HOW TO SELECT A PROPERTY MANAGEMENT FIRM FOR YOUR

HOMEOWNERS ASSOCIATION

By Karen Conlon,

President, CACM

One out of every three people in California is living in some type of planned community

governed by a homeowners association. Hundreds of thousands of consumer dollars are collected

every month in dues from the many homeowners associations in California. The odds are good

that if you live in one of the more than 32,000 homeowners associations in California, your dues

are collected by a professional community association management firm retained by your board

of directors.

For most people, their home represents their most important financial asset. Keeping that in mind,

I'd like to make some recommendations on what homeowners should look for in a community

association management firm.

Proof of Expertise.

Ask whether or not your property management firm has been certified. The California

Association of Community Managers (CACMSM

) offers certification for both the individual

manager (Certified Community Association Manager or CCAM®) and for management firms

(Certified Management Firm or CMFC). Be suspicious of pricing that's substantially below the

rest of the competition. Never hire a firm just because it offers the lower rates. There's probably

a reason why.

Evidence of Risk Management, Including Insurance Check to make sure your firm practices risk management, including carrying the proper amount

and type of insurance to protect against theft, errors and omissions, and workers compensation

claims.

Proper Internal Financial Control Systems What sort of internal checks and balances system does your management firm use for handling

association funds? The company should follow proper methods of handling cash receipts and

disbursements, account receivable and revenues, as well as accounts payable, purchasing and

contracts. The board of directors needs to review the association's original bank statements once

a month and should not accept photocopies.

Disclosure of Subcontractor Contracts Make sure you understand which companies have been

hired to perform such services as pool or landscape maintenance. Ask if the property

management firm owns any interest in or any portion of the business or has some other potential

conflict of interest. Disclosure is the key here.

Bottom line, the best way to make sure you're getting the most value out of your property

management firm is to participate in the running of your association. Volunteer on a committee.

Get to know your neighbors and vote at each election. Most importantly, ask the tough questions

if you have any doubts or concerns about the management of your association.

BEVEN & BROCK DISTINCTIVES

• LOCAL - Local management is the best solution for the association. We don’t manage property more than 20 minutes from our offices in Pasadena.

• CERTIFICATION – Beven & Brock only hires certified managers with experience.

• EDUCATION - We are committed to FREE Board Education in a variety of formats

• STABILITY - Our staff loves working here, and the average length of stay for an Association Manager is over 10 years

• TECHNOLOGY - We incorporate technology where possible to help us and you do our jobs efficiently, while remaining sensitive to owners who are without computers.

• CONFLICTS OF INTEREST - We don’t maintain a maintenance staff, so that we are not in competition with any other vendor who may be better suited to your needs

• EXTRA CHARGES - We have very few, we don’t like them either.

• SERVICE LEVELS - We offer three different levels of service so that we can adjust to your changing needs.

• LONGEVITY - We began managing Associations in 1985, still managing today the one we began with in 1985.

• PRINCIPALS - The two principals, Fin Beven and Dave Brock are active and accessible

BEVEN & BROCK SUMMARY OF SERVICES

WHAT WE PROVIDE:

FOR THE PRESIDENT AND THE BOARD

- A management report on the status of the community. This is provided on –line through our web-site for Board members.

- Advice on any phase of community management or organization.

- Full financial reports (See samples in packet.). This is also available on-line.

FOR THE TREASURER

- Weekly payables packet: Copy of invoices, checks, stamped envelopes, check register. Currently, our Treasurers approve all payables by signing checks. This will likely become more automated via web-site capability.

- Full financial reports reconciled within twenty days of month-end, income, expense,

delinquencies, and budge comparison.

- Budget preparation information based on your income and expense history.

- Monthly statements and envelopes sent to all homeowners. E-billing also available.

FOR THE SECRETARY

- An online Minute taking template that will make recording and publishing minutes very simple.

Our capable office staff is fully bonded. We are covered by errors and omissions insurance.

You maintain complete control of your current vendors, there is no need to change a vendor unless you are not happy with their service. There is no mark-up on maintenance services, and there are no kick-backs received by Management Company.

Beven & Brock does not own, or have an interest in any entity that performs maintenance or contracting services.

THE IDEAL HOA & MANAGEMENT RELATIONSHIP

Involving a management company in the management of your association does not mean that there is no need for a Board of Directors. The Board does much less work with a reputable management company in place. The Board will still need to function as a board, in regular meetings as required by law and the governing documents. We provide educational resources as to how each Board member operates in their designed role.

Ideally, the Board meets and makes decisions based on information provided by the management company. Board members are not expected to involve themselves in day-to-day management of the association unless there is an emergency situation.

Committees are a great tool for Board members to utilize for specific, and short –term needs of the association.

WHAT IS NOT INCLUDED:

CONSTRUCTION DEFECT and INSURANCE LOSS RELATED

As there is no way to predict the amount of work needed or required, and due to the temporary nature of this issue, we believe that this should be bid separately.

DEFERRED MAINTENANCE or ARCHITECTURAL CHANGES

As there is no means available to predict the quantity of this sort of work and/or involvement in advance, Agent shall have no authority or responsibility to make or participate in the making of any structural or architectural detail changes or additions or enhancements or for repairs related to design or construction defects, for wide-spread damage related to fire, flood, earthquake, or the like, or for the correction or elimination of deferred maintenance. SMALL CLAIMS

Our office can coordinate the handling of small claims matters, subject to certain restrictions, and paid as a flat fee per case, or an hourly basis.

