REVIEWFall 2016

Survey Paints a Positive Picture for HOA Board MembersBeing a board member isn’t always easy, but it can be very rewarding when you’ve successfully managed your HOA. So what does success look like for a board of directors?

Perhaps your board measures its success by how much more financially stable the HOA has become. Or maybe it bases it on development of one or more long-term plans or completion of key projects. Every one of these is a valid way to judge your success and a reason for your board to be proud.

But let’s be honest: The main gauge of success is what your residents have to say. They are the ones your association serves, after all. Getting accurate feedback from residents, however, isn’t always easy to do.

Fortunately, a national survey conducted in 2016 by Zogby Analytics and commissioned by the Foundation for Community Association Research looks at what HOA residents across the country think. And the survey paints a positive picture. For the sixth year in a row, residents in HOA communities indicate that they are overwhelmingly satisfied. Here are the top statistics the survey reveals:

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Register Today!

YOU’RE INVITED! The 2016 FirstService Residential Conference & Exposition is quickly approaching!

Flip to page 4 for more information on this Arizona board member exclusive event!

• 65 percent of respondents report that living in an HOA community has been a positive experience. This includes those residents who rated their experience either four or five on a scale of five.

• 81 percent of residents say they are on friendly terms with their board of directors. As any board member knows, it’s not easy balancing the duties of your role with enforcement of the rules. But it seems that the majority of you are managing it well.

• 84 percent of residents believe that their board members strive to serve the best interests of their community. This includes residents who said that members were “absolutely” or “for the most part” striving to serve their interests. This shows that residents have a great deal of confidence in the goals and intentions of their HOA boards.

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Making a Difference. Every Day.

Survey Paints a Positive Picture for HOA Board Members

Message from John Kemper

You’re Invited - 2016 FirstService Residential Conference & Exposition

FirstFeast Recipes

How to Select the Right Community Management Company

Seven Rules of Successful HOA Budgeting

Financial Health Tips for Your HOA

Who are My Neighbors - Six Tips for Making Friends During the Holidays

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TABLE OF CONTENTS

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Making a Difference. Every Day.

MESSAGE FROM JOHN KEMPERPresident, Arizona

It’s hard to imagine that a year has come and gone since I first began this journey as president of FirstService Residential in Arizona. After making the decision to embark on this new adventure leaving over 20 years in the staffing industry, I have discovered that the HOA industry isn’t much different. It’s all about perspective and the relationships you build along the way.

Over the past 12 months, we have been planning and preparing for what we believe is an improvement in the level of service we provide to our clients. We have changed our perspective on who we hire by choosing individuals that have the naturally born fundamentals of leadership – sincerity and integrity. FirstService Residential is committed to providing ongoing training to our team members through FirstClass©, our proprietary e-Learning platform, to ensure that we are performing in a unified manner across the country, while positioning team members for professional advancement in their careers. By restructuring our executive and leadership teams, and recruiting qualified and dedicated community managers to support our communities, we feel that we have a stronger foundation to service our clients than ever before.

With our commitment to education and improving the industry, we also provide cutting-edge educational programs for board members across the state. We are passionate about being the best at what we do. We aim high and set the standard for service and professionalism in the industry by providing continuing educational programs for board members through our quarterly board education series, intimate roundtable discussions and board member bootcamps.

As we head into this fall season, there are so many things that our communities have to look forward to. Our Annual FirstService Residential Conference & Exposition is just around the corner, scheduled for Friday, November 18 at Wild Horse Pass Hotel & Casino. This year you can expect to see over 70 vendors in attendance, multiple educational seminars on trending topics, interactive demonstrational booths and even free legal advice sessions. We look forward to seeing you there!

We believe that not only meeting, but also exceeding your expectations drives how we develop and foster great relationships with each of our boards. I am looking forward to this next year of service and experiencing the positive impact that our new structural changes have on our current clients and our footprint in the Arizona HOA management industry!

