The Importance of a Safe and Sound Resort

By Gary Porter, FMP, RS, RRC, CPA                                                                                        June 2024

At a recent meeting of the Timeshare Board Members Association, Gary Porter, Chief Executive Officer of Facilities Advisors International, discussed the various aspects of creating a safe and sound resort. The following is a summary of his presentation.

Everyone here in Florida is aware of the tragic collapse of the Champlain Tower South condominium project three years ago. What many people do not realize is that this event was a watershed moment that significantly altered the entire condominium industry nationwide. As a result, Florida implemented a series of laws, which I refer to as a knee-jerk reaction to the incident.

These laws mandate inspections and reserve studies. However, I have always maintained that inspections and reserve studies alone do not prevent buildings from collapsing; maintenance is the only solution. These three elements – maintenance, inspections, and reserve studies – form the pillars of building integrity and safety.

The Pillars of Building Safety

Maintenance involves the ongoing upkeep of the building, which is far more complex than most people imagine. Inspections are essential, not just for structural integrity but also for regular maintenance checks to ensure timely upkeep. Lastly, reserve studies are merely financial plans for major repairs and replacements.

Having been in the industry for 40 years, I can confidently say that reserve studies are not maintenance plans; they are financial reflections of a maintenance program. A maintenance program encompasses everything being done or not done to maintain the property. A maintenance plan, on the other hand, outlines what should be done.

Types of Maintenance

There are three types of maintenance: preventive, corrective, and deferred. Preventive maintenance, as outlined in a maintenance plan, dictates what should be done to maintain any asset. Corrective maintenance deals with unplanned issues, such as a broken waterline that needs immediate fixing.

Deferred maintenance refers to tasks that should have been done but were neglected. Proper preventive maintenance significantly reduces the need for deferred maintenance, thereby saving costs in the long run.

Regulatory Changes Post-Champlain Tower South

The Champlain Tower South incident has led to a changing regulatory environment across the nation. Numerous buildings outside Florida have been red-tagged due to safety concerns identified during inspections. Several states, including New Jersey and Oregon, have enacted laws mandating structural inspections and maintenance plans for condominiums.

These regulatory changes are essential for ensuring the safety and longevity of buildings.

The Financial Aspect of Maintenance

Preventive maintenance is cost-effective in the long term. For instance, a dollar spent on preventive maintenance can save three dollars in deferred maintenance.

This is evident from examples such as a steel fence that rotted due to poor upkeep, which could have been preserved with regular painting. In contrast, Disneyland’s meticulously maintained 70-year-old fence has never required replacement.

Goals of Maintenance Procedures

Maintenance procedures aim to achieve four primary goals: safety, maintaining and improving property values, preserving lifestyle, and providing security. Safety is paramount, as highlighted by the Champlain Tower South tragedy.

Proper maintenance also enhances property values and preserves the lifestyle promised to timeshare resort visitors. Finally, ensuring the property is well-maintained provides security and peace of mind to residents.

Changing Reserve Study Standards

The Community Associations Institute (CAI) has revised its reserve study standards in response to these issues. The definition of a component now includes non-physical items such as fees for structural inspections. Additionally, there is a requirement to fund or disclose long-lived components, such as plumbing inside walls, which can be extremely costly to replace.

Proper planning and funding for these components are crucial to avoid extensive special assessments in the future.

Inspections

Inspections are critical parts of the maintenance process. There are three types: normal maintenance inspections, regulatory inspections, and structural inspections. Regular maintenance inspections are part of ongoing upkeep. Regulatory inspections, often required for specific components like pressure tanks, may necessitate specialized knowledge.

Structural inspections, which assess the integrity of the building, should be conducted by qualified professionals such as structural engineers or architects.

Reserve Studies and Financial Planning

A reserve study is essentially a budget for major repairs and replacements. It involves identifying and evaluating components, pricing them, and creating a funding plan. Florida has introduced the concept of the Structural Integrity Reserve Study, which emphasizes the importance of financial planning in maintaining building safety.

Planning Takeaways

While maintenance, inspections, and reserve studies may not be exciting topics, they are crucial for ensuring building safety, longevity, and value. The lessons learned from the Champlain Tower South collapse underscore the importance of proper upkeep and planning in the condominium industry.

