Common Challenges
As Condominium Associations continue to expand in the U.S., the need for Community Management volunteers and board members increases. Considering that most board members are strictly volunteers, the job itself can be rewarding yet extremely challenging at times. Like any business, the condo board of directors is organized with people of all backgrounds and philosophies. No board is alike and each one brings great value to their community. Without formal training, condo association boards can experience immense difficulty when trying to keep communities – especially those of a larger scale – organized. It’s the condominium board’s responsibility to either thrive or survive, and more importantly, it’s how they handle the challenge that makes the most difference.
Unintended Consequences
When condominium boards prolong problems, it can create a huge void in their community and board of directors. For instance, increases in complaints, miscommunication, financial issues, and even lawsuits are only the beginning of what can result if problems within the condo association are not resolved. In order for a community to thrive, volunteers and membership is crucial. No condominium association wants to be put in a situation where no one is willing to volunteer. As supporters of the condominium community, we feel it is important to acknowledge prevalent condo association issues, as well as provide effective ways to solve them. Listed below are 3 common condominium association problems that are steadily growing among mid-rise condominium associations.
- Maintaining property value
- Common areas
- Financial issues
1. Maintaining Property Value
As the housing market continues to fluctuate, condo associations often seek ways to keep up with the value of their community.
- Maintenance and repairs: In order for condominiums to keep their high value, associations must maintain a standard for common areas and amenities. In situations where communities do not have enough volunteers or maintenance, these standards can easily decline and lower the value of the community.
Although the past year has presented challenges in unique and unexpected ways, condo boards should continue to enforce the rules behind property maintenance and repairs, as outlined in the CC&Rs.
- By enforcing these rules, the HOA becomes an invaluable part of preserving the sustainability of the neighborhood.
- Try to engage the community and show the importance of maintenance to everyone.
- Create volunteer groups to help and share improvements regarding current actions with the condo owners.
2. Common Areas
Due to the occurrence of COVID-19, many condo associations have had to update their rules and regulations regarding common areas. Unfortunately, if members do not stay up-to-date with their community news feed, an increase of complaints from other residents can occur and cause more stress on the condominium board.
- Pools: Due to COVID-19, many community pools and common area amenities have closed or had their rules changed due to the safety of their residents. At the beginning of the warmer season, condominiums needed to implement new rules for the reopening of common areas, for example: those requesting scheduling to use the pool would need their children to be monitored and social distance to be respected.
- Recreational centers: As the economy continues to open back up, recreational centers will continue to enforce strict rules on their members when it comes to proper cleaning protocols. Residents that do not obey these rules can create major health hazards for the center and their members.
Consistently communicate in regard to any common area changes or updates. Make clear the reasons for the new rules and reinforce that the changes are to preserve the health of all. Provide a clear process for all residents when it comes to reserving an amenity.
- Manage reservations: It is beneficial for condominiums to have complete acknowledgement of common areas, complete reservations, and cancellations. Technologies can help to facilitate the use of common areas and amenities without causing any inconvenience, such as agglomerations or duplicate reservations.
- Special reservations: Have an awareness of those that may be more health conscious, especially when it comes to the elderly. As an alternative solution, condominium fitness centers could offer special workout times for senior citizens that may be more susceptible to contracting COVID-19.
3. Financial Issues
Oftentimes a condo association board can fear the opinions of their community members when it comes to financials. It is quite common for some boards to receive complaints on how dues are utilized.
- Raising dues: Condo associations can increase fees on an annual basis to meet their budget. Due to the financial strain that some families have recently experienced, many members have sought the need for financial help and have experienced issues with paying their association dues.
It is helpful to provide all HOA board and members with proper communication and transparency regarding important documents.
- Communication: As the Condominium board of directors, it is important to engage open communication on the utilization of condo association dues.
- Transparency: Work to improve financial transparency within your community by encouraging attendance to board meetings. It is essential to keep financial documentation up-to-date. This also includes compiling and distributing an annual financial report which should be audited and reviewed regularly.
- Reports: Regular financial reports and audits should be maintained and available upon request, if not published annually for full transparency.
- Review the budget: If your community is facing higher delinquency due to a crisis, reviewing the budget to check where to cut costs can help avoid the need to raise dues.
All in all, it can be constructive to address some of the common headaches that arise from community management so that we are prepared to implement solutions. Every community is unique and comes with their own challenges, with a shared goal of creating a seamless living experience for all residents.
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