NEWSREAL

A publication of IREM - Central Florida Chapter

Volume 3, Issue 7
July, 2002

The Internet Site for Professional Real Estate Managers

A WORD FROM THE PRESIDENT......

Budget season is quickly approaching and in recognition of that I wanted to talk about budgeting and put together a list of tips to assist you in the budget process. Most importantly, my number one tip is, increase income and decrease expenses and budget more income than expenses. I guarantee that your owner/ client will appreciate this approach. It is hard to top such sound advice but please read on.

Budgeting is a detailed process and it is easy to get so involved in the formatting and the many procedural requirements that analyzing and critical thinking are sometimes given a secondary priority. But don’t forget that a significant component of budgeting is the comprehensive property review to determine strengths and weaknesses and identify needs. The budget preparation process allows us to set priorities and map out strategies and provides the framework for making sound and well-reasoned management decisions.

I would suggest the budget process is the single most significant management function we fulfill. The author of IREM’s book, Managing the Office Building supports this idea when he states, "…the budget is critical to achieving an understanding between a building owner and its manager. A thoroughly prepared budget, annotated with explanatory footnotes, promotes confidence between the manager and the client."

Given the significance of the budget process and the importance of producing a detailed and accurate budget it is comforting to know that IREM members have several resources they can call on for support and assistance. Ask our Friends of IREM for technical assistance and cost estimates. Friends of IREM have pledged to support our membership in this fashion and believe me they welcome the questions and opportunity to help. They will provide this assistance with no obligation and/or strings attached. Sure they want your business but each one of them knows that the best way to earn it is to be a source of reliable and accurate information. A list of the Friends of IREM is at the bottom of this article. Use them as a resource and you will be glad you did.

Another valuable source of information is our membership. If you have a situation that is unique or one that you haven't previously encountered there is a good chance one of members has experience with that issue. Call around and I am sure you will find some assistance. I know this because I have done it and have learned that tapping into the experience resources of our membership produces valuable results. Finally, don't forget the IREM Income/Expense Analysis Book. This is another significant budgeting tool and excellent source of financial benchmark information.

Happy budgeting!

Mike McConnell, CPM
MMcconn111@aol.com

Call on our Friends of IREM for budgeting assistance...

SUMMARY OF EXECUTIVE COUNCIL MEETING

May 9, 2002

• Golf tournament scheduled for May 10 has nearly 80 registrants. Participation is down from last year but exceeds all prior years.
• The Orlando Business Journal will carry a full-page article on the Golf Tournament in early July.
• The Intro to Managing Real Estate Maintenance Operations (MNT201) course will be held on June 19 and 20. Steve Easton will be the instructor.
• The Education Committee proposes holding the course, Successful Site Management (RES 201), twice in 2003. It was proposed the course would be held both in the first quarter and the fourth quarter.
• The Education Committee proposed offering the new course, Responding to Terrorism, in late July. Robin Stinson will research and report back at the next meeting.
• It was announced that the Resident Data National Registry now offers FBI checks on prospective residents.
• Three new CPM's, Greg McGinnis, Mark Ogier, and Fred Peirce, and two new ARM’s, Kimberly Morton and James McKinney, will be awarded their pins and certificates at the July membership meeting.
• The latest in Techno Gadgetry will be the topic for the July meeting and will feature speakers from Call Source and CompuServe. The topic for the September meeting is Toxic Mold and speaker(s) are being sought. Email suggestions to Mike McConnell.
• The 2002 Member Directory was mailed out to all members in early June. If you did not receive your copy, contact Meridythe Kanaga, Chapter Administrator.
• President-Elect, Robin Stinson and the nominating committee are seeking to fill officer positions and Committee Chair positions. Interested members should contact Robin Stinson.
• Dates for 2 important planning sessions were approved. Development of a Long Range plan for the Chapter will be addressed at a work session scheduled for August 3 from 9am to Noon. The Chapter’s annual planning meeting for Officers and Committee Chairs will be held from 9am to Noon on August 24. All members are encouraged to attend and participate in these important meetings.
• Georgia Zampella from CNL was approved as an Associate Member.

CPM OF THE YEAR

CPM CANDIDATE OF THE YEAR

ARM OF THE YEAR

Nominations are now being accepted for the 2002 CPM of the Year, CPM Candidate of the Year and the ARM of the Year. These prestigious awards will be presented in November to the individuals who have made outstanding contributions to the Chapter, the real estate management profession and the community. Nominees will be announced in August and the winners selected by a secret ballot vote of the general membership. Please submit nominations to Meridythe Kanaga, CPM, Chapter Administrator (admin@irem-centralfl.org).

SCHOLARSHIPS NOW AVAILABLE!

IREM and the IREM Foundation are now offering more opportunities to apply for the Minority Outreach Scholarship and the Paul H. Rittle Sr. Memorial Scholarship. Up to five Minority Outreach Scholarships and an unlimited number of Rittle Scholarships will now be awarded each quarter.

Applications for these scholarships may be submitted at anytime. Completed Applications will be reviewed each quarter beginning in April. The next quarterly review is September 2002. If you are interested in making application for one of these scholarships please contact, Meridythe Kanaga, CPM, Chapter Administrator at admin@irem-centralfl.org or 407.862.2292 ext 10.

The Paul H. Rittle Sr. Memorial Scholarship benefits students needing assistance to attend IREM courses. The Rittle Scholarship covers course tuition and related costs. Scholarships are based on financial need and commitment to a career in property management.

