Tag 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!

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!

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!

Condo Electronic Key Deactivated by Property Manager

O.P. from outside of Connecticut writes:

Dear Mister Condo,

The property manager disconnected my electronic key because I authorized a person HE DOESNT LIKE IT to enter to my property as desired.

Mister Condo replies:

O.P., I am sorry that your electronic key privileges were revoked. Without knowing the rules of how your electronic keys are allowed to be used, I am not certain if sharing it with anyone is allowed, let alone a person disliked by the Property Manager. I doubt the Property Manager can simply disable a key without having to report such activity to the Board, to whom the Property Manager must answer. If you feel your key was deactivated inappropriately, complain to the Board so they can take action. On the other hand, if you have violated the rules of the electronic key use by sharing the code with someone who you shouldn’t have shared it with, I would advise you not to do it again. I assume the reason there are electronic keys in the first place is to provide building security. They are convenient to be sure but must be protected if they are to be useful as a security measure. All the best!

Property Manager Purchases Condo in Managed Association

B.S. from Florida writes:

Dear Mister Condo,

Wondering if you see any conflicts for a Florida CAM to purchase a unit to reside in and still remain as the onsite property manager. The Board sees no conflict of interest but some owners are questioning if there is a conflict, as the onsite manager may have some inside information that other owners may not be privy too. Your thoughts on if you think there are any conflicts?

Mister Condo replies:

B.S., I do not see any conflict of interest but I do appreciate the concern of some owners for the potential for a conflict of interest although as a unit owner who would be affected directly by insider information, I would also think the conflict of interest might even go in the direction of the association. What unit owner wants to see his/her own association make financial mistakes or poor decisions? Not only does the property manager need to worry about his/her job performance but also has a personal interest in the success of the association. On the flip side, if the property manager’s unit gets preferential treatment, unit owners would be right to call foul. My advice would be to allow the property manager the ownership of the unit and to keep a vigilant eye on how the unit is treated. The Board keeps an eye on the Property Manager by default. They might need to make sure there is nothing unusual going on but I really doubt the manager would risk his/her job over abusing their power to give themselves preferential treatment. Good luck!

Condo Sheetrock Project Creates Dusty Nightmare for Residents

J.T. from outside of Connecticut writes:

Dear Mister Condo,

I live in a 65-unit owned condo. Our manager refuses to clean the hardwood laminate flooring until the plumbing project is complete. It is covered in sheetrock dust and tracking everywhere in the common areas. What can I do?

Mister Condo replies:

J.T., there isn’t too much you can do as a resident other than complain to the Board to apply pressure to the Property Manager and/or the contractor doing the work. Sheetrock projects generally create dust and a better plan for the project would have included dust control measures. That component was either overlooked or the Board decided to take a cheaper route and not include it. The end result is the messy situation you have right now. Not all projects are as simple as hiring a contractor to do the work. Sometimes you need to think about the side effects on residents. This is a great example of how that lack of foresight lead to a bad living experience for residents. The good news is that “this, too, shall pass” and that the project is likely already over and the repaired area looks great. Remind the Board that future projects should include a plan for dust remediation, even if it costs a little extra. All the best!