Sincerely,

John Kemper, PresidentFirstService Residential Arizona

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Survey Paints a Positive Picture for HOA Board Members Continued from page 1

• 82 percent of those residents who had any direct interaction with their community manager said it was a positive experience. This is a relevant statistic since community managers are often in the difficult position of making residents feel good about their community while also enforcing rules and helping to mediate community conflicts.

• 62 percent of respondents feel that the amount of the overall assessments that they pay for services is just right or too little. Apparently, residents understand the value they get from their HOA fees.

• 66 percent of respondents believe that their HOA rules protect and enhance property values. This demonstrates that, for the most part, residents understand the need for an HOA.

These statistics provide an objective view into the minds of residents. Hopefully, they also remind you of why you’ve chosen to serve on your board. So give yourself a pat on the back!

To learn how a community manager can help make it easier to meet the needs of your community, contact FirstService Residential, Arizona’s leading community management company.

It’s Back!

YOU’RE INVITED!

Did you know that last year, more than 400 people attended the highly anticipated FirstService Residential Conference & Exposition? This year we are kicking it up a notch with a more attractive time schedule, exciting location and premier board member educational opportunities!

Here’s what you can expect:

• Over 70 booths of industry leading professionals• Educational seminars covering trending topics• Interactive demonstrational booths• Italian-style buffet lunch

• Raffle prizes every 10 minutes• Free legal advise sessions• Relaxing cocktail hour • and SO MUCH MORE!

This Year’s LocationWild Horse Pass Hotel & Casino

5040 Wild Horse Pass Blvd.Chandler, Arizona 85226

Register now at www.fsresidential.com/AZExpo2016. Interested in making a day of it and reaping the benefits of all that the hotel and casino has to offer? For more details contact Ashley Tutelo at 480.551.4318 or via email at ashley.tutelo@fsresidential.com!

Friday, November 18, 2016

To learn how a community manager can help make it easier to meet the needs of your community, contact FirstService Residential, the leading community management company in Arizona.

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Classic recipes from our table to yours

Sausage & Pecan Morning Casserole BakeRecipe courtesy of FirstService Residential homeowner

MAKES: 8 - 10 servings

INGREDIENTS:

10 breakfast sausage links

6 eggs

1 ½ cups half-and-half

¼ tsp. ground nutmeg

1 cup brown sugar, packed

2 tbsp. maple syrup

1 loaf raisin bread

1 ½ cups 2% milk

1 tsp. vanilla

¼ tsp. ground cinnamon

½ cup butter, softened

1 cup pecans, coarsely chopped

DIRECTIONS:

Prepare a 13 x 9 inch glass baking dish with nonstick spray. Cube raisin bread and place into baking dish.

Brown sausage; drain and cut into bite-sized pieces. Mix with bread in the baking dish.

In a large mixing bowl, beat eggs, milk, vanilla, nutmeg, half-and-half, and cinnamon until blended. Pour over bread and sausage. Cover with plastic wrap and refrigerate for 8 hours or overnight.

Heat oven to 375 degrees. Combine brown sugar, butter, syrup and pecans, and drizzle over casserole. Bake uncovered for 35 to 40 minutes, or until knife inserted in center comes out clean. Serve warm.

FirstFeast Recipes

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It’s Back!

YOU’RE INVITED!

Did you know that last year, more than 400 people attended the highly anticipated FirstService Residential Conference & Exposition? This year we are kicking it up a notch with a more attractive time schedule, exciting location and premier board member educational opportunities!

Here’s what you can expect:

• Over 70 booths of industry leading professionals• Educational seminars covering trending topics• Interactive demonstrational booths• Italian-style buffet lunch

• Raffle prizes every 10 minutes• Free legal advise sessions• Relaxing cocktail hour • and SO MUCH MORE!

