Blanket Receivership was first introduced to Florida in May 2009 as a legal method for Associations (Condominiums, Cooperatives and Homeowner’s Associations) to pursue rental income from both leased and vacant units that are delinquent in paying monthly Association dues. The tenants of such units are required by Court Order to pay their rent directly to a Court Appointed Blanket Receiver. The Blanket Receiver accounts for each unit’s delinquent balance, including late fees, interest, legal fees, and receivership costs, and makes monthly disbursements of the net collected rents to the Association.
Recent Blanket Receivership Court Orders have expanded the role of the Blanket Receiver by permitting him to take possession of delinquent units, complete renovations and lease them out. As the Blanket Receiver, JKM will fund such renovations on the front end at no out of pocket cost to the Association. JKM believes that the key to a successful Blanket Receivership program and therefore a financially healthy Association is the generation of income through the successful lease up of all abandoned units.
JKM has worked with several attorneys to develop detailed Blanket Receivership Court Orders that specify the duties of the Blanket Receivership and clarify his authority. Unit occupants who ignore and/or refuse to cooperate with the Blanket Receiver can be served to appear in Court. In addition, the Blanket Receiver can obtain Writs of Possession from the Court for non-compliant occupants and/or complete evictions.
The Blanket Receiver is responsible for meticulous record keeping and is typically required to submit quarterly reports to the Court for review. In addition, JKM believes in full transparency and takes these reporting requirements a step further by hiring a third-party accounting firm to complete a yearly audit for each Blanket Receivership property.