Posted:
What Cathy said. From your post count, youâre new to this website (Welcome!) and there are a lot of conversations, old and new, on a variety of association issues. In nearly all of them, I find several takeaways over and other, which may help with your community. Here are just a few, with one person's comments:
1. READ YOUR DOCUMENTS! Thatâs a key to Cathyâs first comment â you should know what the board is supposed to do, what the association is responsible for vs. homeowners, rules regarding the use of the common areas (e.g. parking lots) and much more. How can you assume the board is incompetent if you donât even know how your community is supposed to be run? Do you even know what the board is empowered to do or what homeowner responsibilities are? You should find a lot of that information in your documents.
2. The documents will tell what the association is responsible for vs. individual homeowenrs, but remember, you and your neighbors co-own the communityâs common areas, like parking lots, and apparently, the patio walls. After you see what the associationâs responsible for, ask if it has master insurance covering those areas. Check that against your insurance coverage, which should be landlord-tenant, not a regular homeowner's insurance policy. If you don't get the right policy and something happens inside your unit, the insurance company might not pay because the unit isn't being used in the way it was intended. That's also why you should insist your tenant get renter's insurance and periodically check that it's still current - if your tenant does something that damages your unit, you'll have a way to file a claim. You can also check that policy against your landlord policy and the master association policy to ensure there's no duplication of coverage.
PS: the correct word is assessments, not rent. Assessments are paid to cover the associationâs bills for maintaining its assets, and you're legally obligated to pay them as a member of the association. Sometimes people try with withhold assessments because they're unhappy with the way the association's being run - and that always backfires, so don't try it.
3. You also said the assessments are increasing and you think itâs because âwe all have to pay for a car that got damaged with my broken wall.â Donât assume anything about association finances â itâs YOUR responsibility to know what assessments are being spent on and why they have to be increased (much like your expenses you usually pass on to whoeverâs renting your unit.) This isnât a block club; this is a non-profit organization that should be run like a business.
When was the last time you looked at the annual budget and monthly income/expense statements? Does the community have a reserve fund? When was the last reserve study done? Donât know what Iâm talking about? Use the search key on this website to look up old conversations (and a few recent ones) to get a nice overview. Bring your questions back to this conversation â better yet, go to a board meeting and ask the president and everyone else on that board.
4. Regarding owner-landlords, I have to say I personally take a dim view of them because they rarely, if ever, get involved in the community, donât educate their tenants on community rules and yell the loudest about assessment increases because it cuts into their profits. Then, they act shocked, shocked, when stuff happens. That said, I did meet several responsible owner-landlords during the 10 years I was on the board, so I hope you will be one of them.
That starts with making regular visits to your home. Donât assume your tenant will tell you everything â I find it quite strange this one didnât tell you about the wall â at some point, he/she should have seen it. Time for you two to have a chat. Remember, he/she doesnât own the unit anyway, so when shit goes down, he/she can simply leave at the end of the lease, so why should the tenant care if you make money?
By the way, itâs not the associationâs job to ensure you make money either â you made a business decision to rent out a home in a homeowner association, so if you feel the leadership is lacking (and it probably is in several spots), maybe you can volunteer to do certain tasks. I know they said no to you monitoring the rentals, but as you educate yourself on whatâs going on in the community, you might find another way you can help. Tell the board what your skill set is and what they need and build from there. If they still say no, keep yourself informed, attend some meetings and introduce yourself to your neighbors (thatâs what they are, even if you donât live there). That could open other opportunities to serve.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius