Most condominiums have a homeowner's association, abbreviated HOA, which all condo owners in the complex are required to join. The association is managed by a board of directors whose members are elected democratically. While each board operates differently, they usually have a president, vice president, secretary, treasurer, and members. Some board members share all of these responsibilities, while large boards have even more positions.
The board creates and handle the complex Covenants, Conditions & Restrictions (CC&R), a document that dictates homeowner actions. The board is also responsible for all aspects of condo management. However, most association do not manage condos themselves, they usually hire property management companies to perform day-to-day operations.
The board of directors sets policies and regulations, while the management company enforces them. A condo management company is responsible for maintaining the property and ensuring that it is up to environmental standards. They communicate with homeowners about CC&R, handle violations, manage the condo finances, handle questions and concerns from homeowners, obtain and manage the condo insurance policy, prepare the reports, hire the security company, etc. They could have their own employees or give contracts to smaller specialized companies, depending on the extent of the management company.
These are the typical expenses of a condo complex:
Management Fee, Meeting costs, Public Accountant Fee, Legal fees, Professional fees, Bank fees, Insurance and liability, Cleaning Supplies and Service, Maintenance Supplies and Service, Guard Service, Pool Products and Maintenance, Elevator Service, Landscaping Service, Utilities for common areas, Phone line for guards/security, Future Projects, Contingency Fund.
Every year, usually at a similar date, there’s an annual meeting where owners vote. They re-elect their board members and renew the property management company contract. After the meeting, all owners receive the minutes of the meeting, which resume what has been discussed, who was present and who voted with the results.
The board of directors should carefully monitor and assess the actions of management companies by requiring the company to prepare regular reports that detail accomplished tasks and financial information.
Isabelle Emond, Owner/Broker