SO WHAT'S
WRONG WITH CONDOS? Let’s Look at The Board of Directors
December 16, 2008
Charles HanesWhen each condo is completed and
occupancy has occurred a “turn over meeting” is experienced, where a Board
of Directors is elected by the condo owners (shareholders) to take care of running the
condo. The Board works with a professional Property Management company that actually runs
the building (hires/oversees security, collection of condominium fees, invests reserve
funds, and generally runs the condo developments after the hand over meeting).
Becoming a Board member is the most thankless volunteer job that I know of but it is one
that is very important to every owner in the building! The election of a Board
of Directors is a major thing that most owners disregard totally. Most owners don’t
attend the turn over meeting (there must be a “quorum” or minimum number of
owners in attendance to complete the turnover and pass bylaws etc.).
If you are going to make the size of investment required to live in and own a condo, then
sitting on the board is a very good way to insure your investment as you will know
absolutely everything that is going on with respect to your condo/investment.
I have a great deal of respect for and appreciation for those individuals who give of
their own time to sit as a member of the Board of Directors of their condo. That said, not
always do the best of intentions deliver the best of results.
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As an owner of a
condo you, in essence, become a shareholder in a corporation and common sense should tell
you that paying attention to your investments is always a good idea. The way that you do
this is by attending board meetings, most importantly the “Turn Over Meeting”,
having read the announcement that contained the resumes of those volunteering for the
board and voting to insure the most competent board as is possible.
Look for someone with previous board experience, accounting experience and/or law.
Balancing these resources with other caring individuals who have expressed their interests
in sitting on the board is the best that any owner can do in their efforts to effectively
run the company/condo corporation/building.
A good board of directors leads to a good building. It hires a good property manager to
manage the day to day affairs of the building.Be
sure to tune in each week to read this Series:
1.
“What’s Wrong With Condos . . . . It all starts with the developer”.
2. “What’s Wrong
With Condos . . . . Board of Directors”.
3. “What’s Wrong
With Condos . . . . Property Manager”.
4. “What’s Wrong
With Condos . . . . Tenants”.
5. “What’s Wrong
With Condos . . . . Speculator/Investors”.
6. “What’s Wrong With Condos . . . . End User Owners”.
That’s it for now. I’m Charles Hanes |
