Creative Financing Options From Cell Phone Towers to Clubhouse Rental

 The rippling effects of the recent recession has required all boards and  property managers to investigate progressive ways to ensure that their bottom  line is covered. While the latter has always been the inherent goal, the  existing tenuous economic climate has placed more emphasis on finding creative  financial solutions via new revenue streams.  

 To this end, there are numerous ways boards can increase revenue including  installing cell phone towers or cable/satellite services on the roof, putting  in vending machines or storage lockers, or contracting with companies for  advertising billboards and signage. However, there are also numerous obstacles,  regulations and concerns to be addressed before potential revenue can be  realized.  

 “The idea of creative revenue generation triggers the notion of a broader fiscal  analysis,” says Attorney Kenneth Direktor, director of the Community Association Practice  Group for the law offices of Becker & Poliakoff in West Palm Beach. “A board or managing agent must look at ways to create revenue that will place as  little financial burden on the owners as possible.”  

 For small to mid-size buildings, the ability to traverse this often rugged  topography can be taxing. With capital improvement projects, emergency repairs  and general maintenance an ever increasing cost, often any revenue realized  simply offsets fees and price spikes to residents. To be affective, a  multi-tiered approach is required without losing perspective.  

 “The function of an association is not really to focus on external revenue  sources,” says Ken Arnold, CEO of Miami-based Association Financial Services. “Its function is to maintain the facility, and the maintenance fees maintain the  facility.” After due diligence is executed and standard board operations are addressed,  then focus can be placed on investigating new revenue streams, notes Arnold.  

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