Governing Documents: Who Leads?
Each Association has Governing Documents, which layout the operations for the community and any restrictions. But did you know there are different levels of hierarchy?
– Federal, State, and local ordinances always lead.
– Recorded plat, map, or plan.
– Declaration of Covenants or CC&R’s and any supplements to this document
– Articles of Incorporation
– Bylaws
– Rules and regulations
– General Resolutions
When creating rules and regulations or general resolutions, keep in mind they cannot conflict with any document that is higher on the pyramid!
Gaughan Tech Talk: Air Conditioner Care
Now that warm weather is approaching, it’ll soon be time to turn on the air conditioner. Here are a few tips on air conditioner care so you can keep your A/C in top working condition.
- Replace the pleated air filter every 3 months.
- Remove any sticks, leaves, grass, etc. from the condenser unit located outside. Debris on the outside of the unit will drastically affect performance. (I recommend an annual cleaning by an HVAC technician.)
- To clean the outside of the unit, use a little car polish on the box; that will shine it up. On the inside of the unit, a water hose and coil cleaner are used to clean the condenser coil.
- Do not cover the condenser with a cover or tarp in the off season. This will hold in moisture.
- Indoors, check the evaporator drain line to make sure it isn’t plugged. This removes condensation from the air handler, and it must be kept clear.
- It is a good idea to change the thermostat batteries at the start of every cooling season.
These are just a few things you can do to help your air conditioner run efficiently this season.
Prepare for Summer with these Spring Cleaning Tips
It’s that special time of year in Minnesota when the sun starts to shine a little brighter, a little longer and a little warmer. Spring is here! While everyone is enjoying the weather, many are also anxious to get their home ready for summer. While spring cleaning the inside of your house is good, spring cleaning the outside is equally as important.
On the outside of your house, remove all of your holiday decorations and lights as the weather permits. One of the best components of an association is the feel of a close and well-kept community. If it applies, a good outdoor spring cleaning might include washing all exterior windows to get rid of any dirt on the outside and cleaning cobwebs off of light fixtures. Lastly, to prepare for the coming summer weather and activities, clean up the grill, wipe off all outdoor furniture, and prep the garden by tilling.
With summer around the corner, people are more likely to entertain inside, too. Now is a great time to scrub all walls and baseboards to give each room a fresh feel. Replace water and air vent filters in order to get rid of what has built up over the last year. In the same way, it’s important to clean out all faucets and showerheads of rust and calcium deposits with a water and vinegar solution. Also, remove lint from the dryer vent inside and outside. This is one good prevention against residential fires. Most importantly, test all of your smoke alarms.
For more tips on what to clean, how to clean, and what products to use, check out this article from the Today show and this article from the DIY Network.
-Sarah Crawford
Gaughan Roofing Tech Talk: Downspout Problems
Although the snow can be beautiful, Minnesota winters can cause a lot of damage to a property. Avoid downspout problems through upkeep of all gutters and downspouts. It will minimize the negative effects of winter on a property’s outside drainage system.
Here are a few upkeep tips:
- Twice a year do routine inspections of roof-to-ground downspouts.
- Inspect general operation; clean out sticks and debris stuck in downspouts.
- Check straps. Are they still secured to the wall? Are screws missing?
- Are they damaged to a point that a new full or partial downspout is required?
- Get these repaired or replaced as soon as possible to avoid other associated problems.
Commercial Real Estate Market Statistics: A Summary of 2016 and a Look Toward 2017
2016 was a hot market year for Commercial Real Estate. Thousands of new jobs were created that are having a dynamic impact on our industry and consumer spending continues to rise.
2017 is looking bright as we head into the New Year, and we are excited to see continued growth from business investments, exports, reconstruction and supply chains.
Here’s a brief look back into 2016 and a projection of what’s to come in 2017.
2016
- Third quarter results show that personal consumer spending rose at an annual rate of 2.1 percent. Most of the spending was on goods and services.
- Export activity increased, which means that companies are coming closer to their goal of serving global markets.
- Business investments are up by 5.4 percent. Owners are interested in growing their businesses and are willing to take more monetary risks right now.
