Self Managed Small (Micro) Condo Dynamics

Hi,

I just wanted feedback from small (2 units to 10 unit) condos that are self managed. I want to know your dynamics in your setup according to how you govern. Do you have an elected board? How do you reach decisions (voting or consensus) etc. Frequency of meetings. If you do vote is it proportional or not. How much conforming to the docs and laws that you do.

The dynamics of micro condos are so bizarre that I needed to touch base with others who are in the same boat.

My building
Self managed
3 units
No board
Meet infrequently and meeting based on topic.
Voting by unit.

This thread is for starting the conversation amongst the micro condos.

Thanks.

In the late 80s I bought a condo in a very small community. It was the developer's first go at these things and the city's first condominiums. On top of it, all of the owners in my community were first-time buyers. We didn't know what we were doing, and a lot of our actions were driven by that. What saved us was owning new, good-quality construction, and we buyers were responsible and wanted to do things right.

In addition, state law at the time was primitive compared to what it is today. People got themselves into trouble, and lessons were learned the hard way. State lawmakers got tired of listening to the tales of woe from their constituents and made changes.

And there was no internet back then. Learning what we needed to know was not as easy as it is today.

That said:

* Minutes? What minutes? Reserves? What reserves?

* We had a two-person board, and I was the secretary-treasurer. By definition, we had to operate by consensus. I also think that in a tiny community, that's the only way to go.

* Aside from the formal meeting turning over control to the owners, our meetings were as-needed and often spontaneous. I don't remember whether our bylaws required meetings on any particular schedule.

* We elected new board members when somebody wanted to step down. Given that nobody else wanted to serve, no one complained about the lack of formal elections. We had no idea about an annual meeting aside from a vague notion that it would be a good idea to get everybody together periodically and discuss what was going on. So we did. We met on decks and in basements.

* What we did right: accurate and complete financial records and some version of an "annual report".

I cringe when I look back at how little we knew. What I've learned since then:

* Tiny condo communities amplify everything, good and bad.

* Many states' laws provide exemptions from some requirements for condo communities below a certain size. Be sure to check yours.

* I strongly prefer operating by consensus in any case. But in a tiny community where everyone literally lives on top of each other, it's the smart way to go unless you have one guy who opposes everything on principle. In a larger community, that sort of person is a minor annoyance. In a two-unit condo (yes, they exist), it can be fatal.

* In a tiny community, I'd be tempted to give everyone a formal role. You're more likely to get cooperation when everyone has a stake in making things work. (Yes, even Mr. Opposes Everything if you can choose the role wisely.) And there's the pragmatic reason that one or two people shouldn't be doing all the heavy lifting while someone else sits back and enjoys the benefits of others' labor. This happens in every community association and can cause resentment, which is at least diluted in large associations.

* It's important to keep complete records of decisions and actions, even if they're not in formal minutes. You don't want to rely on people's memories.

* Financial records should be as accurate and complete as those in any other condo community. Condos are essentially shared ownership and expense, and money is a reliable source of conflict. If no one in the community has the necessary skills, that's one job I recommend hiring a professional for.

* Fortunately most records are now kept electronically, so you won't have to worry about boxes of paper in somebody's garage. It's also much easier to make electronic records available to everyone.

* The most easily-resolved disputes are the ones that don't happen in the first place. Consensus and transparency.

In any size condo there are two methods of voting. One vote per unit, regardless of unit size, being the most common. The secondary method is the votes are proportionately based on the unit size. Ones doc's should spell this out.