SPECIAL REQUEST MAILINGS

Beven & Brock will charge to the Association the cost of mailing (including postage and copies) when mailing to all owners, and it cannot be included in the monthly billing statement. If an association-wide mailing can be coordinated with the monthly dues, Beven & Brock will pay the postage for the first ounce of mailing. Copies and additional postage will be charged to the Association.

For owners who are delinquent, we will prepare and send a courtesy pre-lien letter which is not intended to be the legally required notice at a cost of $15.00, and is charged to the delinquent owners account, and paid to Beven & Brock only after paid by the owner.

ESCROW, REFINANCE and MOVE-IN/MOVE-OUT FEES

Individual owners will have specific needs related to the sale, refinance or renting of their individual units. Beven & Brock can provide those services. However since the service is not being provided to the Association, the association should not bear those costs. We will charge an appropriate fee to compensate staff time to meet such needs. This will include services for responding to escrow, lender and Realtor requests, as well as facilitating move-ins and move-outs, and programming changes to the entry gate system as needed.

EMERGENCY SERVICE CALLS

The after-hours and weekend response for Beven & Brock managed associations is provided by a team of independent maintenance persons and is charged on a usage basis to the association. As there is no way to predict in advance the number of after-hours emergency calls that will originate from the association members it is necessary to charge for these types of calls. An association board may elect to have emergency calls be made only by Board members or to allow all owners the ability to call the 24 hour emergency service number. If all owners are permitted to use the after hours emergency service number the following inappropriate situations could occur which would trigger a charge of $10.00 per call: 1) Calls which are truly not emergencies but perceived to be an emergency by the

caller. 2) Calls pertaining to non-common areas. Sometimes it is not possible to know if the call

pertains to common area or individual units, however generally if a leak is occurring we will respond regardless, and later the association can charge the appropriate owner in the event that is appropriate.

3) Calls pertaining to non-maintenance issues (noise, rule violations, or dues payments).

It may be possible for the Board to charge back an owner who calls the emergency service for reasons that are not true emergency maintenance calls. All calls placed to the emergency service are charged $10.00 per call. For actual maintenance emergencies that are in the common area, the first response is from an independent maintenance person. We have found that some emergency maintenance calls can be handled on the phone and save the association the expense of having a licensed contractor come to the property after hours. Some examples of this might include directing the caller to a shut off valve below the sink or asking if there is a second bathroom that can be used until the next business day in the case of a stopped drain. If it is absolutely essential that a maintenance person or contractor visit your property to resolve a problem after hours, you will be charged the prevailing overtime rates normally charged by the vendor. The bottom line is this: expensive after hours-emergency visits to your property are charged only when necessary. This only occurs after a phone call in which the situation is discussed at a charge of $10.00. Some of those calls, which are not association responsibility, may be charged to homeowners. We will do this at the Board’s direction.

Management Agent Disclosures

Before entering into a management agreement, a prospective managing agent must provide a board of directors with a written statement which contains all of the following information:

1. The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.

2. Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified above. If a license is currently held by any of those persons,

DISCLOSURE PERTAINING TO MANAGER CERTIFICATION

UPDATED: August 1, 2015 The following managers are certified.

C. Finley Beven Certified by CACM, on May 20, 1993, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

David Brock Certified by CAI, with a PCAM designation on October 1, 1990, and the status is valid until 8/1/2015. CAI is located at 6402 Arlington Blvd, Suite 500, Falls Church, VA 22042. Phone: 888 224-4321.

Paul Cannings Certified by CACM, on July 1, 2003, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

Laura Garbo Certified by CACM, on July 11, 2003, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

Lori Lacher Certified by CACM, on July 1, 2003, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

Juanita Flores - Certified by CACM, on June 28, 2004, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

Marilyn Howald - Certified by National Board of Certification for Community Association Managers since September 1, 1996, and the status is current. CAI is located at 225 Reinekers Lane, Suite 300, Alexandria, VA 22314-2875, Phone: 703 548-8600.

Vianna Boettcher Certified by CACM, in January, 2006, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

Sue Threadgill Certified by CACM, since March 2003, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

Roman Esparza Certified by CACM, since March 2009, and the status is current. CACM is located at 2171 Campus Drive, Suite 260, Irvine CA 92612-1472, Phone 949.263-2226

Managers currently NOT certified. At this date certification is in process: Trisha Ford, Laura Aguilar

MANAGING AGENT DISCLOSURES

Civil Code 1363.1 The fidelity insurance of Beven & Brock does not cover the association's operating and reserve funds. Beven & Brock maintains a standard preference and practice to not sign any disbursements on behalf of it’s association clients. Names of the Owners of Beven & Brock C. Finley Beven

Percentage of ownership: Greater than 10% 99 S. Lake Avenue, Suite 100 Pasadena, CA. 91101

Licenses held: Department of Real Estate - Brokers License; #00696626 Designations/Certifications held: CPM - (Certified Property Manager), Institute of Real Estate Management Dates: 6/28/87 to current

CCAM - (Certified Community Association Manager) - California Association of Community Managers (CACM); dates valid: 5/20/93 to current.

David F. Brock Percentage of ownership: Greater than 10%

99 S. Lake Avenue, Suite 100 Pasadena, CA. 91101 Licenses held: Department of Real Estate – Brokers License: License # 00644454 Designations/Certifications held:

PCAM - (Professional Community Association Manager); Community Associations Institute. Dates: October, 1990 to current

Designations held by Beven & Brock Accredited Management Organization (AMO), Institute of Real Estate Management;

dates: Nov. 10, 1989 to current.