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Does your resort share their financials with members?
The recent situation with Camelot by the Sea in St. Petersburg Beach, where the HOA had not paid taxes in 3 years and the resort was sold at tax auction raises an important question. How open are our HOA's with their finances?
Under most corporate and condominium law, they are required to open their books at any reasonable time for inspection and even copying by members, but few members would probably take advantage of that.
One of my resorts on the OBX publishes its financials in its newsletter twice a year, so that members can see if anything is off the rails. The SA resort I currently own at, as well as the one I have sold, both publish detailed financials, with certified audit reports attached, once a year for members.
The Australian resort I recently sold my week at also publishes financial numbers once a year, but they have become more abbreviated since a new management company took over. My European resort does not, but I am suggesting they start doing so in their e-mailed newsletter.
Keeping financials out in the open for members IMHO is important for avoiding nasty financial surprises.
Under most corporate and condominium law, they are required to open their books at any reasonable time for inspection and even copying by members, but few members would probably take advantage of that.
One of my resorts on the OBX publishes its financials in its newsletter twice a year, so that members can see if anything is off the rails. The SA resort I currently own at, as well as the one I have sold, both publish detailed financials, with certified audit reports attached, once a year for members.
The Australian resort I recently sold my week at also publishes financial numbers once a year, but they have become more abbreviated since a new management company took over. My European resort does not, but I am suggesting they start doing so in their e-mailed newsletter.
Keeping financials out in the open for members IMHO is important for avoiding nasty financial surprises.
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