Category Archives: Property Management

No Board at this Iowa Condo!

M.T. from Iowa writes:

Dear Mister Condo,

I own a condo in a small HOA with about 18 units. We currently have a non-existent property manager/bookkeeper that has been in charge of running things since the board disbanded prior to my ownership. This manager has not done any repairs other than basic yard work and snow removal. My roof started leaking and all my requests for repairs have gone unanswered. My front deck is also dilapidated and in need of replacement and she just hired a handy man to come put more screws into the rotting wood. She is not an owner and, in fact, lives about a half hour away in another state. Majority of the owners agree she has been neglecting her responsibilities as a property manager and needs to go. How do we go about that if a board doesn’t exist? Many owners have asked to see the financial state of the association but she refuses and ignores our requests. Some owners are unable to sell due to the fact that they cannot prove that the association is in the black financially. How do we get rid of her put the association back into the hands of the owners? FYI, these condos were built in the mid-80s and most of our roofs and decks are in need of replacing.

Mister Condo replies:

M.T., I am sorry for your situation. Let me get this straight. You and the owners of the other 17 units have been living in a condo association for several years with no one realizing that there needs to be a Board to govern the association?!? You have a right to be upset with the Property Manager but what is she supposed to do? Technically, she has no supervision or guidance from the association. Unlike you and the other owners, she has no ownership interest in your association. I assume she is paying herself for her work out of the association’s common funds, collected by her, and used to pay for the scant services that are being provided. I would say you are fortunate to have her stick around without any direction or supervision from the non-existent Board. I hope she is honest and hasn’t robbed the place blind. The Board is the check and balance system to keep an eye on the association-owned assets (in this case, the money!). You and the other owners need to read your condo documents and determine who will volunteer to serve on the Board as soon as possible. Then, and only then, will you have an opportunity to address your immediate problems but also the myriad of problems created by not having a Board in place. Good luck!

Replaced Property Management Company Refuses to Surrender HOA Records to the Board

W.D. from outside of Connecticut writes:

Dear Mister Condo,

The replaced property management refuses to surrender HOA records to the HOA board. Is that legal?

Mister Condo replies:

W.D., nobody likes to lose their job, including property management companies. While it is bad form to delay the turnover of association records to either the Board or the new property management company I have to say that I hear it happens all the time. Take a look at the former property management company’s contract. Does it say exactly what happens upon termination? Many contracts say the records have to be returned but they fail to say how soon. I have seen phrases such as “within a reasonable amount of time” and “at their earliest convenience”, which indicates it should happen shortly after termination but has no teeth when it comes to setting exact dates. It is not uncommon for an association to hire an attorney in this situation to pursue the management company. Usually, the threat of a lawsuit is enough to speed up the process. Other than that, you are at the mercy of the former property management company. Hope that help. Good luck!

Community Association Management Contract Requirement

T.W. from outside of Connecticut writes:

Dear Mister Condo,

Does a manager of a very large condo building need a contract, as to her responsibility, salary etc.? Does the manager need a contract of duties and responsibilities?

Mister Condo replies:

T.W., managers are hired by associations to conduct the day-to-day business of the association, which include a myriad of tasks and responsibilities, there is usually a contract between the association and the manager or the management company that details the work and compensation for the work. If an association hires a manager without such an agreement, it really isn’t practicing good business practices, in my opinion. That wouldn’t be the manager’s fault. That would be the fault of the association. I am not aware of any legal requirement for such a contract but I can’t imagine hiring any person or company without such a document. All the best!

Board Member Involvement During Condo Association Developer Transition

K.W. from New Haven County writes:

Dear Mister Condo,

The Builder still has control over the association until which time a certain number of units are taken ownership of. However, it was allowed for one homeowner to have a seat on the BOD which consists of 4 in total at this time. My question is just how involved this HO BOD should be involved with our vendors, vendor RFQs and managing the community when we have hired and pay a management company to do this. Thank you!