This Year’s LocationWild Horse Pass Hotel & Casino

5040 Wild Horse Pass Blvd.Chandler, Arizona 85226

Register now at www.fsresidential.com/AZExpo2016. Interested in making a day of it and reaping the benefits of all that the hotel and casino has to offer? For more details contact Ashley Tutelo at 480.551.4318 or via email at ashley.tutelo@fsresidential.com!

Friday, November 18, 2016

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How to Select the Right Community Management CompanyIf you’re a board member of a Phoenix HOA, or any Arizona community for that matter, you’re used to facing challenges. But oftentimes, these challenges can become overwhelming. That’s why many master-planned and condo communities look to professional community management companies for help.

So what do these firms do? In a nutshell, they:

• Assist community boards in setting objectives

• Create strategies to help them meet those objectives

• Oversee common-area maintenance

• Work with service and repair vendors

• Spearhead efforts to collect assessments

• Serve as the first point of contact for residents when they have issues that need to be handled promptly

Of course, there’s a lot more to it than that, so it’s especially important that you chose a company that can do the job it was hired to do and that fits your community’s needs. You’ll know you’ve found a good community management company if it can demonstrate that it:

Has significant experience

It takes a depth of knowledge to be able to anticipate and effectively resolve a community’s challenges. Look for a firm that has a long history of serving your type of association.

Knows the local marketNo two markets are alike, so your community management company should be familiar with your specific area. This includes staying abreast of Arizona laws, local laws, and codes that can drastically impact your community. The company also needs to be familiar with natural disasters typical of Arizona, such as monsoon floods and wildfires, so that it can be in a position to help your community with an appropriate response plan.

Has connections

A company with a long-standing history in your market is likely to have built relationships with trusted contractors and vendors who have proven to be capable, reliable, and reasonably priced. If you’ve ever been disappointed by poor workmanship, you know how valuable it is to have good connections.

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Can reduce your stressHave you ever felt overwhelmed by your duties as a board member? The right community management company will save you time, streamline your processes, and take some of the onerous tasks of board membership off your shoulders. That way, you can focus on other tasks that need your attention the most.

Understands technologyOne thing about community management will never change: It’s all about people. Still, it’s important that the firm you choose be able to provide technological support to you and your residents. Look to companies that use technology to improve efficiencies. For example, FirstService Residential offers FSRConnect, a proprietary platform that provides payment portals, efficient information delivery, and online options.

Is always there for you

Many of the challenges that communities face don’t wait for business hours. That’s why the firm you choose should be available to you 24/7, preferably with a dedicated customer service team.

Has backup You’ll definitely want a single point person with whom you can interact. But a good community management company also supports you with a wide range of professionals trained in specific areas, such as accounting, insurance, administrative tasks, and more. It also helps if the company you choose has a hierarchy of local and regional directors.

Stays on the forefrontThis isn’t the kind of industry in which you can rest on your laurels. Great community management companies are always improving, and they not only offer educational opportunities to their team members but to their client boards, too. FirstService Residential in Arizona provides its team members with ongoing training through FirstClass©, our proprietary e-Learning platform. We also offer local board member training and events, board member boot camps, 24/7 online training through BoardAdvantage®, and an annual vendor conference and expo. All of this is designed to help you serve your community better.

Focuses on hospitalityA reputable community management company should take its cue from the world of hospitality. That means providing concierge-level services on par with the most celebrated hotels and resorts.

Keeps an eye on savings Saving money shouldn’t simply be a consideration when you’re developing your annual budget; it should be something you look at on a daily basis. Likewise, your community management company needs to be concerned with reducing your costs without negatively impacting service levels. It should also have the leverage to get you lower interest rates, cut your insurance rates, reduce service fees, negotiate better vendor prices, etc.

Implements the board’s visionYour job as a board member is to focus on the big picture. It’s up to the community management company to address the details. The best management partner will help you keep the right focus by handling the minutia.

It’s not always easy to find the right company, but at least now you know what to look for.