For information about Facilities Advisors International, contact Gary Porter at 702-605-2394,  This email address is being protected from spambots. You need JavaScript enabled to view it.

Visit: www.facilitiesadvisors.com

Snow at Timeshare Resorts: A Double-Edged Sword

By: Gary Porter, FMP, RS, RRC, CPA                                                                                                                           August 2024

Snow, with its pristine white allure, can transform a landscape into a winter wonderland, attracting tourists seeking the quintessential winter experience. Timeshare resorts in snowy regions often capitalize on this seasonal charm, offering activities like skiing, snowboarding, and snowshoeing. However, while snow brings many opportunities, it also presents a series of challenges that resorts must navigate. From ensuring guest safety to managing increased operational costs, timeshare resorts must strike a balance between leveraging the benefits of snow and mitigating its potential downsides.

The Allure of Snow: A Winter Wonderland for Guests

For many, snow is synonymous with winter vacations. Timeshare resorts in areas like the Rocky Mountains, the Alps, or the Sierra Nevada often market themselves as winter escapes. The appeal is clear: snow-covered landscapes offer a variety of outdoor activities that attract tourists from all over the world. Skiing and snowboarding are the most popular, but activities like ice skating, sledding, and snowshoeing also draw visitors.

For example, a timeshare resort nestled in Colorado’s Aspen might see a surge in bookings during the winter months. The snow-capped peaks and well-maintained ski slopes make it a prime destination for skiing enthusiasts. Additionally, the ambiance of a cozy lodge with a roaring fireplace and snow gently falling outside creates a picture-perfect setting that many vacationers seek.

This winter demand allows timeshare resorts to charge premium rates during the peak season, thereby increasing revenue. Moreover, the seasonal influx of guests boosts the local economy as visitors spend money on dining, shopping, and entertainment. The snow, in this sense, becomes a key asset for the resort, enhancing its appeal and financial performance.

The Downside: Safety Hazards and Increased Liability

However, the presence of snow also brings significant risks. Icy paths, snow-covered roofs, and heavy snowfall can create hazardous conditions. For instance, a guest slipping on an icy walkway could lead to serious injury, and the resort may face legal and financial consequences. To mitigate these risks, timeshare resorts must invest in safety measures, such as regularly salting walkways, clearing snow from paths, and conducting frequent inspections of property grounds.

In one case, a resort in Vermont faced a lawsuit after a guest fell on an icy staircase. The resort had not adequately cleared the snow and ice, leading to the guest's injury. The resulting legal battle was costly, both in terms of financial settlements and damage to the resort’s reputation. This highlights the importance of rigorous snow management protocols to prevent accidents and reduce liability.

Additionally, snow accumulation on roofs can lead to structural damage. The weight of the snow can compromise the integrity of the building, leading to costly repairs or, in extreme cases, collapse. Resorts must regularly clear roofs of snow to prevent such damage, but this comes with its own set of risks, as workers tasked with clearing snow must be protected from potential falls or injuries. This necessitates specialized training and equipment, further increasing operational costs.

Financial Implications: Insurance, Housekeeping, and Maintenance

Snow can also drive up insurance costs for timeshare resorts. Properties in regions prone to heavy snowfall often face higher premiums due to the increased risk of weather-related incidents. Insurance companies may raise rates to cover the potential costs associated with snow damage, such as roof collapses, burst pipes from freezing temperatures, or even flood damage from melting snow.

Moreover, the operational costs associated with snow management are significant. Resorts must allocate budget for snow removal services, purchase de-icing agents, and maintain equipment like snowplows. Housekeeping staff may also need to work overtime to keep indoor areas dry and safe, as guests tracking in snow can create slippery conditions inside the resort. These additional costs can eat into profits, particularly if snowfall is heavier or more prolonged than expected.

For example, a timeshare resort in Lake Tahoe might experience unexpected heavy snowfall in early winter. While this initially brings in more guests eager to hit the slopes, the resort also incurs additional costs for round-the-clock snow removal, hiring extra staff, and purchasing more de-icing supplies. The financial burden of these unplanned expenses can be substantial, affecting the resort's bottom line.

