May 2024
One management company agreed to work with a community afraid to deal with their predicament.
The community was nearly out of money. Modernizing elevators was expected to cost $1 million. Leaking windows damaging units could be even more expensive. The community operated based on fear of paying more money rather than doing what was necessary to keep their home in good condition. This fear prevented condo fees from rising to cover the cost of necessary repairs.
They failed to accept an earlier proposal from the management company, preferring to work with one that charged less. Things didn’t work out. Little progress had been made at addressing problems. Now, the management proposal required the board to agree to certain terms as part of any agreement.
- Be prepared to make difficult decisions and stand behind them regardless of opposition.
- Publicly and unconditionally support the management company when others blame them for substantial increases in assessments, special assessments and loans.
- Be prepared to pay the management company for the work necessary to turn things around. There was a fixed management fee plus a possible hourly or percentage of project costs.
The management company was transparent in the challenges to be faced. Difficult as these terms are, there is no other option for a community wanting to turn around a bad and worsening situation.
A condominium management company or condominium manager does not make decisions. The best they can do is facilitate actions based on board decisions. Management can only succeed at fixing problems and educating owners when supported by the condo board.
Turning around a struggling community takes considerable work and a dedicated condo board. Finding a good management company capable of the task is more important than going with the cheapest option.