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The Seven Rules of Successful HOA BudgetingDo you dread preparing your HOA’s annual budget as much as you dread stepping outside of your Arizona home on a summer afternoon? You’re not alone. For many HOA boards, it’s their least-favorite task. But look at it this way: You’re making sure that your HOA remains financially stable, and that’s an important job.

To prepare your annual budget successfully, here are seven rules you should follow.

1. Make residents your first priority. Your HOA budget shouldn’t serve any special interests (including your own). The entire community feels the impact of the budgeting decisions you make, so your goal should be to enhance the community and maintain a high quality of life for all residents.

2. Plan for both your short- and long-term needs.In addition to evaluating the needs of the community in the coming year, plan for three and five years out. Look at those projects that you can’t fund this year. And while you’re looking at your budget, anticipate price increases from your current vendors—and whether you might want to get new bids in the coming years. A national community management company can offer the advantage of its buying power when negotiating prices.

3. Look at your expenditures carefully.It may be appealing to take shortcuts, but that won’t give you an accurate picture of your needs. Look at each expense rather than annualizing them from last year.

4. Do your best to control delinquencies.Delinquencies come with the territory when you live in an HOA. When you’re preparing the budget, you will need to consider anticipated delinquencies as bad debt expenses.

A tough approach to collections—and consistency in charging late fees—can help minimize delinquencies. However, it’s highly unlikely that you can get rid of them all together. Just keep in mind that an excessive number of receivables can put your community at risk in terms of basic services.

5. Be diligent with your operating fund.At the very least, you need to have an operating fund balance that can cover a month of maintenance. Otherwise, you may have to levy an assessment to manage the shortfall. Have you considered every source of revenue? Don’t be tempted to include a contingency line item in your budget as this can cause future problems.

6. Make those tough choices when necessary.If your CPA has provided recommendations

along with your audited financial statements, you may have to consider

them now. Also, it’s probably a good idea to include a budget line item

to account for an accumulated deficit or a potential gap. Or you could levy a special assessment.

7. Dot your i’s and cross your t’s.

Do everything with care and according to the rules.

Remember to get board approval for all reserve expenditures, and take

a close look at your internal controls to remove any chance that funds are

mishandled or carelessly wasted.

You have the future of your community in your hands during the annual budget process, so you want to do it right.

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Financial Health Tips for Your HOAMaintaining your HOA’s financial health—just like maintaining your personal health—boils down to moderation and good decision making. Eating one deep-fried blooming onion every once in a while isn’t a problem. Eating three or four several times a week is.

To keep your HOA financially fit, start with these four “health” tips:

1. Separate financial duties. Keeping responsibilities for receipts and deposits separate can help prevent financial mishandling. A good community management company will have the staff to segregate these duties.

2. Obtain the right insurance coverage. Your HOA needs to have a variety of insurance coverage. This includes:

• Casualty insurance to protect common areas

• Liability insurance in case of legal action

• Excess or umbrella coverage

• Coverage to protect directors and officers from personal liability while they are fulfilling their HOA duties

• Fidelity insurance in case of theft

3. Make sound investments.When it comes to your reserve fund, focus on balancing liquidity with safety. CDs are a safe bet for your HOA’s investments. Avoid stocks, municipal bonds, and corporate bonds since they pose too much risk. Check your governing documents and local laws to make sure you are following legal and HOA regulations.

4. Conduct audits on a regular basis.A CPA should do an in-depth analysis of your financial records and documents regularly, usually on an annual basis. If yours is a smaller HOA, you may want to opt for a less in-depth (and less expensive) review.

These guidelines provide a starting point. However, partnering with an experienced community management company in Arizona can

go a long way in keeping you on the right track for your short- and long-term financial health. Find out how. Contact FirstService Residential, Arizona’s leading community

management company.

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WHO ARE MY NEIGHBORS? Six Tips for Making Friends During the Holidays

As we look forward to the upcoming holiday season, for many of us, it can feel like a continuous run on a treadmill of work/shop/repeat – with a few parties and social engagements sprinkled in just to spice things up – and complicate your schedule.

