I’m sort of thinking “out loud” w/ this question, but your thoughts are appreciated.
My partner and I are close to owning 50% of a small condo complex - low income area. We would like to own all of the units in the future, which is a possibility, but there are a few existing owners who might make that difficult.
There is existing management in place who does an adequate job - most of the complex’s problems stem from less-than-attentive or inexperienced unit owners. The management’s fee is ~10% of the yearly condo fees. He doesn’t deal w/ any of the rental/tenant relations stuff.
Assuming we owned 50%+ of the units, but not the whole complex…Could/should we (as the “board” of owners) replace the existing management w/ ourselves? Would it be legal/appropriate to take payment for doing the management? If not, I guess the only real benefit (for a substantial amount of work) would be more efficient management, which would ensure that our condo fees weren’t going to waste and that the reserve account was being sufficiently funded?
Any thoughts on my rambling stream of consciousness would be greatly appreciated!
When I had my property management business, I talked with a lot of condo associations. The association can vote and do what they want. If you only own 50% or and only half of the association, you would only have to get a few others to agree.
Hiring or firing the management company is a decision usually reserved to the board of directors. I have never seen the decision on hiring a management company to run the association put to the membership for a vote. Not to say that is the case for your association, I have just never seen it happen in all the associations I have belonged to.
You can always petition the board to change association management companies or to self-manage the association. About the only way to really influence the board’s decision is to get yourself elected to the association board of directors.
here’s my next question.
There currently isn’t an active board of directors. I don’t think many/any of the current owners want to be bothered. Currently we own ~45% of the units; couldn’t we put out a call for the “creation” of a board?
What if no one else is interested? Can one owner act as “the board”?
Regardless, we would have a lot of say over who gets “voted” onto this board, b/c of our % of ownership - correct?
Thanks again for any thoughts - I know I need to dive into the condo
docs more carefully and figure out some of the specific details.
And it’s not that I’m necessarily trying to accomplish something very specific right now. It’s just that we recently purchased these units, would like to purchase more (to at least give us 50%+), and would like to know our options or strategies for maximizing profit and efficient management for the property.
Is there an association management company doing something?
If so, then tell the management company that you want to place yourself on the ballot for the next election. Get on the board, then make positive changes for the association. If your bylaws allow, call for a special election to replace ineffective/inactive board members.
As other owner see positive changes taking place, they may become more enthusiastic about joining your efforts.