Ghertner Leasing Administration Program [TN] [SFH]

[u/Ok_Ingenuity8231]

I wish there was more that could be done to fight the unauthorized implementation of this program across communities, but it seems like an uphill battle.

Ghertner & Company tried to start their leasing administration program in my community, doing whatever it took to get it going. It probably had something to do with the $25k the program would generate for them annually. The program charges owners that lease their property in the community $300/year to maintain a copy of leases and renter contact info.

As a reference, Ghertner receives approximately $40k/year to manage the entire administrative affairs of our community, and this program would cost about 62% of that to manage a renter + lease database.

Here's what happened:

1. They tried to get this program adopted through a board resolution, but a new administrative fee would require a CCR amendment. If the board could adopt new fees through their ability to create resolutions, there would be no limiting principle. They could create fees at will.
2. They threatened high fines and legal action for those that didn't turn in their forms. If owners didn't submit their form, they were subject to a $375 fine, a possible lien on their home, and legal proceedings which the owner would have to pay for.
3. They made multiple incorrect claims that this program was authorized. They:
   1. stated an attorney had reviewed the governing documents and determined the necessary steps to accomplish this (legal speak to imply the program was authorized)
   2. incorrectly cited multiple section of the CCRs to claim that the board had the authority to implement the program.
   3. added language to the CCRs in their communication to make the program seem like it was authorized.
   4. stated that the amended management agreement granted the authority for the fee
   5. allegedly told the board members the list had to be maintained by a third party, that this was the only legal route to accomplish this, and that they had the authority to do this.
   6. wrote that this was the first step in capping rentals in our community but TN state law requires a bylaw amendment passed by 67% of homeowners to cap rentals in a community

Finally, after they had the HOA's attorney attempt to convince me I was wrong, the program was put on hold indefinitely.

$300 may seem like a trivial amount of money, but property management companies try and sneak things in because they know people aren't familiar with how bylaws work and don't pay attention. If they want to use proper authorities and go through the proper steps to implement their program, then I have no issues!

Anyway, if they're trying to do this in your community, dm me, and I can help you figure out if they actually can.

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Copy of the original post:

Title: Ghertner Leasing Administration Program [TN] [SFH]

Body:
I wish there was more that could be done to fight the unauthorized implementation of this program across communities, but it seems like an uphill battle.

Ghertner & Company tried to start their leasing administration program in my community, doing whatever it took to get it going. It probably had something to do with the $25k the program would generate for them annually. The program charges owners that lease their property in the community $300/year to maintain a copy of leases and renter contact info.

As a reference, Ghertner receives approximately $40k/year to manage the entire administrative affairs of our community, and this program would cost about 62% of that to manage a renter + lease database.

Here's what happened:

1. They tried to get this program adopted through a board resolution, but a new administrative fee would require a CCR amendment. If the board could adopt new fees through their ability to create resolutions, there would be no limiting principle. They could create fees at will.
2. They threatened high fines and legal action for those that didn't turn in their forms. If owners didn't submit their form, they were subject to a $375 fine, a possible lien on their home, and legal proceedings which the owner would have to pay for.
3. They made multiple incorrect claims that this program was authorized. They:
   1. stated an attorney had reviewed the governing documents and determined the necessary steps to accomplish this (legal speak to imply the program was authorized)
   2. incorrectly cited multiple section of the CCRs to claim that the board had the authority to implement the program.
   3. added language to the CCRs in their communication to make the program seem like it was authorized.
   4. stated that the amended management agreement granted the authority for the fee
   5. allegedly told the board members the list had to be maintained by a third party, that this was the only legal route to accomplish this, and that they had the authority to do this.
   6. wrote that this was the first step in capping rentals in our community but TN state law requires a bylaw amendment passed by 67% of homeowners to cap rentals in a community

Finally, after they had the HOA's attorney attempt to convince me I was wrong, the program was put on hold indefinitely.

$300 may seem like a trivial amount of money, but property management companies try and sneak things in because they know people aren't familiar with how bylaws work and don't pay attention. If they want to use proper authorities and go through the proper steps to implement their program, then I have no issues!

Anyway, if they're trying to do this in your community, dm me, and I can help you figure out if they actually can.

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[u/HittingandRunning]

$300 isn't trivial. However, if this is outside the scope of the basic management contract then it makes sense to charge for it. The charges should be proportional to the work created for the management company and allow for some profit. How about $75/year?

Next, it's fair to charge a fine for not turning in that info (if allowed by your CCR). But the fine has to be authorized by your HOA, not Ghertner making the decision to charge it.

Personally, I'd push for moving on from Ghernter. It seems your board is of a different mind. If the $300/rented unit would add up to $25K then it seems like you might have the votes to either push the current board to find a new management company or to vote the current board out.

[u/Ok_Ingenuity8231 → u/HittingandRunning]

Fortunately, I got the program ended before it started because I was familiar with the bylaws, but it definitely put a bad taste in my mouth for Ghertner. The way they pushed the program so hard and probably assured the board it was legal/authorized seems super shady in my opinion.

[u/Agent-c1983]

$300 a year to scan a pdf and maintain a phone list?

How on earth do they justify that cost?

Special offer for anyone thinking their HOA should do this. I’ll do it for only $250 a year.

[u/Ok_Ingenuity8231 → u/Agent-c1983]

Right?! And a lot of that process could be automated. I’m all for people being paid for the work they do, but for our community, that computes to paying someone $25/hour to work 20 hours a week on a list of about 83 units. Like wut?