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AmyB3
(Florida)
Posts:2
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| 07/02/2008 5:46 AM |
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Our condo association (FL) has an illegal contract with our property management company that does not benefit all owners.
We contract out our property management with a big, international firm. As part of this agreement, they rent the on-site office building we own (that is the check-in point for all the area rentals)as well as a maintenance building that houses all the maintenance workers, vehicles, parts and equipment for the whole area. The office building pays monthly rent (well below market price) but the maintenance facility and all parking spaces they use is leased free of charge as "quid pro quo" (something for something) as they give a 50% discount on maintenance charges to owners that are on their rental program.
Therein lies the problem: not all owners use this company to rent out their condos and some condos are non-rental. The management company policy only allows them to perform maintenance on their rental units, period. Bottom line is: they get free rent, some owners get a discount on maintenance charges and while others see no benefit. We pay our own maintenance people.
When this was brought up at the annual meeting in Nov 2007,they claimed the space utilized by the maint. office was "substandard office space" so they couldn't charge rent ? but when pressed it was determined to be unfair. The property management contract was expiring in Jan 2008 and we were assured by the board that this unfair arrangement would be remedied. I have been requesting a copy of the new contract since January of this year and as of July 2, 2008 have not seen it. Our property manager has completely ignored all requests to see this contract! What should I do next? |
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JohnK3
(Pennsylvania)
Posts:459
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| 07/02/2008 10:54 AM |
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Amy,
Only a narrow range of contracts are "illegal" (such as, say, an agreement to commit a criminal act). Unfair is another issue, although as to what you've stated, not necessarily the case here, though we'd need more background, starting with any especially favorable advantages this contract might afford to your Board members.
Anyway, if the PM won't let you see the new contract, ask the Board to let you see it. If the Board also refuses, that opens a new can of worms for debate.
Keep us posted. |
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SusanW1
(Michigan)
Posts:2176
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| 07/02/2008 11:07 AM |
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So - the PM gets a maintenance equipment storage space provided free by the HOA - in exchange for offering a service to rental-unit homeowners for a 50% discounted fee - but not all homeowners choose to or can get the service.
It seems like this a part of the PM's contract and while it is not illegal, the Board needs to assure its members that what it "gives away" is worth it in services returned to the association.
Insist on the Board justifying the "deal" - while at the same time, figure out what the market value really is for this storage building that they are using. They may be right in that its use is limited and this seems to be the best deal for all concerned.
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