Board Buying Condominium Governance Property Management

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!

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