Structural Integrity: The Hidden Costs of Snow

Snow’s impact on a resort’s structural integrity is another critical concern. Over time, the freeze-thaw cycle can cause significant damage to buildings. Water from melting snow can seep into cracks, and when temperatures drop again, the water freezes and expands, widening these cracks. This process, repeated over time, can weaken the structure of buildings, leading to costly repairs or renovations.

A timeshare resort in the Canadian Rockies might face ongoing maintenance challenges due to the harsh winter climate. The constant exposure to snow and freezing temperatures can cause gradual deterioration of the building's exterior. If not addressed promptly, this can lead to more serious issues, such as water damage, mold growth, or even foundational problems. Regular maintenance and timely repairs are essential to preserving the resort's structural integrity, but these efforts require significant investment.

To mitigate these issues, some resorts invest in advanced building materials designed to withstand harsh winter conditions. For example, using roofing materials that are resistant to ice dams or installing heated gutters can help prevent snow-related damage. Additionally, regular inspections and proactive maintenance can catch potential problems early, reducing the likelihood of costly repairs down the line.

Balancing Act: Leveraging Snow While Mitigating Risks

For timeshare resorts, the challenge lies in maximizing the benefits of snow while minimizing its negative impacts. Effective snow management strategies are crucial to achieving this balance. This includes not only removing snow and ice but also investing in infrastructure improvements, staff training, and safety protocols.

In regions where snow is a major attraction, resorts can also explore ways to extend the winter season and diversify their offerings. For example, a resort might develop indoor attractions, such as spas, fitness centers, or entertainment venues, that can generate revenue even when outdoor activities are limited by extreme weather. This approach not only mitigates the financial risks associated with snow but also enhances the resort’s appeal to a broader audience.

Conclusion: Navigating the Winter Wonderland

Snow can be both a blessing and a curse for timeshare resorts. On one hand, it enhances the guest experience, drawing visitors eager for winter adventures and allowing resorts to capitalize on the season’s unique appeal. On the other hand, it presents significant challenges in terms of safety, structural integrity, and increased operational costs.

For timeshare resorts, the key to success in snowy regions lies in careful planning and proactive management. By investing in safety measures, regular maintenance, and diversified offerings, resorts can navigate the challenges of winter while still reaping the benefits of the snow-covered landscape. In this way, snow remains an asset rather than a liability, helping to create memorable winter experiences for guests while ensuring the long-term viability of the resort.

Gary Porter, FMP, RS, RRC, CPA is the CEO of Facilities Advisors International and has prepared reserve studies for associations since 1982. As a Facilities Management Professional (FMP) he has training in all phases of facilities management. As a valuation expert he has testified at trial more than 50 times.  As a CPA he also focuses on the numbers. Gary is the author of seven books on financial aspects of community associations totaling nearly 5,000 pages and is also the author of more than 400 articles.  He has been published or quoted in The Wall Street Journal, Money Magazine, Kiplinger’s Personal Finance, The Practical Accountant, Common Ground, The Ledger Quarterly, Timesharing Today, Hawaii Building Trades, and The Florida Community Association Journal. Gary is a past president of CAI (1998) and was a founding member of the CAI California Channel Islands Chapter in 1979. 47 years as a CAI member. He resides in Las Vegas, NV. Facilities Advisors provides reserve study and maintenance planning services to associations nationwide.

Navigating Disaster Preparedness in Property Management: Insights from Gary Porter, CEO of Facilities Advisors International

By: Shep Altshuler – Publisher, Timesharing Today

In an era of increasingly frequent and severe natural disasters, property managers are under growing pressure to ensure financial and operational resilience. Gary Porter, CEO of Facilities Advisors International, has spent decades advising property associations on managing these challenges, with a focus on proactive planning, legal considerations, insurance strategies, and the integration of technology. Here’s an in-depth look at Porter’s insights on how property associations can prepare for and navigate the complexities of disaster management effectively.

Rising Frequency of Catastrophes and Readiness

Natural disasters like hurricanes, earthquakes, and wildfires have surged in recent years, creating mounting challenges for property owners’ associations and managers to maintain disaster readiness and manage financial reserves. The tragic collapse of Champlain Towers, Surfside Florida in 2021 heightened awareness of the need for stringent building standards and robust financial planning to prepare for such crises.

