Why Aren’t Condo Associations Transparent With The Market?
For nearly 15 years, we have discussed the need for a rating agency approach – modeled after Wall Street – to evaluate the financial health of the thousands of condo associations that exist in Florida. It would be much easier to do today than it was more than a decade ago given the advancement in big data and the potential for artificial intelligence.
Property management companies and condo associations have always resisted the idea for a number of reasons, including losing their competitive advantage as a result of disclosing material information about the financial health of their respective communities.
Think about it, well-run condo associations – much like publicly traded companies – could garner higher prices on the resale market while poorly-run communities could be penalized, in terms, of valuations.
It was not until the June 2021 collapse of the Champlain Tower South condominium in the barrier island city of Surfside in Miami-Dade County that people took notice. New Florida legislation, heightened governmental scrutiny and demands by the insurance industry could make this moment that condo associations are finally forced to reveal what they are doing and why.
Given our mission of bringing straight talk to South Florida’s overhyped South Florida real estate market, we think this could finally be the time to pursue the launch of what we call the CondoRatingsAgency.com.
In the months ahead, we will working to make that reality for buyers, sellers, lenders and insurers. If you have any questions or comments, please reach out to me at 305-865-5859 or firstname.lastname@example.org.
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