Most condo board decisions are relatively easy. Options are presented and the best choice becomes obvious. More challenging are those gray areas where the right decision is far from clear. This is where disaster lurks.
Avoiding disaster or what should have been unnecessary costly expenditures involves avoiding three decision types.
Deferring maintenance, particularly to keep fees low, is never a good idea. Failing to perform routine maintenance is a recipe for larger future expenses and potential for ongoing problems. Short-term solutions never save money. They simply reduce current expenditures leaving the source of a problem unresolved and allowing it to get worse.
Awareness of building problems have a way of reaching the outside community thus impacting on property values.
Deferred maintenance is fully controllable by the board and should be avoided.
Most condo boards lack stability as individual directors come and go each year. Newer individuals, and boards, should become current on active projects, budget matters, plans and goals.
Most boards lack a process for educating new directors. This becomes apparent when a new board takes a different view to rules and enforcement. Problems arise when decisions are not applied evenly, consistently and without bias toward any individual or group of residents.
Inability to make a decision is the worst possible outcome. Rather than investing necessary time in research, discussion or debate it can be easier to delay or avoid decisions. Tabling matters for “future discussion” without resolution are an excuse to avoid making any decision.
Boards unable to make decisions repeatedly find similar issues on their agenda without resolution for months or years. As time passes frustrated vendors stop following up on bids they have submitted. Prices increase. Good contractors no longer want to work with your corporation or charge a premium to do so. Problems worsen, complaints increase and scope of work grows further adding to cost and inconvenience.
Good condo boards establish timelines for research then make decisions based on their best available information.