Well-Run Condo Corporations

February 2019

Well-run condo corporations are easy to identify.

Maintenance

Common areas are well maintained.  Peeling paint, poor landscaping, worn carpets and furniture, and lights requiring replacement are signs of a condo corporation avoiding normal maintenance.  This may make financials look good at the present while costing everyone more in the longer term.

Board Meetings

Board meetings take place approximately once per month or more frequently.  Boards that meet less than once a month may be ignoring their duties, choosing to work in secret or prefer to work informally.  Meeting minutes are available for all to review and provide insight to how a board chooses to operate.

Financial and Revenue Stability

Financial stability is evident on review of accounts and financials.  Both the operations and reserve fund accounts should be reviewed.  Look at major expenditures and how they have changed over time.  Reserve accounts require substantial amounts of money to pay for major future expenditures.  A reserve fund with less than annual condo corporation revenues, except for new buildings, should be questioned.

Indicators of revenue stability include number of owners delinquent in paying their fees, past special assessments and rate of increase in condo fees.

Communications

Communications should be regular and multifaceted.  How are owners and residents being kept informed?  There should be some combination of meetings, newsletters, notices and electronic communications.