Category Archives: Property Management

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!

Movers Damage Condo Elevator; Tenant Being Held Responsible!

H.R. from Fairfield county writes:

Dear Mister Condo,

Hi! I rent a condo in a 3-floor building. I bought furniture and the delivery guys used the elevator and damaged a little bit inside of elevator. The manager made me go after them to pay to fix it, then they paid like $5000 but when somebody came to fix to change the panel on the wall said the panel are part of the whole wall and need change wall recalibrate elevator and the manager call me again asked me $13000 more to fix it or go after them again. All this start happened before my landlord lost the house with the bank so the manager sent him statements of elevator fees before now and somebody told me if he lost the house that problem is of the bank, the bank takes the condo with all debts? But now the board put that amount under my name. I am the tenant. And I told the condo manager that the rules said the landlord is responsible for any damage of the tenants and visitors of the tenants and she told me that rules change because of state but this happened a year ago when she recognized her condo rules. Help me please if she can make pay even the house is bank owner now is in process of foreclosure.

Mister Condo replies:

H.R., I am sorry for your problems and I am sorry I couldn’t get to your question sooner than now. I expect this problem to be resolved by now but, needless to say, since I am not an attorney, I offer no legal advice or remedies in this column. The association is going to go offer you, your landlord, the moving company, even the new bank holding the mortgage in an attempt to collect the money needed to repair the damaged elevator. It is hard to imagine a moving company doing so much damage to an elevator but that is a matter for the courts once the lawsuits get under way. Your question to me is whether or not you can be found responsible. My answer is that you caused the situation that lead to the damage and that may be enough to hold your partially responsible. My advice would be for you to hire an attorney if you are named in a lawsuit so that you can best protect your legal interests. The party with the most responsibility is the moving company, who it looks like has already paid $5000 ($5000!) for the damage they were initially accused of causing. They may be on the hook for the rest of the cost as well but that doesn’t mean you won’t be named if a lawsuit ensues if they refuse to pay. All the best!

Condo President Refuses to Relinquish Association Checkbook

T.C. from New Haven County writes:

Dear Mister Condo,

We recently changed management companies because they violated CT laws. Our President dragged his foot for 4 months before receiving a letter from the state ordering us to change companies. He was given the check book until we found a company. We found a company and he refuses to turn over the check book. Is this legal?

Mister Condo replies:

T.C., I am not an attorney and offer no legal opinions here. If you are asking me what I think of the President holding on to the checkbook and refusing to turn it over to the management company, I would say that is not a very friendly gesture and not stepping off on the right foot with the new management company. Is it criminal? Not in my book but it isn’t very sportsmanlike either. The great news is that your Board President can be voted out of office at the next Annual Meeting. Why don’t you and a group of like-minded unit owners volunteer to serve on the Board? That way, after you are elected, you can determine who will hold the various offices of the Board. If, on the other hand, the Board President has held the checkbook because there is evidence of missing money or such in there, and he has done something criminal, it is time to call the police. Stealing from the association is a crime. Work with your new management company to see what, if any, wrongdoing has occurred. If there is no harm, there is no foul. Either way, it sounds like it is time for a Board President who will act in the best interest of the association. Good luck!

Condo Management Company Charging Statement fee to Unit Owners

M.N. from New Haven County writes:

Dear Mister Condo,

My condo association recently hired a new management company. For the first time in history I was late on a monthly HOA fee and was charged a late fee of $15 and a statement fee of $5. The management company nicely waived the late fee since my check crossed in the mail but refused to waive the statement fee. I told them I want to opt-out of paper statements and they told me they only mail statements. Is it lawful to charge me $5.00 per statement?

Mister Condo replies:

M.N, yes, it is lawful for them to charge you a statement fee. The Board hired the new management company and should have been made aware of the fees and practices of the firm. The late fee was waived but that would have gone to the association’s coiffeurs. The statement fee goes directly to the management company and is a cost of doing business with them that your Board agreed to. If you are unhappy, you need to complain to the Board and ask them to either renegotiate with the management company to have the statement fee removed (unlikely) or find a management company that doesn’t charge a statement fee when their contract comes up for renewal. Or you could just pay the $5.00 statement fee and realize that it is part of how this management company collects its revenues from your association. All the best!

Has the Property Management Company Breached Their Co-op Contract?

A.S. from Fairfield County writes:

Dear Mister Condo,

I moved into a co-op recently. The board hired a new management company. After being unsatisfied with the property manager in place (3 months) the management company suggested we take the receptionist with limited skills and no license/certification as the new property manager. The board agreed for some insane reason and this girl has made it her mission to drive off all of our contractors and service providers to bring in the people the management company uses. There is talk of kickbacks. They have done this on other properties. Every memo, directive, repair or task this girl executes is wrong, mismanaged and just turns out badly. She has offended and outraged a dozen usually nice normal shareholders with her behavior, demands, and stop work orders. She is also the management company owner’s new girlfriend and he obviously wants her on some property. Can she act as property manager with only 1 ten-hour online class and zero experience in construction, property management, facilities, etc.? The contract between the co-op and the management company states we have a property manager, a receptionist and an Acct Exec. They are in default of their contract, correct? Please let us know.

Mister Condo replies:

A.S., you have made a lot of accusations here and, if true, are certainly worth contacting the association’s attorney to discuss. Breaking a management company contract for an association of your size is no simple matter. Just because you claim the management company is in default does not mean that they are. You would need to be prepared to prove it, very likely in court, as the management company would be likely to sue for breaking of the contract. My best advice to you is to speak with the association attorney. As for the Board’s “insane reason” to agree with the management’s company proposal to use a secretary as the property manager, it is time to call them to task for making such a decision. The Board is comprised of elected members. They can be recalled or voted out of office at the next election cycle. People that use “insane reasoning” have no business representing the financial interests of co-op owners. This is very real money of the co-op owners they are spending and protecting. They need to behave like the Board of any business and make decisions that are in the best interest of all shareholders. It would appear to me that they have shown exceptionally poor judgment in this matter. Of course, that also means you need to be ready with a slate of new volunteers to serve on the Board. Without that, this Board may continue to serve the association poorly. In that case, putting the blame on the management company is only half correct. Good luck!