Mister Condo replies:

K.W., developer transition periods are a very special time in the lifeline of a condo or community association. Board Members may have a representative seat on the Board but until the association is released from developer control they typically have very little to say in the day-to-day running of the association. However, neither does the management company unless the developer has empowered them to make those decisions. Involving a volunteer Board Member in the decision-making process is good politics and may even provide this Board Member a front row seat in seeing how the decisions are made. His or her involvement would be at the discretion of the developer. All the best!

Conflicts of Interest Arise as Condo Board Member is Hired to Serve as Property Manager

B.B. from Fairfield County writes:

Dear Mister Condo,

Our condo manager is also a resident in our association. Is he permitted to serve on the condo board? Our condo board allows him to sit at their table and speak freely at the board meetings while making other residents wait until the end to speak. Aside from the obvious conflicts of interests, are there any laws/rules about this sort of thing?

Mister Condo replies:

B.B., I am not aware of any laws or rules that would prohibit a resident of your association from serving as the condo manager. Obviously, any unit owner can serve on the Board if elected. Unless your governing documents forbid it, there is no reason a unit owner could not be elected to the Board and also serve as the condo manager. Your point about the conflicts of interest is valid and any Board that decides to hire a unit owner, and especially a Board member, to serve as the Property Manager has to be extremely aware of the possible conflict of interest. I have written about this extensively in this website. You can read the previously addressed issues here: http://askmistercondo.com/?s=conflict+of+interest. In a world where it is not necessary to hire unit owners to work for the association, I contend that there are always better ways to find and hire a property manager that protects the association from these possible conflicts. That being said, I am now aware of any laws or rules that are being broken. All the best!

Licenses Required to Work at Connecticut Condo or HOA

S.D. from Hartford County writes:

Dear Mister Condo,

I work for a Property Management company that is based out of Texas. The property is owned by one company but managed by another. Its located here in CT. The property is split with both condo-owned units along with rented units. Our HOA side is managed by someone separate who holds their CAM license. My question is, what licenses do I need to have if any while working onsite at our CT property? I do show and rent units along with leasing. Thank you for any enlightenment on this situation.

Mister Condo replies:

S.D., unless you are actually managing a community association in Connecticut, I am unaware of your need for a Connecticut Community Association Manager license. The type of work you are actually doing while in the state would determine what license(s), if any, are required. It sounds like you are functioning as a real estate agent, which does require a license. If you are uncertain, you can check the state’s website at https://portal.ct.gov/DCP/Agency-Administration/Division-Home-Pages/Licenseswhere you can research the work you are doing against the state’s licensing requirements. Other than that, check with your employer. I’m sure they don’t want you doing any work on their behalf without the appropriate license that would make them vulnerable to being sued. All the best!

Condo Unit Owner Seeks Legal Recourse for Poorly Maintained Roof

D.N. from outside of Connecticut writes:

Dear Mister Condo,

After living in my condo unit for many years, the roof recently came off during a rainstorm. The Association’s master policy is paying for the property damage which means they will put the home back to the state it was sold to me. However, do I have any legal recourse against the property management company and the board for not maintaining the roof in good order in addition to what the insurance will cover. The roof was originally scheduled for replacement in August. My roof came off in July. The state of the roof of my unit as well as the other roofs in the building unit I am in was in very poor shape. It appeared as though the roof should have been replaced or maintained quite some time ago. I was wondering if I had any recourse against either or both parties for not maintaining the property at the level it should. I have always paid my condo fee in full and feel I deserve to have my property maintained.