But if you step back for a moment (and what are the holidays if not a time to step back and reflect?), you may see that this is actually the perfect time of year to get to know your neighbors. Whether you live in an active adult, high-rise, or lifestyle community, getting to know your neighbors can not only improve your social life, but can also enhance everyone’s lifestyle and safety. For example, friendly neighbors can take in mail and water plants for each other while they’re away, report suspicious activity around each other’s homes and other friendly and neighborly activities.

So how can you meet and build friendly relationships with your neighbors during the holidays without overloading your already-crowded schedule? Here are a few friendly tips that can help.

1. Lend a hand.This is the time of year when you’re more likely to see your neighbors adding holiday decorations in and around their homes. In an age when our busy schedules make it increasingly difficult to catch your neighbors for impromptu meet-ups, this is an excellent opportunity to head over and introduce yourself. A good icebreaker? Ask if you can help out. Holding a ladder or simply complimenting their taste in décor can go a long way to creating a neighborly bond – or even a lifelong friendship.

2. Broaden your guest list.If you’re planning to host a holiday party in your home or unit, consider inviting a few of your neighbors to join the festivities. Not only is it a simple courtesy – remember, your neighbors may be inconvenienced during the party by extra traffic, reduced parking or noise – but even just extending the invitation can set the stage for a new friendship. You can always send an invitation, but for an even more personal touch, knock on your neighbor’s door and ask them in person.

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3. Join a club.Many communities offer a selection of social clubs, and quite a few hold events throughout the year. Making the time to join one now (as busy as you may be) can be a worthy investment that will pay off throughout the year.

4. Hold an event.If you are a bit more ambitious, consider organizing an event of your own. Choose a local charity to support through a fundraising event, or let your personal interests and passions determine the nature of the activity. For instance, if you’re a pet lover, you could hold a “Holiday Dog Sweater” pageant as a way to meet fellow dog lovers in your neighborhood.

5. Do what the kids do.If you have children, make an effort to get to know their friends’ parents. There is a very good chance that their friends live in or near your neighborhood, so this can be a great way to build bonds with others in your community. The holidays offer a unique opportunity to do this – school functions and events offer a chance to meet and mingle with parents who live nearby. So don’t just take shoot some video and bolt for the door at that holiday play...stick around afterwards and make some new connections.

6. Make the most of mistakes.The holiday season is the busiest time of year for the postal service and package delivery services – and sometimes, mistakes are made. If someone else’s package or letter mistakenly finds its way to your house, hand-deliver the item to your neighbor – they’ll be grateful and you’ll have an opportunity to start a short get-to-know-you conversation.

As busy as the holidays may be, here’s hoping you have the time to give yourself one of the most important gifts of all – a new or strengthened friendship with one or more of your neighbors.

I’m organizing an event and would love for you to join us.

Do you need some help with that?

Welcome to the neighborhood!

I’m a new member.

Hi!

:)

9000 East Pima Center ParkwaySuite 300Scottsdale, AZ 85258

www.fsresidential.com

Corporate Office9000 E. Pima Center Pkwy.Suite 300Scottsdale, AZ 85258Phone (480) 551-4300Fax (480) 551-6000

Peoria Office16150 N. Arrowhead Fountain Center Drive, Suite 200Peoria, Arizona 85382Phone: (480) 551-4300Fax: (480) 551-6000

Tucson Office8375 N. Oracle Rd., Suite 150Tucson, Arizona 85704Phone: (520) 219-4520Fax: (520) 219-4711

Office HoursMonday - Friday8:00 a.m. - 5:00 p.m.Excluding Holidays

Executive Team

John KemperPresident

Rich OrdunoVice President

Kirk J. KowieskiVice President

Joshua WoodworthVice President

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Andrew WaySenior Vice President, Southern Arizona

Laurie PrestonDirectorHuman Resources