Las Vegas HOA Management: Why Your Association Needs Professional Management

There’s a lot more to managing a community association than you may realize.  Managing a Las Vegas homeowners association is more than just community management, it’s about compliance with state laws, your governing documents, licensing requirements, enforcing rules, conducting elections and so much more.

Having a professional management company for your HOA takes the pressure off of you as a board.

Your home-ownership interest in the community and its common elements is possibly your largest asset.  However, being a board member is a huge responsibility all by itself, let alone trying to manage all aspects of your community without the assistance of a professional management company and a knowledgeable, trained community association manager (CAM). What about the cost of hiring a professional management company?  We understand that financial hardship may be a big hurdle that keeps you from taking the next step towards professional management, especially given the current economy and possible high number of delinquent homeowner accounts but consider all that a professional management company and CAM can do for you and your association.

• Professional managers must go through continuing education courses in order to be a licensed manager in the state of Nevada, which includes Nevada laws that govern your Las Vegas HOA (NRS 116).

• A professional management company typically have a number of staff members to assist with the day-to-day operations of the association that must have a working knowledge of finances, accounting, budgets, taxes and insurance requirements to name a few.

• Your community manager and management company would have strong personnel management and communication skills which could aid the board in hiring and supervising contractors and staff for your community. Communication with the residents on the part of your community manager is also a major relief for a board.

• Community managers are trained and have a keen understanding of proper preventative a regular/ongoing maintenance of a homeowners association such as landscape repairs and replacements, upkeep of the facilities and regular mechanical maintenance.

• Most importantly, a professional community manager and management company are in place to coach and assist the board in many ways. They help conduct inspections, prepare for and conduct meetings and ensure compliance with the associations governing documents to name a few.

If you have any questions about specific coverages to meet your needs, we strongly recommend that you contact your insurance provider for additional information and clarification.

If you have any questions, please feel free to contact a member of the Shelter Management Group (SMG) team, we would be happy to help.  Contact us at 702.818.4780. Article Authored by:  Jamie Collins, Supervising CAM, CMCA, AMS co-owner, Shelter Management Group (SMG)

Las Vegas Short Sale News: Senate Extends Mortgage Debt Forgiveness Act for 2014

Homeowners who sold their home as a short sale and their REALTORS® sighed in relief today as the U.S. Senate followed the U.S. House of Representatives meaning Congress finally approved an extension to the Mortgage Debt Forgiveness Act of 2007. This act has exempted sellers who sold their primary residences on a short sale to avoid being taxed on forgiven debt.

The Debt Forgiveness Act had expired at the end of 2013 leaving those residents in Las Vegas and nationally, who were planning on completing a short sale in 2014, in a position to potentially be taxed on large amounts of debt that could be treated as income.

The extension bill approved today retroactively includes eligible short sales that closed at any time during 2014. The caveat is that the bill approves short sales that closed during 2014 only. A new extension, which seems very likely to be approved, will be left to the incoming 2015 Congress. The reason another extension is likely is that Washington will want to have a new extension that allows for a reasonable and noticed end date, and not simply cutting off homeowners past 2014. A lot of potential Las Vegas sellers have been on the fence about whether to list their homes this past year because the extension was not in place. The down side to that inaction is that another year then passes and the seller never moves forward to address their debt and financial recovery.

Las Vegas Sellers who sold their home in 2014 should obtain professional tax advice to see if they qualify to get the debt exemption. I recommend either a CPA or enrolled agent level tax professional on this issue. The cost is far less expensive than you think and making sure that tens of thousands of dollars of debt are not counted against you, demands you get properly advised.

Any homeowners who, despite the recent run up in prices and are tired of being underwater, can call Paul Rowe at Shelter Realty for a no obligation review of their situation. You may reach Paul at 702 376 7379 or email him at info @ shelterrealty dot com.

If You Can’t Sell Your Las Vegas Home, Rent it

Shelter Realty has been contacted over the last month by several Las Vegas homeowners about listing their property for rent. The message has been very similar, my home is not selling and now I just want to rent it.

The Las Vegas Real Estate Market is changing and homes are not selling as quickly as they were a year ago.  Las Vegas home prices are up over the same period from last year but homes sales are down.  With the increased real estate inventory, homes are not selling and subsequently are sitting on the market vacant for a longer period of time.  To make matters worse, we are entering the holiday season when homes sales traditionally slow down.

If you are a Las Vegas seller and your property has been on the market for sale for over 90 days, I would recommend looking into placing your home on the market for rent.  Shelter Realty manages over 600 residential properties and are vacancy rates are below 5%.  By placing a renter in your property, you can minimize out of pocket mortgage costs while you wait for the sales market to shift.

