs to be ready. What steps is your association taking
today to prepare for what is to come?
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Accounts
Receivables - If you aren't doing so already, your
association should be following the collection policy outlined
in your documents, and you should waiver one bit. Those
associations that have been lazy with their collection policy
will pay the piper when the market starts to crash because
they'll be trying to play to catch up.
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2023 Budget: Budget
season will soon be approaching, and your association should
consider reintroducing a "Bad Debit" line item to your upcoming
budget. Remember your association is a nonprofit organization,
and if the owner stops paying, the rest will need to cover the
difference.
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Reserves -
Most banks have gotten smarter with their questionnaires,
following what Fannie and Freddie are doing. They ask if
associations have reserves and what steps the association has
taken to ensure the condos they are lending to are safe and have
the proper means to make repairs if necessary. Suppose you are
an association that doesn't have reserves. In that case, I
strongly recommend you consider putting a minimum of ten percent
of your operating budget into reserves, so your building is
marketable.
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Amendment 2 -
Amendment 2 is in full effect, and the minimum wage over the
next few years will be $15.00. This will dramatically impact
many associations because labor is one of the most significant
line items on a budget. The areas of service that will feel the
most impact will be landscaping services,
janitorial/maintenance, front desk, & security services. Your
association should be preparing now and consider increasing the
staff pay earlier to avoid staff members leaving sooner.
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Communication
- As a Board, you have tough decisions that need to be made;
however, you must communicate with your residents about the
potential impacts they should expect. The last thing you want to
do is blind slide all the residents with an unexpected increase.
Doing it in that fashion will create an environment that won't
allow for the needed change. The earlier you work with
management to communicate the future of the building and the
impacts of the market, which you can't control, it will make it
a bit easier on all.
We've all enjoyed several years of being in the
sky; however, now is the time to buck up and prepare. You should not
panic; you need to prepare. Life is ten percent what you experience
and ninety percent how you respond to it.
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As the Co-Founder and CEO
of Affinity Management Services, Rafael P. Aquino leads his team to
redefine excellence. They serve community associations
efficiently |
and effectively with
dedication and passion. Rafael’s energy and positive
spirit is the foundation of Affinity Management
Services’ company culture, which instills enthusiasm and
excitement when providing expert advice to its board
members and relieving the day-to-day burdens of running
a community association.
Since 2007, Rafael has
developed a work culture that values responsive and
high-quality services. He has led his team by following
a proactive vs reactive philosophy. The same approach
Rafael instills in the day to day operations of each
association. Today, Affinity Management Services
maintains its success and benefits as a result of the
foundation Rafael has built and continues to foster by
providing educational seminars, continuing education
classes for association managers and board members
alike.
Rafael and his team help condominium and homeowners’
associations save money and improve their communities.
His calm, personable, and service-oriented nature helps
him to establish strong relationships with ease. Rafael
is known as a sincere and honest leader who looks out
for the best interests of his clients and communities,
and he strongly advocates for their needs. His role
requires coordination and communication, as such he
takes logical and intelligent steps to approach
challenges head-on.
As a graduate of Florida International University’s
electrical engineering program and a licensed community
association manager, Rafael’s education and skills equip
him with unique insights to tackle complex problems
through critical thinking. He understands how each
component within a system works together in order to
effectively arrive at solutions, techniques, and
conclusions. Therefore, as he manages the multiple
challenges of running a community association management
company, he understands how each property is its own
unique system and tailors’ specific services to assure
that all their needs are met.
For more information about Rafael P. Aquino and Affinity
Management Services please visit
www.ManagedByAffinity.com or call 1-800-977-6279
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Doral Office: 8200 NW 41st ST
Suite 200
Doral, FL 33166
Broward Office: 150 S Pine Island RD Suite 300
Plantation, FL 33324
O: 800-977-6279 ● F: 305-325-4053
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