Should you be on your condo's Board of Directors?

If you own a condo or are considering buying a condo, one option available to you is to become involved in the business of condo management.  Every condominium must have a Board of Directors to run the not-for-profit condominium corporation.

The next time your condominium corporation advertises a vacancy, you should ask yourself, "Should I get involved and join the Board of Directors for my condo?"

The Board has many duties, including but not limited to:

  • Developing, maintaining and enforcing the policies of the corporation through bylaws, rules and regulations
  • Managing the finances of the corporation
  • Maintaining the property's exterior and interior
  • Preserving the investment of the condo's various owners

Each month, each condo owner pays their condo or association fees.  These are used to maintain the property, including security, cleaning, elevator maintenance, landscaping, snow removal, underground parking, pool maintenance, and more.  This money also has to cover items such as insurance for the exterior of the building and the common elements or areas, utility charges for the common elements or areas. 

The Board must arrange for reserve fund studies to be done every few years.  These studies identify any areas of the building that will require maintenance on a larger scale, such as parging foundation or replacing the roof.  At least 10% of the association fees are kept for these expenses.

Occassionally, these large ticket items require more money than is kept in the 10% reserve fund account.  In these instances, a special levy is declared by the Board.

As you can see, joining the Board of Directors is a big responsibility.  There are pros and cons.  You get to have a hand in the decisions made in the building wher eyou are an owner, however, the decisions you make may not always be popular with everyone.  Ultimately, you need to decide if you want to have a say in what happens in your condo, or do you prefer to leave that to someone else?

Posted Friday, January 01, 2010 by Condo Hotline
Tags: condo board, board of directors, condo decisions