For more information about our Las Vegas property management services, give us a call at 702.376.7379 or complete the form to the right to see if renting your home makes financial sense.

Beginning August 16 2014. those who want to utilize a “conventional loan” to purchase a new home after previously selling a home on a short sale will face a longer eligibility period.  At present, buyers who sold their previous home as a short sale can purchase again after two years if they are putting down 20%. After August 16 the waiting period moves to four years when using conventional financing.

Fortunately, buyers can still purchase with FHA financing after 3 years.  This is the current guideline for FHA and no changes on the three years appear forthcoming.

Buyers who are looking to purchase quicker than three years after a short sale may have some options open to them utilizing credit repair companies but be careful who you use and try to only work with a company who has a track record. They must show you a successful track record and if they aren’t successful, offers you some reimbursement in the event they can’t deliver.

For more answers regarding short sales including your particular situation please contact Shelter Realty Inc., at 702-376- 7379 or by emailing info @ shelterrealty. com

I attended a broker event yesterday at Palms Place, the Condo-Hotel development next door to the Palms Casino. They are currently releasing about 220 units of which 180 are studio suites and 40 are 1 bedroom suites. The studios are 615 square feet and start at $195,000 and the one bedroom units are 1220 square feet and begin at $325,000. Pricing will vary depending on view and height location of the unit. There is also a 3,900 square foot hundred penthouse for 1.8 million.

The services and amenities offered by Palms Place were impressive. I won’t list everything here but a sample list includes:

* Spa Services
* Limo and Car Services
* VIP Check-in lounge
* Personal Training
* Car Care
* Discounts at the majority of Palms Casino amenities
* Complimentary access to Palms nightlife and daylife venues
* Rental Pool Program for owners to rent out their unit
* Concierge Services
* Kerry Simon’s restaurant SIMON

The Palms property consists of three towers. The first if the casino/hotel, then there is the Fantasy Tower which was the former Playboy Tower and finally, Palms Place. Between all three towers there are numerous choices to play, relax and live a true Vegas lifestyle.

One of the things I love about the Palms is that you can have every amenity and choice of a Las Vegas Strip property but don’t have the traffic and congestion issues of being on the Strip. The location is less than five minutes from the Strip and there is convenient access to Interstate 15.

Paul Rowe is an agent with Shelter Realty and has extensive experience with Las Vegas high-rise living options. He may be reached by calling Shelter Realty at 702 376 7379 or by emailing “info @ shelterrealty.com”. You are also welcomed to fill out a contact form on this webpage as well.

Experian and Transunion May Begin to Include Rental History as a Part of Credit Scores

One of the challenges many first time home buyers often face when trying to purchase a home is a lack of established credit lines. Multiple credit lines such as credit cards, lines of credit, department cards, furniture store credit help build a person’s credit score when not overused and paid on time. Sometimes, people don’t have many trade lines of credit when first starting out or recovering from a financial crisis like a bankruptcy. In a bankruptcy the debt might be gone but also gone are the lines of credit the person had.

In an article published in the Columbus Dispatch “Credit Scores Might Soon Reflect Rental Payments,” Credit bureaus Experian and Transunion have begun incorporating some rental histories into credit scores.

A renter would have to pay through an authorized rent processing company contracted to work with the credit bureau. I recently spoke to a local Las Vegas mortgage broker, Leslie McGarry with CMG Financial. She said another alternative is to work with a good mortgage broker that can document your rental history and either have your rental history verified through another data collection agency and then added to your credit file as “supplemental info” or they can have the data added and request a rapid re-score with the credit bureau and obtain an updated credit score. This can be done in as quickly as one week.

Buyers should not assume they do not have the credit necessary when considering a home purchase. The best thing to do is find a real estate agent and consult an experienced loan officer. Not only are people’s credit sometimes better than they thought, but often the credit can be built and improved into the level of a qualified buyer.

Immediate opening for full time Las Vegas Residential Property Manager/Field Coordinator.

This is a field position consisting of move-ins, move-outs, make readies and inspections. You must have reliable transportation and drivers license.

You must possess a Real Estate License and Property Manager Permit.  If you do not possess a real estate license and permit, please do not submit your resume!

We are looking for a self-motivated team player with superior customer service skills, able to multi-task, well organized and does not require constant supervision.

Requirements:

• Minimum 4 years residential property management experience
• Ability to tactfully address, negotiate and resolve issues with owners, tenants, and vendors
• Good communication skills (verbal and written)
• Competent computer skills
• Attention to detail

Compensation:

• $16 – $18 an hour depending on experience
• Mileage

Benefits:

• Medical/Dental/Vision

If you are interested in this position, please email your resume to info(@)shelterrealty.com.

Shelter Realty, Inc. is an Equal Opportunity Employer.

