How to run a condo board

[newcondo]

What is the name of your state? Maryland
Here is my situation: I am buying a brand new condo in a development that is in the process of being built. The developer will turn the board over to the owners once the development process is done. I have purchased in the first phase and i am really taking an interest and pride in joining (if not running) the board. What if any advice do you all have on running, operation and the start of a strong and competent condo board? I really want this to be a strong investment and also a way to give back to the community and hopes to help redevelop an area! is there any reading material that you would recommend rules to enforce and strategies on operation or running for office? I know the post was a bit long but any help would be appreciated thanks in advance. ps. what advantages/disadvantages do you know of from being apart of a condo assoc?

 

[newcondo]

Is there any suggested literature or reading material one would recommend? I am sure it is stuff online so any websites would help also... but anything would help! someone was telling me of a software/program that does the numbers and accounting for you?

 

[Paddy Reagan]

Several books (and magazines) are available with advice for condo living and management. Use the Amazon search engine to find them and read the reviews to determine what seems best for you. Most of these publications are generic and include very little information about individual state requirements.

My advice would be to sit down with the CC&Rs for your community and examine every facet of information included there. As a second step, read the laws in your state that govern condominium establishment and operation. You can follow this link to these statutes:

http://www.sos.state.md.us/Registrations/condoindex.htm

As you proceed with this reading you'll recognize quickly that management and operation of your condominium is closely related to the business strategies of the developer. For example, if the CC&Rs permit leasing with few controls it's because the developer believed this would make the units easier to sell. These decisions will affect your community long after turnover of the board to the owners (typically, when 90% of the units have been sold.)

You'll also find that many decisions regarding management and operations have been made by the developer. Accounting functions, bank accounts, annual budgets, and collections should be in place long before the turnover. Contracts for elevator and pool maintenance, lawn care, etc., will also established.

It appears that you will be one of the first residents in place when the project is completed. I suggest you learn all you can about condos in general and your building specifically. Then, as the buildout is completed and occupancy begins, be observant. Be sure that the developer keeps the promises made in the prospectus and that the CC&Rs are followed.

It's not my intention here to demean developers. Most are honest and reliable. But, as condo projects near completion, strange things are known to happen. Some examples in my recent experience: Storage rooms designed for use by owners were sold as $25,000 "cabanas"; visitor parking spaces were sold in bulk to an outside company; and thousands of dollars in converter reserves were spent to pay operating expenses in the first year of developer control.

Good reading and good luck!