- 619,000 jobs were created. Of those, 28,100 were in warehouse employment. The retail sector added 51,200 jobs and the wholesale trade industry gained 18,300 jobs.
- Demand for industrial properties rose, while older properties such as malls and community centers often remained empty.
- Office and retail space building and leasing remain stagnant as business owners are turning their attention to industrial space.
2017
- The national unemployment rate is under 5 percent. This will allow companies to be more profitable since they have enough workers to commit to their production lines and run their office operations. Low unemployment rates also benefit every other industry because these individuals will keep buying goods and services, in turn, balancing out the old economic scale of supply versus demand.
- There will be a small increase in the need for apartments and senior housing as millennials and baby boomers seek to settle into properties that are not single family dwellings.
- An increase in the need for retail and office space is expected, as business owners take more risks and add products and services to their offerings.
- Investor spending by business owners located outside of the U.S. is expected to increase due to the low lending rates and new opportunities afforded them in this country.
- Old malls and dated commercial properties will be re-purposed, turning into classrooms, last mile supply warehouses, expanding city government offices, and possibly new places for entertainment such as kid’s play zones, bowling alleys, and other family-oriented entertainment centers.
- Lower energy prices will continue to be a factor as companies are able to spend less on operations and more on bringing products and services into an area.
Although 2017 seems brighter, there is still work to be done in each community in order to fully restore economic prosperity. Gaughan Companies is excited for these new opportunities, and we look forward to working with you to meet all of your commercial real estate needs.
-Patrick Gaughan
Employee Attraction and Retention Tools
We all know someone who loves or hates their workplace. Every day, thousands of workers quit one job only to rush to another one for any number of reasons. Let’s take a look at what companies are doing to attract and retain talent.
Most people think of money when they consider a new job. Questions often pondered are, “Will this increase in salary improve my living conditions,” or maybe, “Will this new salary be enough to support a move to the neighborhood I’m eyeing?”
Although salary is a huge draw, there are many other things that companies are using to lure the best talent. After a prospective employee is decided upon, the company will consider where that future employee is currently living. If he or she isn’t within an hour’s drive of the office, it’s time to consider a relocation package.
A good relocation package will pay for a percentage of closing costs on both the old home and the new one. It will often pay for movers, and if the employee needs to report onsite before his or her family can arrive, then the company may also pay for temporary housing.
In addition to these items, a company needs to consider the overall health and well-being of the employee. Paid time off, offering good medical insurance, dental and vision, short and long term disability plans, profit sharing and 401K plans should be part of each company’s benefits package.
Some companies are large enough to include a workout area in their plaza. Others may staff this area with health and fitness promotion workers who can offer suggestions for diet and workout programs in order to improve the health of the employees.
After the employee is acclimated to the new job, a challenge lies in trying to keep the employee happy at work. A good company recognizes that their workers are human and that things come up, such as having a child get sick or repairs needing to be done at home.
Flex time or telecommuting is a nice plus. Some employees can’t always be at the office from 8-5. If management can offer a small flex work or telecommuting schedule, the employee can still see to his or her personal needs without having to call in or take a personal vacation day.
Having a great relationship with an immediate supervisor and manager is key to an employee’s happiness. A good company will empower an employee to make certain business decisions up to a point. If a supervisor needs to have the final word, then it’s important that this person be accessible whenever needed. It’s also important that the supervisor supports the employee when dealing with other in-house departments and the public.
In addition, the best companies go a step further and reward employees who put forth their best efforts. If an annual bonus is offered, it is often based on performance review. A good company will hold weekly one-on-ones between supervisor and employee so that the employee understands how well he or she is doing in the position.
Besides an annual bonus, a company that focuses on employee retention may also have programs such as internal recognition or employee recognition day. These companies also realize that if it’s possible to promote within, then they should do so. Otherwise, their employees may feel that they’ve been overlooked and will want to head for another place where they will feel appreciated.
Finally, continuous improvement is another effective employee retention tool. A company may offer to pay a part or the entirety of classes at the college level that will aid a worker in his or her job. The company will also offer in-house training and some will even give workers a chance to take classes on-site or intern in other departments for a few weeks.