Porter cited innovative developments such as Hunter’s Point in Cortez, Florida, which features hurricane-resistant construction that has effectively minimized damage. “It’s about planning from the start,” Porter emphasized. “Risk management isn’t a one-time task; it requires continual investment and adaptation.” However, many associations lack the financial resources to implement these resilient building practices, often relying on post-disaster insurance or special assessments to cover repair costs, a process complicated by rising costs and frequent catastrophic events.

Insurance Challenges in High-Risk Areas

With escalating risks, insurance companies are reassessing their exposure in disaster-prone areas. Many insurers have increased premiums, added coverage restrictions, or even withdrawn from high-risk markets entirely, creating significant financial burdens for property owners.

To secure fair insurance payouts, Porter advises property associations to consider working with public adjusters who represent policyholders during claims processes. “Public adjusters ensure insurance companies honor the full extent of coverage in a policy,” Porter explained. They work to prevent insurers from minimizing payouts and ensure repairs meet policy terms, avoiding quick fixes that may inadequately address damages.

Despite the benefits, public adjusters come at a cost, and rising deductibles make it difficult for associations to rely solely on insurance. This has led some boards to explore self-funding parts of their disaster recovery plans to reduce dependency on claims negotiations and be prepared for immediate recovery needs.

Financial Planning and Reserve Studies

A core aspect of Porter’s work involves conducting reserve studies, which determine the funds an association should set aside for future repairs. Increasingly, associations are creating disaster-specific funds within these reserves, especially in high-risk regions, to allow quick access to funds when emergencies arise, thereby minimizing immediate financial strain on property owners.

However, creating such funds can be constrained by state laws or an association’s own governing documents, which may limit the use of reserve funds. “In those cases, we recommend creating an emergency fund outside the official reserve study,” Porter said. By taking this separate approach, associations gain a financial cushion to cover immediate disaster costs without relying on emergency assessments or loans, which may have lasting financial repercussions.

Special Assessments and Legal Considerations

When a property sustains severe damage, associations often need immediate funds for repairs. Porter explained that it’s common for associations to rely on special assessments to cover these initial costs while awaiting insurance claims. However, he noted that this approach can be legally complex.

“For example, if a building suffers hurricane damage, the board may need legal counsel to determine if reserve funds can be legally reallocated toward reconstruction,” he said. In cases where legal restrictions prevent using reserve funds for disaster repairs, associations may have to pursue special assessments or bridge loans, which can add financial burdens on property owners.

Special assessments can also pose challenges in communities with frequent ownership turnover. For instance, if an assessment is levied to fund repairs and ownership changes before insurance funds are recovered, questions arise about who should receive any potential refunds. “Imagine an assessment is levied after a disaster, but ownership changes in the interim,” Porter explained. “If funds aren’t fully used, who receives the refunds?” This scenario underscores the importance of considering the long-term implications of funding decisions during disaster recovery, particularly in cases involving ownership changes and potential reimbursements.

Integrating Technology for Better Property Management

Technological advancements are revolutionizing property management, offering new tools for financial planning, operational efficiency, and property health. Porter explained that dynamic reserve study software, which allows property managers to adjust records in real-time, has become essential for associations looking to keep their budgets responsive to changes in property conditions.

Maintenance Tracking Software

In addition to reserve study tools, Porter’s team has developed maintenance tracking software to support associations required to maintain state-mandated maintenance plans. This software not only helps meet compliance requirements but also allows associations to document completed tasks, strengthening long-term property health and reducing risks.

“Some states now require associations to create a maintenance plan.  Maintaining documentation of completed tasks is a difficult manual process, so we have developed maintenance tracking software to help associations build this record in real-time,” Porter noted. “It’s not just about meeting compliance; it’s about ensuring the property’s long-term health and lowering risks for owners and residents.” This detailed documentation also supports negotiations with insurers, potentially leading to lower premiums, and is a valuable asset in legal or regulatory evaluations.

