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Subject: Business Model for small Condo Association
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SusanG11
(Massachusetts)

Posts:13


09/29/2020 5:17 PM  
Hi All,

I am the president of a small condo association - we have just 5 units in one building. We have a mix of owners - 2 year round, 2 seasonal, and one is rented out by the year. Our two year-round owners are selling. This forces us to examine our method of 'property management'. We have always gotten by with owners taking responsiblity for maintenance and repair. We do some smaller jobs - weeding, changing lightbulbs, batteries, etc. For larger jobs or repairs, someone takes on the job of hiring, getting quotes, supervising, ordering supplies, scheduling maintenance, trash removal, snow removal, inspections, etc. This is all voluntary, and as you can imagine, the year round owners have shouldered more of the burden. Even before the two units went on the market, we felt that this 'mananagement model' was not sustainable, and now its more apparent then ever.

We interviewed a Property Management company - but we cannot afford them - they charge a monthly fee and bill hourly for everything else. Maybe that particular company was not right for us..

What we really need is 'someone' that will manage the day-to-day needs of the property, and do all the things mentioned above. We do not need administrative help, rent collection, running meetings, or those types of things.

So my question is - what do other small condo associations do? With only 5 units, our budget is not huge. We have no idea how present or 'involved' the two new owners will be. We just really want to have a safe and well-maintained property....

THank you!
TimB4
(Virginia)

Posts:17008


09/29/2020 5:32 PM  
Susan,

Please refresh my memory, are you the one selling, seasonal or renting?

If nobody is willing to step up and do those things, the remaining owners might want to find a handyman (handy-person?) you trust and is fair.
This way, the board can call them to take care of the little things.

To be honest, someone needs to step up or you will need to raise assessments to pay for a property manager/management company or simply live with it and see what happens.
SusanG11
(Massachusetts)

Posts:13


09/29/2020 6:07 PM  
I happen to be, at this point, seasonal - not retired yet, and the Pres. of the Association. I do what I can online, phone etc. My concern was that today, we have people willing to do all this work. But who knows in the future - we could have owners that do not want to get involved - or all year-round renters with long-distance owners, then what? We thought of a handy-person type arrangement, but how to find someone reliable, knowledgeable, fair - and how to pay, schedule,contract,etc? emergencies? We have been searching for someone like that too. And interested what other small-budget small-associations do...
GenoS
(Florida)

Posts:4130


09/29/2020 6:57 PM  
It's going to cost you more. The real cost of living there has been hidden by the availability of some owners to volunteer a lot of their time to work on the assocaition property. That will cost a lot of money to replace. That's something you will just have to learn to cope with. The most unpleasant realization might be that some of the owners may not, in fact, be able to afford living there once the true costs are exposed.
AugustinD


Posts:4153


09/29/2020 6:58 PM  
Posted By GenoS on 09/29/2020 6:57 PM
It's going to cost you more. The real cost of living there has been hidden by the availability of some owners to volunteer a lot of their time to work on the assocaition property. That will cost a lot of money to replace. That's something you will just have to learn to cope with. The most unpleasant realization might be that some of the owners may not, in fact, be able to afford living there once the true costs are exposed.
Exactly.
JeffT2
(Iowa)

Posts:565


09/30/2020 3:31 PM  
I suggest you amend you master deed to restrict rentals. Here are some ideas:

One such restriction is that a new owner cannot rent during the first year of ownership, which generally discourages investors from flipping a condo unit into the rental unit. You can also limit renting to three years maximum. You can also put a cap on the percentage of rentals (the number of rental units) in the property as a whole, or completely ban rentals altogether.

Your existing rental may need to be grandfathered.
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Forums > Homeowner Association > HOA Discussions > Business Model for small Condo Association



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