Monday, 17 March 2014


Cost-per-unit or Pricing Worksheet
Condominium and cooperative  management fees can be calculated using either the cost-per-unit method or the pricing worksheet explained in chapter 9. Condominiums and cooperatives that contract only for an accounting or consulting service can be charged a minimum fee, but there should be an additional charge for attendance at more one board meeting per year.
With the per-unit method, a surcharge should be added for the additional time spent satifying a board of directors or an owners’ association. The manager should also charge additional fees to cover the time expended on other specified duties such as attending board or association meetings or developing a newsletter for circulation to stockholders or owners.
Flat fees
 There is a compelling reason why the management figure should be a flat fee rather than a percentage of gross income, as is used for residential apartement fees. A percentage fee gives the residential manager incentive to raise rents and thereby gain extra profit. The revenue from cooperatives and condominiums comes not from rents but from monthly assessments to cover operating costs. Managers who contract for a percentage fee profit more by allowing operating costs to skyrocket because this increase the monthly assessments (total revenue) and therby, the percentage management fee. They also profit from increases in the real property taxes and reserve funds.
Because a percentage fee would place the owner and the manager in opposite camps, a flat fee should always be used when dealing with condominium and cooperative properties. In general, the manager also should quote a fee slightly higher than that on the estimate because any increase in the management fee will have to come from negotition with the board or association, at which time competitive bids will usually be solicited.
Many condo and co-op units are not owners-occupied. Serious problems may arise if tenants are not carefully qualified or do not follow association mandates.
Rental may be handled individually by the owner, by a third-party manager, or by or through the owner’s association, either on an individual unit basis or as part of a rental pool. Under a pool management, all rental income from all units. In the condominium is placed in a fund that is shared equally after management expenses. Thus, an owner with a unit that may not be attractive to prospective tenants can be participate fairly with units for which there is higher demand.
In  any event, the apartement rental principles discussed in chapter 11 are applicable to renting condominiums and cooperatives. The only real difference is that the association declaration,bylaws, and resident rules and regulations take precedence over the terms of the lease. For this season, a manager should secure legal assistance in drafting a clause, which should appear in each lease: Tenant occupying (the owner’s unit) acknowledges that the premises and rules and regulations. A copy of these documents has been furnished to tenant. Tenant aggrees to abide by these rules and regulations. Tenant understand that violation of any of them may be grounds for eviction.
Manufactured homes (formerly referred to as “mobile homes”) have changed a lot over the years. They are no longer trailer houses being pulled down the road or rusting exteriors next door to an automotive dump. However, these images have been hard to overcome. Today’s manufactured home is efficient, practical, and affordable housing for 8 percent of americans. Some are even luxurious.
Today, the manufactured home park is a combination of individual home ownership and homesite rental. It is usually an orderly, well groomed entity and sometimes is indistinguishable from a more traditional development. Once the manufactured home has been moved to the site, most are never moved again, as their value comes from the desirability of the community.
Inexpensive Hounsing
Manufactured housing can be purchased for far less than it costs to build a traditional home. This is appealing to those with lower incomes, including the elderly on fixed incomes. Today’s manufactured home is larger than ever before; 83 percent of the manufactured homes have three or more bedrooms, and the average single-wide has been growing in size more than 2 percent per year. More than 1 million Californians live in manufactured homes and there are more than 2,000 manufactured home parks in New York state.
Near-Elderly Housing
Under the Fair Housing Laws, certaint housing is exempt from the law requiring access to housing by families.with children. The U.S Departement of Housing and Urban Development (HUD) defines “near elderly” as 55 and older and “elderly” as 62 and older. Once a community qualifies for this designation from HUD, it can refuse to rent to anyone with children, and many manufactured home parks do just that ; in fact, some even market themselves as housing for the elderly. Marketing to these folks is financially sound: near-elderly ages 55 to 64have the highest per capita income, and seniors age 65 and over have the most discretionary income.
Role of the Property Manager
Manufactured home park management requires a combination of the skill of managing apartement communities with those of managing condos and co-ops. A common task is making sure thatthe tenants clearly understand the rules and regulations of the park community. If the park consists of rented manufactured homes, then the manager collects rents for the units. In other sitations, the home is owner-occupied, and the manager collects a rental fee for the site.
The duties of a property manager vary widely depending on the typeof park being managed. In some communities, managers will do little more than show space, collect rents, and prepare reports for the owner. Those managing “seniors” parks will no doubt perform these traditional duties in addition on scheduling community events that involve many of the members. In fact, creating and inspiring a community feeling is one of the best ways to foster referrals and waiting lists.
In any event, the manager generally is charged with minimally maintaining the value of the park, and often with increasing the value by improving condition and appearance. Every attractive, well-maintained property will attract sound tenants and sell for a higher price when put on the market, even when compared with a poorly maintained park bringing in the same amount of income.
The manager may be directed to track other sources of income from laundromats, vending machines, convenience stores, and the like. Computer software can help greatly. Anyone specializing in mobile park management should consult Managing Mobile Home Parks, a book published by the Institute of Real Estate Management (IREM).
Actual construction and operation of public housing for low-income families has traditionally  been the responsibility of local govermments. In 1965, Congress authorized the U.S. Departement of Housing and Urban Development (HUD) to provide financial assistance to local housing authorities for the acquisition and operation of existing buildingor privately constructed new housing for low-income tenants. Under the 1968 Housing and Urban Development Act, the Federal Housing Administration (FHA), an agency of HUD, was authorized to encourage private participation in the development and construction of housing low-income families through rental and mortgage insurance programs. FHA-insured mortgages and govermment subsidies were awarded to nonprofit cooperative groups for the construction of low-income housing.
Harry Potter - Golden Snitch