New Blueprint and Mapping Technology

Legacy resorts, especially those converted from hotels or apartments, often lack updated blueprints, which can complicate planning and maintenance. Porter’s team now uses LIDAR and 3D scanning technology to generate precise, updated layouts of property interiors and exteriors, providing clear measurements that aid in budgeting, contractor communication, and disaster recovery planning. These detailed property records help associations secure accurate bids, effectively document property conditions, and support efficient planning and cost management.

Communicating and Reporting Financial Data

Clear communication of financial data is critical for boards and owners to make informed decisions about property management. Lengthy, complex technical reports can overwhelm board members, making it difficult for them to act on essential insights. Porter emphasized the need for simplified data presentations that show where funds are allocated and highlight priority areas.

His team provides visual summaries and concise financial snapshots that make complex data easy to understand, empowering boards to make timely, informed decisions. In one example, Porter’s team assisted a large resort with its first reserve study by creating a one-page summary of the property’s assets, offering the board a clear view of its financial standing for the first time. “That level of clarity is essential,” he explained. “It’s about distilling complex information into actionable insights, so boards can confidently navigate long-term planning.”

By simplifying complex information and ensuring data is easy to interpret, Porter’s team interprets data to create actionable information that helps associations effectively communicate financial health, making it easier for boards to allocate resources and prioritize property needs. This approach ensures that associations are equipped to make strategic decisions that support long-term resilience and property well-being, even in the face of growing environmental challenges.

Porter’s holistic approach to disaster preparedness illustrates how financial planning, legal compliance, and the adoption of advanced technology come together to support property associations in effectively managing disaster risk. Through well-structured reserves, dynamic technological tools, and clear communication, associations are better equipped to maintain resilience and stability. Proactive planning and informed decision-making are essential in navigating the challenges posed by today’s disaster-prone environment, enabling property associations to protect their assets and safeguard their communities.

About Facilities Advisors International

Facilities Advisors International is a leading provider of reserve study and facility management services. With extensive expertise in the hospitality industry, the company offers tailored solutions to ensure compliance with statutory requirements and long-term financial sustainability for resorts and property associations.

For information about Facilities Advisors International, contact:

Gary Porter
CEO, Facilities Advisors International
Phone: 702-605-2394
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Maintenance Planning: Regional Challenges for Timeshare Associations and Property Management.

By Shep Altshuler, Publisher, Timesharing Today

In a recent interview with TimeSharing Today, Shep Altshuler, Publisher, spoke with Gary Porter, CEO of Facilities Advisors. Porter discussed the importance of strategic maintenance planning for resorts located in diverse regions across the United States.

With different weather patterns and structural demands, each area presents unique challenges. Porter emphasized that tailored maintenance solutions are critical to ensuring the longevity and safety of properties. The following are the details of the interview.

Regional Challenges in Maintenance

According to Porter, effective maintenance planning is critical for the longevity of any resort or property, but it requires a customized approach based on the specific regional conditions — The challenges resorts face are diverse, with factors such as climate, soil quality, and exposure to environmental elements impacting each property differently.

In colder climates, properties must contend with freeze-thaw cycles, snow accumulation, and ice formation. Conversely, properties in desert regions face intense heat, sun exposure, and dry air, which can degrade certain materials over time. In coastal regions, salt air and humidity accelerate corrosion of metal components, which requires more frequent attention.

"There's no one-size-fits-all solution," Porter noted. "A maintenance plan that works well in one part of the country may be completely ineffective in another. We have to think about each location's unique environmental factors when creating these plans."

Impact of Climate on Building Materials

Porter explained that the materials used in construction vary greatly depending on the region, and these choices significantly influence the maintenance strategies a property will need. In some parts of the country, metal and wood components might perform well — In other areas, those same materials could deteriorate quickly.

For example, in humid regions, wood might be prone to rot and requires consistent treatment to protect it from moisture and pests. In dry climates, wood can crack and split without proper care. Similarly, metal can withstand the dryness but may rust quickly when exposed to coastal salt air, requiring periodic inspection and maintenance to prevent corrosion.

"Building materials are just as important as the environmental conditions when planning for maintenance," said Porter. "We take both into consideration when developing long-term strategies for our clients."

Structural Integrity and Long-Term Planning

Structural issues are another area where maintenance planning is essential. Facilities Advisors has worked with properties experiencing a wide range of structural problems, from foundation issues to compromised supports. These problems often arise from environmental factors that put unique stress on buildings, such as soil movement, storms, or gradual degradation of materials.