Changing jobs or keeping the one you have is always challenging. Everyone wants to make sure that he or she is getting the most value in exchange for his or her efforts. The best companies will recognize and respond to this and will go out of their way to promote employee retention. As a result, their bottom line looks great and their workers are happy, which creates a positive workplace.
Gaughan Companies is committed to building strong communities and creating good relationships within those communities. That includes our workplace. Our core values are honesty / integrity, priority focused / accountable, positive / solution-based, strong communication, and hardworking.
-Patrick Gaughan
HOA Board of Directors: A Volunteer
If you have ever served on your HOA’s Board of Directors, you can understand the amount of time and effort that goes into preserving your neighborhood and protecting community property values. A long time House Speaker once said, “All politics is local.” With that said, what could be more local than a democracy practiced within the community you live?
Today, there are approximately 68 million Americans living in about 338,000 homeowner associations, condominiums and other planned communities. More specifically, there are about 1.5 million residents and about 7,500 associations here in Minnesota! Needless to say, the amount of volunteers needed for associations in Minnesota is about 30,000 dedicated owners.
A volunteer can be described as a person who freely offers to take part in an enterprise or undertake a task. The key to this definition is freely. For many of the volunteer board members, this is a second job that takes time from their families, evenings and/or even their weekend. Many times, if something doesn’t go as designed, fingers are first pointed at the Board of Directors, but often it can also be a lack of communication when an owner buys into a community or misinterprets the association’s governing documents. Generally, one of the great attributes of being a volunteer is reliability, so being there for owners when called upon can show a great deal of trust and commitment to your community.
A board member’s job can be full of challenges, issues and opportunities, some of which can be controversial. As a board member, the role can be both rewarding and thankless. If given the opportunity, please share a simple note of thanks to your board members. It could be at the next board meeting, annual meeting or in a simple e-mail. Chances are, as you are settling in for the evening for your favorite home remodeling show or to catch your favorite sports team in action, your board members are enduring a 60 to 90 minute board meeting, reviewing the upcoming budget, looking at additional bids, or reviewing pending architectural change applications. Most board members have a great deal of integrity as there is a big responsibility with the community’s resources, facilities and homeowner correspondence.
For more information on how to become a board member, how Gaughan Companies can help your community, or for general questions in regard to your community and/or Board of Directors, please visit us at www.gaughancompanies.com/hoa.
CAI-MN has additional resources, too.
Rising Cost of Insurance Coverage
Rising Cost of Insurance Coverage As we start to put 2014 in the rear view mirror and look ahead to 2015, there is still some questions homeowners have in regards to the rising cost of association dues. Why do your dues seem to increase each year? What is this increase paying for?
One of the largest contributors to the recent increase in association dues is related to the significant increase in insurance costs. This is in no way a reflection the association’s insurance agent, but more on our own state. Minnesota has been one of the top three catastrophic loss states three of the last seven years. This has generated some red flags from the multifamily insurance group.
One of the largest storms to hit Minnesota recently was August 6, 2013. This storm came through much of the Twin Cities metro area, but most of the severe weather was in Eden Prairie, Eagan, Edina and Minneapolis. This storm alone caused an estimated $800 million and likely more! Both 2007 and 2008 also went over $1 billion in metro storm losses while 2008 reached $1.5 billion.
As an insurance carrier reviews a potential policy for a homeowners association many of the mentioned facts and history come in to play when offering coverage. This has increased the premiums for many carriers and even pushing some carriers to no longer offer property insurance in Minnesota.
Summer storms are bad enough, and now you have to factor in that severe weather has extended to the winter months as well. Severe cold temperatures has caused a large number of frozen pipe claims in the metro area. We have not even mentioned the damaged caused by a number of ice dam claims that are on the rise.
Hopefully the number of claims will slow, along with the severe weather, and the cost insurance coverage will also begin to slow down.
If you would like further information in regards to some helpful insurance tips please e-mail us at hoa@gaughancompanies.com. For all of your association needs you can check out our web page at www.gaughancompanies.com/hoa.
David Bruneau, CMCA Corporate Association Manager