The Minority Outreach Scholarship benefits minorities wishing to pursue the CPM designation. The Scholarship covers course tuition needed to attain the CPM designation and provides a Mentor. Applicants must meet the qualifications for CPM candidacy and be nominated by the local chapter.

IREM ASSOCIATE MEMBER PROGRAM – AMENDMENT TO BYLAWS

The Executive Council has approved two proposed amendments to the Chapter Bylaws that will be voted upon at the July 16 general membership meeting. The first amendment provides Associate members will hold membership within the Chapter. Individuals can now join IREM National as an Associate Member and each Chapter has the ability to determine if it wants to include Associate Members within the Chapter membership. The amendment revises Section 4 of the Chapter Bylaws by adding a new subsection 2.2.1. The text of the proposed amendment is as follows:

2.2.1 Associate members. This chapter shall have among its nondesignated membership those individuals within its jurisdiction who hold national associate membership. The benefits, services, and rights of associate members to participate in the governance of the chapter shall be determined by the Executive Council provided such rights are not inconsistent with any other articles of these bylaws or the IREM national bylaws. Associate members shall not be assessed annual dues by the chapter; however, the chapter may choose to offer an optional service package to associate members for a fee. Acceptance or refusal of such a service package shall not affect the membership status of the associate member.

If you want to learn more about this proposed Bylaw amendment please see the May edition of the NewsReal (a copy is available at IREM60.org).

The Executive Council also approved a change in the composition of the Executive Council, adding the immediate past President. The proposed amendment to Section 7 of the Bylaws is as follows:

Section 2. COMPOSITION. The Executive Council shall be composed of the elected officers of this chapter, the immediate past President and at least three (3) other members, at least one of whom is an ARM member, unless there is no ARM within the chapter jurisdiction, elected by the active membership of this chapter for a term of one (1) year or until their successors are elected and installed. Members of the Executive Council shall be eligible for re-election.

Both of these proposed Bylaw amendments will be voted upon at the July membership meeting.

Terrorism Insurance Passes!

After month of haggling, the US Senate finally passed terrorism insurance legislation. On a vote of 84 –14 the “Terrorism Insurance Act” (S 2600):

• Provides for the government to pay 90% of the financial losses occurred in a terrorist act if the exceed $10 billion.
• Provides for insurance companies to pay a portion of the losses (based upon market share) and then would receive reimbursement for 80% of additional losses by the government IF the total losses were less than $10 billion.
• Does NOT prohibit the collection of punitive damages in terrorism-related lawsuits (the House version passed 2001 DOES)

OUTLOOK: A conference Committee will convene to review the House and Senate bills, hammer out the details, and send a final version to President Bush. The White House has stated that President Bush will veto legislation that doesn’t prohibit punitive damages.

Your Attendance is Requested

This August our chapter will be holding two very important meetings. They are the annual planning meeting (August 3, from 9 a.m. to noon) plus a long range planning meeting (August 24, from 9 a.m. to noon). Your attendance and thoughts, especially for the long range planning meeting, are not only welcome but encouraged.

As we think about the future of our chapter and to it's continued development, ideas from our general membership to sustain the chapter are vital. We realize everyone's time is valuable and attending yet another meeting is sometimes just not in the cards! If you are unable to attend, participate by giving this topic some thought and emailing your ideas to Scott Pollock (Pollock@kua.net). Consider how we might promote our profession both within and outside the real estate industry via membership support, education offerings, interaction with related real estate organizations, community support programs, etc.

Thank you and I look forward hearing your ideas, either in person or via e-mail.

Scott Pollock, CPM

Grip It and Rip It

The fifth annual IREM/CFCRES charity golf tournament to benefit The Arnold Palmer Hospital For Children and Women was held on June 7th at the international course at Champions Gate Golf Resort. This year’s event featured several celebrity golfers including Tampa Bay Bucs’ Anthony MacFarland; Atlanta Falcons’ Robert Stevenson; San Francisco 49ers’ William Floyd; Denver Broncos’ Reggie Johnson; and Chicago Cubs’ Heathcliff Slocum.

We raised over $12,000 for the hospital. Thanks to our corporate sponsors: Beers/Skansak and Sentry Electric Inc. - Signature sponsors ($5,000); and HLM, Inc. – Gold sponsor ($2,400).

Thanks are also due to Contra Vest for sponsoring the $10,000 putting contest and Commercial Air Conditioning/Commercial Electric for sponsoring the hole-in-one contest. Personally, I want to thank Peggy Hunnings (McKinley Properties) and Gloria Dowling (Highwoods Properties) for a super job in securing some great raffle prizes!

Last, thanks to everyone who played in the tournament. Plans are already underway on next year’s tournament. As soon as the date and location are confirmed, it will be announced in our newsletter. Catch you on the links next year!

Scott Pollock, CPM

2002 FLORIDA IREM EDUCATION

NEWSLETTER SUBMISSION DEADLINE

Anyone wishing to submit articles, thoughts, comments or concerns for the upcoming newsletter must do so before July 29th. Please submit all materials in Microsoft Word format and e-mail to: drdotherow@realtycapitaltcn.com

Published by IREM Chapter 60 Newsletter Committee, Jane Bullock, CPM, Chairperson

Administrative Office
PO Box 1229
Orlando, FL 32802
Attn: Meridythe Kanaga, CPM, CAM
admin@centralfl.org

Tel: 407.862.2292 x. 10
Fax: 407.862.1819