Porter shared how ongoing monitoring and regular inspections can catch structural problems early. Properties with improper drainage systems, for example, are at risk of foundation damage due to water buildup. Regular monitoring of the property’s drainage systems can prevent these costly issues.

"Preventive measures are key to avoiding significant problems down the line," Porter explained. "Regular inspections can identify small issues before they become large, expensive repairs."

The Role of Reserve Studies in Maintenance

Porter emphasized the relationship between reserve studies and preventive maintenance, noting that both are critical components of a property’s overall health. Reserve studies help identify when major systems or components, like roofs or HVAC systems, will need to be replaced. However, reserve studies alone aren't enough—they must be complemented by a robust, ongoing preventive maintenance plan.

"Think of reserve studies as your roadmap for large repairs and replacements," Porter said. "But preventive maintenance is what extends the life of those components and ensures that your major investments aren’t compromised by smaller, everyday issues."

For example, regular upkeep like cleaning gutters, inspecting HVAC systems, and maintaining exterior materials such as siding or windows are all preventive measures that can significantly delay the need for costly repairs or replacements.

Timing of Engagement: When to Bring in Experts

Porter was clear on the importance of timing when it comes to maintenance planning. "The right time to start maintenance planning is now," he advised. "Many properties wait until there's a crisis, which leads to much higher costs and more complex repairs."

Engaging with consultants like Facilities Advisors early in the process can prevent deferred maintenance and costly emergencies. Porter pointed out that when routine maintenance is neglected, problems can grow exponentially. A small leak that isn’t addressed can lead to mold growth or structural damage, for example, adding thousands of dollars to repair bills that could have been avoided with early intervention.

"Waiting until a problem becomes serious is a mistake we see far too often," Porter said. "Proactive planning will always save you money and headaches in the long run."

Maintenance Manager Qualifications

Porter also stressed the importance of having a qualified maintenance manager on site. "A good maintenance manager doesn’t need to be an expert in every discipline but should know how to hire and manage experts for tasks like plumbing, electrical work, or structural repairs," Porter explained. The key to effective maintenance management lies in the ability to oversee a wide range of tasks and coordinate efforts with qualified specialists.

Facilities Advisors advocates for training and certification programs to ensure that maintenance managers stay up-to-date with the latest building standards, regulations, and technologies. Organizations like the International Facilities Management Association (IFMA) offer valuable certifications that equip maintenance professionals to handle the evolving demands of property management.

Comprehensive Maintenance Process

When a property first engages Facilities Advisors, the process begins with an on-site assessment. This analysis often includes a reserve study, which identifies the major components of the property that will require future repair or replacement. The team at Facilities Advisors then works with the property to develop a comprehensive maintenance manual tailored to that property’s specific needs.

"The goal is to create a clear plan for preventive maintenance, which includes day-to-day upkeep and long-term planning," Porter explained. "By outlining what needs to be done, when, and how, we help properties stay ahead of potential problems and keep everything running smoothly."

Adapting to Industry Changes

Facilities Advisors has seen a marked increase in inquiries following the Champlain Towers collapse, which brought renewed attention to structural integrity and maintenance oversight. "There’s a new level of urgency among property managers now," Porter said. "People are more aware that deferred maintenance can have tragic consequences."

Facilities Advisors has helped clients re-evaluate their maintenance programs in the wake of such disasters. According to Porter, more and more properties are now looking at long-term planning, with an eye toward safety and sustainability.

"Property managers and boards are becoming more proactive," Porter added. "It’s not just about keeping the property looking good—it’s about making sure the buildings are safe, functional, and well-maintained for the long haul."

About Facilities Advisors:
Facilities Advisors is a leading consulting firm specializing in maintenance planning and reserve studies for residential, commercial, and resort properties across the United States. With a client base of over 2,000 properties, Facilities Advisors provides tailored solutions that take into account the specific environmental, structural, and operational needs of each location. For more information: Call Gary Porter, FMP, RS, CPA, RRC, Facilities Advisors International, 702-605-2394, Email: This email address is being protected from spambots. You need JavaScript enabled to view it..