Florida has suffered through a serious real estate recession in the last 6-years. Some neighborhood delinquency rates on association maintenance fees have more than tripled. When that happens, the homeowners (the payers) that do pay, have to pay more for the homeowners that don't pay (the non-payers). In addition, the association (the payer) has to pay to attorneys (the payees) more to seek collections from the non-payers. In my experience as owner of a managing company, attorney hourly rates have increased by more than 20% during this 6-year period.

In an attempt to help solve these problems, most management companies have done the following:

1. 1. Reduced their monthly management fees to associations by more than 20%.
2. 2. Charge a transactional fee to the association for additional work related to collections.
3. 3. Attempt to pass on this collection fee to the responsible party (the non-payers).

This maneuver has helped associations with their escalating attorney costs keeping their maintenance fee increases to a minimum. Now certain attorneys want to restrict what a management company can collect on transactions by calling what we do the unlicensed practice of law or placing a limit to that charge.

The potential impact is as follows:

1. 1. Management companies will have to go back to charging the associations (the payer) more monthly management fees.
2. 2. The association (the payer) that has a management agreement in place with these additional transaction fees for collections will not be reimbursed for these charges because the attorneys (the payees) were successful in placing a limitation on what the association could be reimbursed for.
3. 3. If the management companies don't do the work, the attorneys (the payees) can and they will of course charge the association (the payer) their higher fees.

The end result is the payer and payers pay more, the non-payers pay less and the payees get paid more. That doesn't make much "cents".

Condominium Associates began managing condominium and homeowner associations in the Tampa Bay area in 1982 and presently has offices in Pasco, Pinellas and Hillsborough counties. Condominium Associates is a full service association management company providing services in the areas of facilities management, financial management and administration.