National home values have risen and your investment properties probably gained values too. The Internal Revenue Code Section 1031 gives investors the ability to defer capital gain tax when you exchange business-use or investment property for another business-use or investment property.

There are many ways of exchange. For example, sell a vacation rental home in Hawaii and buy three investment properties in Las Vegas to generate more stable and higher income, sell an old apartment building which always needs repairs and buy a Triple Net Leased commercial property, sell a farm land in California and buy a hotel-condo in Florida. It can be exchanged for personal properties too.

Flipped properties don’t qualify, but if a property listed for rent for a few months without finding a tenant then changed it for sale, can qualify, as well as vacant land which didn’t generate any income. (Per Certified Exchange Specialist, Carmine at First American Exchange)

There are two deadlines for successful 1031 Exchange;

1. Replacement properties must be identified within 45 day.
2. The exchange must be completed by the earlier of 180 days from the date of the first relinquished property closing.

For fully deferred exchange, replacement properties must be greater or equal value of the relinquished properties, and all proceeds from the sale of the relinquished properties must be reinvested.

It’s important to select a Qualified Intermediary with financial backing of $1,000,000 Fidelity Bond and $250,000 Errors & Omissions Bond. Nevada is one of nine states which enacted the QI law.

Las Vegas HOA Recall Elections: How Do I Get A Board Member Recalled?

Every executive board in an association must go through an election process on a regular basis, which is typically annually and spelled out in the association’s bylaws.  In accordance with NRS 116 and the associations governing documents, every board must consist of no less than three board members and can be as large as seven to nine board members.  But what happens when a board member needs to be removed from the board? Can a director be removed from the board?

YES.  According to NRS 116.31036 board members can be removed from the executive board and here’s how it works …

A member of the board can be removed with or without cause provided that the unit owners are able to obtain the signatures of at least 10% (or less if the governing documents allow) of the unit owners on a petition to request a removal election.  This petition must be mailed, return receipt or served by a process server to either the Community Manager or the Board.

The next step is to send out secret ballots to the owners between 15 and 60 days before the removal election meeting and is handled by the Community Manager.  The ballot process is handled the same way that a regular election is processed.  The removal election must be completed within 90 days of the receipt of the petition and is typically monitored by the association’s attorney given the nature of the process.

In order for a recall election to be successful, at least 35% of all unit owners must vote in favor of the recall and the majority of the total votes cast MUST be in favor of the removal  If the Association does not receive at least 35% of the owners to vote in favor of the recall and a majority of the total votes cast are not in favor of the removal, the Director will remain on the Board.

In conclusion, it is possible to remove a member of the board.  This may seem like a very high standard to meet but there is sound reason behind the restrictions. It is my opinion that the laws may have been written this way in order to prevent frivolous removals of board members while still making it possible to do so should there be a broad-based community support for such an action.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Chances are very good at some point you will live in a community here in the Las Vegas area that is controlled by a homeowner association (HOA). There are about 2,300 associations here. If you live in a single family home built after 1995 there is a very good chance it belongs to an HOA.

What is the Purpose of an HOA?

HOA’s are set up as non-profit corporations in most cases and their purpose is to establish and enforce standards. These standards are meant to protect the assets and living experience of all the members of a particular community. Can you imagine someone in Sun City Anthem tearing down their home and replacing it with a double wide trailer? Obviously, the trailer would be incongruent with the standards of the community and if you were the next door neighbor imagine the effect of that homeowner’s decision on the value of your house!

HOA’ also are charged with maintaining records of the community, handling the finances, budget, and maintaining common elements, as well as their long term replacement.

How are HOA’s Organized?

As previously mentioned, HOA’s are set up as non-profit corporations and generally governed by Nevada State Statute (law) provisions named NRS116 and the accompanying code written primarily by the Nevada Common Interest Community Commission and Nevada Real Estate Division. HOA’s are also subject to relevant Federal statutes.

Once the HOA is filed with the State they have corporate documents known as “governing documents”. These include Articles of Incorporation, bylaws, rules and regulations. HOA’s also employ a representative government in the form of an elected board. This board has specific duties and powers to govern the community in accordance with the governing documents. Board members are unpaid volunteers and have legal responsibilities to uphold the duties of their office. Being the work associated with many associations is far more extensive than the time a board member can generally commit, so boards often contract with management companies to perform much of the work needed to run the HOA.

Here are Some Tips to Make Your Life Easier in an HOA

• Once a home is a part of an HOA, the occupants (including all tenants) are subject to the rules of the community. If you don’t like the rules don’t live there or try and work with the board to resolve issues. First, you will have to get educated on how an HOA works. Sometimes people who initially disagree with how a community is run come to understand why some things have to be accomplished when they come to know the totality of issues involved.

