Even though the pandemic pushed some people toward single-family homes due to their need for more space and private outdoor areas, the condo market continues to be strong. Many buyers prefer a more convenient, maintenance-free lifestyle, so they choose condos to avoid having to handle monthly or seasonal chores such as mowing the lawn or repairing the roof. This comes with a lot of responsibilities for condo property managers, who now need to satisfy and anticipate buyers’ expectations.
In South Florida, where strict safety requirements were passed after a beachfront condo building collapsed in Surfside in the summer of 2021, condo property management has become particularly challenging. Hector Vargas, the president of the High-Rise Division at FirstService Residential Florida, told Multi-Housing News that there are several external factors that property managers don’t have control over that make condo management more difficult today.
Here’s what Vargas told MHN about what it takes to successfully manage high-rise condo buildings in today’s complex economic and financial climate.
What’s the most challenging part of being a condo property manager in 2023?
Vargas: In Florida, condo property managers continue to elevate the profession to next levels. These are roles that require extensive understanding of housing regulations, technology, hospitality and people management. The environment that we’re seeing involves scarcity of and higher price of talent, property insurance premium increases, legislative mandates regarding structural integrity inspections, new funding of reserves, overall inflation—all resulting in increasing condominium fees.
Many of these aspects are external and cannot be controlled by the property manager, who shouldn’t have to handle all these challenges alone. That’s why we empower our property managers with extensive resources and the support of a team of experts, so they can focus on the customer.
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Could you give our readers an example of a recent challenge you find illustrative and how your company overcame it?
Vargas: Together with our affiliate FirstService Financial, we have been able to provide insurance consultancy to many of our clients. As a result, working with local brokers, we’ve identified the right coverage at the lowest rates. The market is very tight, and looking at coverage differently matters to attain insurance rates today.
Which would be, right now, the main differences between managing condos and single-family?
Vargas: Right now, the legislature is imposing new requirements around structural integrity and reserve funding that increase costs for high-rise buildings. High-rises also have bidirectional amplifier systems and building mechanical systems, which require people with skilled expertise to manage. These items differ from the single-family environment, and there’s a hefty dollar value attached.
We are also seeing an increase in expectation for world-class hospitality in our high-rises. As people travel and own properties around the world, when they come to enjoy their Florida residence, they expect a similar level of service. From refined dining options to elevated wellness amenities and services, to high-tech entertainment and concierge programs, life in many of the high-rises we manage in Florida matches the experience of other global destinations.
With tech taking over larger and larger slices of our lives, how has communication with residents changed? How has that impacted operations?
Vargas: We use a variety of communication channels to ensure that our messages reach residents however they prefer to communicate with us.
In this digital era, people expect timely communication, and our resident alert technology allows us to reach every single resident within seconds, via phone or email. We can easily communicate maintenance issues, association affairs and operations, emergency situations, weather alerts and more. It’s a great tool, particularly in Florida, when dealing with hurricane preparations. We can follow every stage of the process, keep residents informed and send reminders of what they need to do as we move forward into a hurricane warning.
To what extent have tech solutions penetrated condo operations so far? What stands in the way of wider adoption?
Vargas: One example is facial recognition for access control, which has been implemented in many of our high-rise buildings. It’s improving the safety environment within our communities, and we expect this to become more prevalent.
We are continually developing tech solutions to help streamline daily tasks for managers so that our residents can enjoy their properties at ease. Each property is unique and our team curates the right tools and technology for each community. As an example, we identify mobile apps that provide residents with the ability to review their account and maintenance fees, make spa and dinner reservations, or summon their vehicle from their home.
How much have property managers’ duties changed since the work-from-home/hybrid work boom?
Vargas: When many employers were moving to a work-from-home solution, our property managers remained onsite, managing the operations. Now that so many of our residents are living, playing and working from our communities, demand has increased for a variety of spaces that can be used for work and meetings, including food and beverage options. Workers are looking for areas outside their apartments to work from and our staff creates spaces and amenities that inspire and energize those working from home. That’s what we do—anticipate needs and respond to ensure residents continue to enjoy and have pride in the condominiums they’ve chosen.
Property management differs from one asset to another, but do you see any notable geographic differences? What specific challenges are there in South Florida?
Vargas: There are some geographical areas that are more seasonal and easier to manage at certain points in the year. South Florida has become a fast-paced urban environment all year long. Our managers have become adept at juggling many tasks—from enforcing rules and regulations to managing an abundance of package and food deliveries.
Given that South Florida is a coastal community, we also have the reserve legislation, climate issues and deterioration, therefore the cost of maintenance or preventive maintenance is greater.
What would you choose as your top three keys to condo property management success?
Vargas: For all of us at FirstService Residential and specifically for our property managers, the three keys to success are service philosophy, sharp communication skills and leadership qualities.
