W.B. from Collier County, Florida writes:
Dear Mister Condo,
Since our quarterly maintenance fees have increased 139% since 2001, I am reviewing all expenses. The payroll is the largest expense. I have asked our board to know the salaries of our General Manager, Operations Manager, Administrator and Assistant Administrator. I was told that I need to request in writing permission to inspect records, but payroll records would not be available anyway. I have no desire to physically inspect any personnel files, payroll records or health and insurance records. I just want to know the salaries, value of association paid health benefits and 401K percentage contributions by the association. The Florida statute is 718.111 As an owner, am I and other owners who pay these salaries, entitled to know what we are paying? Thank you very much!
Mister Condo replies:
W.B., theoretically, yes, practically and legally, no. I completely understand your interest in finding out where your money is going but salary records and most personnel records are off limits to association members. If you examine the Annual Budget, you will see a ballpark of what is being spent on personnel. You can assume that General Managers and other Management folks are paid more than administration staff but, unless you are on the Board and privy to that information, the exact details do not have to be revealed to you as an association member. Remember, you elected the Board to oversee the day-to-day dealings on the employees of the association. You need to respect that they are doing just that and not paying more than they need to for the talent they have running your association. Hope that helps!
2% a year compounded, not particularly outrageous with inflation running about the same. One way is to start is to compare the budget categories from 2001 to the latest budget in the same categories. Did Salaries go up somewhere around 39%? Utilities? Landscaping? Insurance? Reserve contributions? etc.
That’s not proper to ask for salary information. Instead ask for the breakdown of their fees. If they are to high renegotiate your payment to the management company. There probably charges that you don’t need or you can reduce. If they don’t want to work with you get bids from other management companies. They can’t bully you into paying large fees, but employee salaries has nothing to do with your charges. Ask questions why do you have so many top heavy managers? How large is your property? Do you really need all these managers? Do they charge you for meetings? How many are you having? Do they charge you for minutes, mileage, do they increase your monthly fee every year……?