• Pay your assessments on time, even if you are in a dispute. Unlike rent where you can withhold rent in certain circumstances, not paying your HOA will only subject you to grief and fines. State laws provide avenues to address legitimate grievances. Did you know an HOA can actually foreclose on your home if you don’t pay your assessments?

• Understand assessments should increase incrementally over time. Assessments that never go up may appear on the surface to be a good thing, but as inflation makes the cost of services more expensive, assessments that don’t keep pace forces the board must scale back on the upkeep of the community’s assets in order to stay on budget. This can lead to components of the community needing replacement sooner, increased legal liabilities such as slip and fall hazards. The possibility of large special assessments to pay for unexpected costs in later years can end up costing far more in the long run than regular small increases to the assessments.

• If you get a notice of a violation don’t ignore it, deal with it directly. Most HOA’s just want compliance. Good communication is welcomed in a good HOA to get problems solved quickly, and at a minimum of inconvenience to all parties. Nobody likes paying fines, so if you receive a courtesy take action right away. Delaying will usually just end up costing you more in the end.

• Seek out a few neighbors and the board members. Having direct relationships can really help you when issues may arise.

• Do not make any architectural changes without first checking to see what the HOA’s policy is on changes. Nobody wants to pay for changes to their home only to have the HOA force them to remove the changes. Yes, they can legally do this, so be careful. Again, simple communication is the key.

• Know the basics of your HOA: parking restrictions, rules about noise, rental restrictions etc. Most of the important rules governing use are usually located in the governing docs and outlined in a table of contents. You don’t have to be a legal scholar to understand your governing documents.

Jamie Collins is co-owner of Shelter Management Group (SMG) and a licensed Supervising Community Association Manager (CAM). For questions about HOA’s and related management services you may call her at 702-818-4780 or email: info @ sheltermanagementgroup.com

I receive calls from Yelp at least once or twice a month to sign up for their ad program for Business Owners but I have yet to sign up and for very good reason. As many property managers know, managing rental properties is a thankless job. It’s very rare you receive phone calls from landlords or tenants stating how happy they are with your services. It’s usually a tenant calling to notify you of some type of repair that is necessary or a repair that wasn’t completed to their satisfaction.  Many tenants believe property managers are at their beck and call and if a repair isn’t handled quickly enough or to their satisfaction, they won’t hesitate to place a negative review of your company on Yelp or threaten to place a negative review.

Am I worried about the negative reviews we have received? Not at all, as I know almost all the negative reviews are inaccurate.

Shelter Realty currently manages over 600 rental properties and have rented to thousands of tenants over the years and only have a few negative comments. There are just some tenants that no matter what you do, you will never make them happy.

The problem I have with Yelp reviews is that almost all our positive reviews aren’t displayed. You have to click on the link that states “other reviews that are not currently recommended” to view all our positive reviews from landlords who have shared their experience with Shelter Realty as their property manager. I asked the representative from Yelp why these positive reviews don’t display and the only answer I received is that it has to do with the algorithm. So my response to Yelp is:

Why would I pay to use your ad program and have my target clients (landlords) only see negative comments from tenants but none of  the positive reviews from my landlords?

I will continue to ask my clients who have advised us of their happiness with our services to take the time and share on Yelp but I would not recommend to any colleagues to pay for Yelp’s ad program until they fix their algorithm issues.

It seems like a simple term, “unit owner”, however the Nevada Real Estate Division was recently tasked with a request to formally define what a unit owner is. According to a newly drafted opinion provided by the Commission, the term “UNIT OWNER” has been clarified and defined as follows and is referenced in NRS 116.095 and NRS 116.093 as well as NRS 116.2105:

“A unit’s owner is any person who is considered an owner of real property by law. Real property interests must be transferred in writing. Therefore, a unit’s owner is a person or entity that can provide a written conveyance or other writing that transfers a unit to them. The written conveyance or other writing must be signed by the person transferring the unit. A unit’s owner is also a lessee of a unit if the written lease expires when the common interest community expires. An owner of an entity that is a unit’s owner is anyone who can provide the association with evidence of ownership of the entity regardless of the ownership percentage.”

Note:  A deed does not need to be recorded for ownership to be effective, the law only requires that any transfer of interest in real property be in writing, signed by the grantor and notarized.  *Draft Nevada Real Estate Division Advisory Opinion, November 20, 2013.

This, like many other definitions that we hear on a daily basis can be somewhat confusing. We have compiled a number of commonly used terms, like the one above, and provided an abbreviated version of the definitions of those terms for your reference on the Shelter Management Group website. If you have any questions, please feel free to contact a member of the Shelter Realty or Shelter Management Group (SMG) team, we would be happy to help.

*It is highly recommended that you review these definitions with those sections of NRS 116 mentioned by logging on here.