Mister Condo replies:

D.N., poorly maintained condos are almost always the result of “deferred maintenance”, the polite term for not collecting enough common fees to make adequate Reserve Fund contributions over the years. I am sorry that you had a such a direct impact from such a poorly maintained roof and I am glad that you have had the benefit of insurance to help you rebuild. As for your ability to seek additional damages against the association, I am doubtful. That isn’t to say you couldn’t try but the reality is no real crime was committed here. The Board is democratically elected by the unit owners like yourself and has likely changed over many times in the years of neglect involved. The Property Management company does the bidding of the Board so they are not at fault. Who exactly would you sue? The association paid to replace your roof after it failed so they fulfilled their obligation as well. I am not an attorney and offer no legal advice here. My friendly advice is to be happy that you have been made whole by insurance and that no one was injured by the failed roof. You might ask the Board what steps they are taking to start saving for the next roof now that the current one is new. My guess is your common fees need to increase 20% or more to properly reserve for future repairs. As you can imagine, that won’t be popular with unit owners who are unlikely to want to pay more today for tomorrow’s repairs. Yet, that is the right solution. Good luck!

Poorly Maintained Condo Grounds Becoming a Swamp!

J.M. from Michigan writes:

Dear Mister Condo,

I live in a condo managed by a professional management company. The grass is not being cut and the property is turning into a swamp. What are my rights?

Mister Condo replies:

J.M., the management company works for the association, governed by the Board of Directors or Trustees. If the management company is underperforming, it is incumbent upon the Board to pressure them to perform properly or be fired. If your Board isn’t doing their job, it is time for a new Board. Have you been attending Board meetings to hear what is going on? Have you complained directly to the Board about the poor property maintenance? You need to be vocal to have your issues heard. This isn’t an issue of your rights, this is a simple issue of property maintenance being performed as outlined in your governance documents and the management company agreement with the Board. All the best!

Condo Property Manager Offends Unit Owner

P.J. from outside of Connecticut writes:

Dear Mister Condo,

If an owner contacts the PM regarding an issue and the PM’s response is that “I am a pain in the ass and a little prick” is there any formal rights I have to request his replacement with another agent from his Firm? Thank You!

Mister Condo replies:

P.J., I am most sorry to hear about such rude and unprofessional behavior from a Property Management professional or anyone for that matter. It reflects the general lack of civility that seems to be far too common in today’s society. As for “formal rights”, I don’t think you have any. The Property Manager is hired by the Board. You should most certainly complain to the Property Manager’s supervisor if he or she has one and you should complain in writing to the Board who can pressure the Property Manager to behave better or be replaced. But the reality is that you were insulted, not assaulted. Anyone who uses such terms when dealing with a client is saying far more about their own behavior and upbringing than yours. Take the high road, P.J.. Good luck!

Condo Owner Must Produce Common Fee Check Archive

A.B. from Hartford County writes:

Dear Mister Condo,

The association where I reside is on its third management company since I moved in back in 2009. The biggest issue with the last two management companies is their lack of proper financial records and management of the associations funds. Our current management company is in the process of doing an audit on each unit based on the files/paperwork they were able to gain access to from the previous management companies. I provided a reconciliation when the second management came on and since I keep good records, I was able to put together a reconciliation of my payments since. I received a letter from the new management company telling me I owe a balance on my account and that I need to provide back-up (check copies). I am able to submit a list of checks and their bank posting date, but the check copies are going to cost me money. (My bank, as well as many others no longer provide check copies with statements. And I have e-statements). Can they force me to provide check copies or is my list of checks and the bank posting dates sufficient? Is it fair for me to push back and have them pay the fee for the checks they are requesting? What are my rights? I know for a FACT I do not owe any back payments.

Mister Condo replies:

A.B., I am sorry that you find yourself on the receiving end of what must feel like financial incompetence by the previous management companies. The reality is that the banks do charge a very small fee for providing archives of checks but that is just a cost of doing business. I would rather pay the very few dollars it will cost you to reconcile your payment record with the association than find yourself having to defend a collection action by the association. The association has the right to ask for these records and you have the right to provide them or not. If you don’t, the association will very likely hit you with late fees and other collection expenses. You don’t want that so go ahead and work with your bank to provide the records the new management company seeks. And, by all means, keep copies of any checks they provide so you don’t find yourself doing this again should the association hire yet another management company in a year or two. Good luck!