Yes, this is the guru of temporary use here. Hold a conversation and points today about the management companies in the industry for temporary use and land development. The forthcoming statements will be based on two things. First, thirty or more years of experience as a senior executive in the industry. Second, from what we found to be a normal situation in the industry.
After implementing the most successful marketing and sales programs in the temporary use industry, we can say that temporary use management companies and management companies today can be compared to fire and water. The project for temporary use is the fire, and the management company is the water. It looks good on paper, but what the Homeowners Association or Property Owners Association didn’t see was that the fire contained flammable liquids that the water wouldn’t put out. Or on the other hand, the management company saw the possibility that what most would say is “easy money”.
Why is money easy? Homeowners ‘associations and homeowners’ associations are burdened with unsold inventory, defaults and bankrupt accounts, just to name a few problematic issues. All of these concerns are the deciding factor in the “cost” of maintaining a property base. The increase in maintenance fees, special assessments and the list goes on and on. The real question is, do these resort management companies have a solution to all these problems? In fact, the answer is “NO”. Yes, they come to the table and promise this program and this program, but do they work? Back to reality, a bandage on a severed artery stops bleeding permanently? Through serious and long-term research, I found that most management companies today add to the discomfort of the property base as a whole because of their ability to run a business as a normal environment for the project itself. Timeshare projects run by Homeowners ‘Associations or the Property Owners’ Association, which in management companies without successful and knowledgeable trained sales and marketing staff really have no chance of survival. This would be equivalent to a patient who has terminal cancer damage. It’s only a matter of time. Maintenance fees will continue to increase (management companies will decrease independently) special assessments will continue to rise, there is no end to this dilemma, this very special time that everyone loved and enjoyed, now has become a financial burden.
Price against reality! Every homeowners ‘association and homeowners’ association today is overwhelmed by what are called “Deed Back” companies. These predators are praying to resorts that have been buried by fees that management companies seem to create. They invite owners to temporarily use meetings and make them pay to get out of their temporary sharing. What is a backup company? This is a fictitious company created somewhere legally, which is pre-planned to go bankrupt or simply be terminated. What happens to a resort then is a serious drop in money shortages. The resort accumulates large amounts of excess unsold inventory, this is a snowball effect. But in reality, this does not affect management companies, they will simply receive lower management fees if they do not take drastic measures to maintain revenue inflows. Currently, most management companies have no solution to the problems, except to continue to charge fees to existing owners. These situations have a serious financial effect on the resort and all its owners. All these problems can be avoided.
When hiring a property management company today, serious questions need to be asked. In order to maintain a strong and healthy resort environment, all property management companies “MUST” have experienced sales and marketing staff on board in today’s ownership environment. Most property management companies have no idea what it takes to maintain a solid resort financial system. Many will “wing” it just to survive. They rely on their hiring program to make up the difference. Great in a dream, it won’t happen in the real world unless we hand out these rents. Ask any management company if they were able to lease all the shares of each project in April in Garden City or Park City, Utah. Avoiding the breakdown and costs that your homeowners ‘association or homeowners’ association will create by not knowing how to choose or hire the right company can be the difference between success and death. Owners pay the price for bad decisions made by the Homeowners Association and Property Owners Councils. Sales are sales, but experienced sales in the right industry are the right compound for a fire containing flammable liquids.