Advice on small condo associations wanted

May 15, 2007 7:07 PM

I'm looking to buy a condo in Cambridge, MA, where many of the attractive properties are old, multi-family houses, with 2-6 units each. I have some reservations about buying a condo with such a small group of people running the association.

These properties all seem to have a condo association consisting of the few owners within the building.

My concerns include:

-- If we can't afford to have a professional company manage the association, who does the managing?

-- One of the homeowners absconding with the association reserves.

-- Being assessed a fee for a large repair (roof repair, siding replacement) if the association reserves don't cover it and I don't have the money to cover the expense.

-- Wanting to make a repair/renovation to a common area and the other homeowners don't agree.

-- Other miscellaneous disagreements, especially considering that I have to live in close proximity to the other board members.

There must be hundreds of these small condo associations in Cambridge, and many more elsewhere, so I assume that people get them to work -- so any success stories would be appreciated, too.

Thank you!

posted by scottso17 to work & money (5 comments total)

I think that having a small condo association is great: you avoid the money-grubbing management companies and high condo fees and you get to have a real say in how the building is managed. On the other hand, you may be on the hook for a little more work than in a larger building: snow clearing, cleaning common areas, etc. might be shared tasks rather than something you pay someone else to do.

Regarding your concerns:

1) Most likely, one of the owners will handle the money and you'll have a meeting every so often to authorize repairs, etc.

2) Unlikely, since they will still be living next door to you.

3) There are two types of repairs in this case: things that need to be replaced once they wear out (roofs, siding) for which you should have plenty of warning ahead of time and things that need to be fixed because something bad happened (which is what your building insurance will cover).

4) Possibly, but surely you have a better chance of getting what you want in a group of 2-6 than from a larger group or management company. The common areas are common so everyone should have a say.

The best thing to do would be to ask to meet the person who managed the accounts for the association before you make an offer. Ask them how things are handled (and when that roof next needs replacing).

I owned a condo in a similar situation (6 units, in Montreal) and had no problems. All I did was shovel the snow once and while, clean the hall and stairs from time to time, pay my fees and insurance, and attend a meeting once a year to hear about the finances and authorize repairs.
posted by ssg at 7:41 PM on May 15, 2007

Most condo docs spell out governance structure, decision-making processes, fees, financial best practices, legal recourse and more. You may rotate duties with the other owners, decide things through consensus rather than majority, increase fees temporarily to plan for a new roof in 5 years, and spell out the ramifications of someone not meeting their monthly fees. Or it could be completely different. If you're working with a real estate agent, I'd ask them for some samples of condo docs that they think are reasonable and similar to your situation (number of units, age of the structure, etc.). Just reading through a couple will give you a sense of what they do, and what they don't do. If there's already an association in place for a condo you're thinking of buying, definitely ask for the condo docs to read through them before making an offer.

I nearly bought two condos in Boston/Camb in the late 90s. One was a triple-decker where I'd been renting for years and knew the other owners. Another was a 2-family where I would be the first one in, as the other unit hadn't yet been sold. Neither of those worked out in the end (and not because of any issues with the condo associations), but I did read the condo docs as part of the process. In neither case did I feel like I'd be taken advantage of. The documents seemed clear and thorough, they'd been reviewed by a lawyer, and I trusted the people I'd be sharing ownership with.

As I read your questions, essentially they boil down to: how to I trust in and negotiate my membership in a small, still-forming community that has both common and individual goals? The legality of condo docs goes a long way toward answering that, but building good relationships with your neighbors will be what lets you sleep at night.
posted by cocoagirl at 8:03 PM on May 15, 2007

My condo association consists of reps from 8 units. The Board is 3 of us (President, Treasurer, Secretary). My take on your concerns:

1) We do the managing. We clean ourselves, do the gardens, grounds, etc. It's rather informal and we could have a better system b/c there are, of course, people who don't pitch in, but all in all it works OK as there's not much upkeep generally w/a small building.

2) They live next to you, not much chance of absconding. Also, not much to abscond with.

3) This can happen with any HOA. Just because you're a big one doesn't mean you'll have reserves. After I moved in I was hit with a bill of 11K for a repair that began before I moved in. Completely sucks, but that's the way it goes. (The entire south wall of our building had to be fixed, so there was just no way any reserves could have covered a bill of like 300k).

4) If it's a legit repair, there won't be a fight. If it's cosmetic, just prepared to fight about it or give it up. Luck of the draw.

5) Be a big person. The petty bullshit politics here are completely annoying and stupid, but I just deal with it - it's where I want to live and fuck the idiots I happen to have to share a building with. I'm very nice; I can usually deflect anything and make it OK.

(I would KILL to be able to buy a condo in Cambridge - you aqre very lucky!!)
posted by tristeza at 8:17 PM on May 15, 2007

-- Wanting to make a repair/renovation to a common area and the other homeowners don't agree.

This is a real fear. I subleased a condo (in California) from the owner (the only one of four) who refused to make repairs and therefore THE CHIMNEY HAD DETACHED FROM THE HOUSE by about 5 degrees and ROOF SHINGLES WASHED OFF WHEN IT RAINED. Hopefully she was an extreme example. Best of luck -- there must be some success stories out there.
posted by salvia at 9:26 PM on May 15, 2007

Congragulations on your new "position". I also was elected President of a small condo association and faced many of the issues that you describe.

I would offer the following advice. You should first, recognize that your association is not simply a group of neighbors getting together to make decisions about your condos in a social setting. Rather, it is a legal entity that is guided by the by-laws and other governing rules and regulations. Failure to meet any of these obligations has serious implications, as lawsuits are not uncommon in condo associations, particularly if poorly run or neglected.

When you accepted the President position you took on the leadership responsibility for a company. As such, you will operate in an environment with unique business, legal, and social aspects. Unfortunately, many people that come to this position have limited business experience in these matters and they try to lead as they would manage their personal affairs. This is a big mistake!

Located at www.condopresident.com, you will find a suggested list of all the things that you shuld do to properly "kick-off" your association and fulfill your role as president during the critical first year. Besides telling you what to do, it also gives you a suggested timeframe of when to do it.

I hope it helps.
posted by Joe K at 5:52 AM on January 5, 2008