Condo owners have many things they ought to consider, both as tenants and as potential sellers. Here is a list of some key factors.
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Today, I’d like to talk to you about the things you should think about as a condo owner, both when you’re living there, and when you’re considering selling.
First would be the monthly assessments. These go toward common utilities, maintenance, insurance, door staff, and what are called reserves. In every association, there is an operating account—which is essentially a checking account that pays monthly bills—and a reserve account, for money put aside for future expenses.
Second, when lenders are looking to qualify a new buyer, they are going to look at how much is being set aside in reserves.
Third, whether or not you decide to get involved with an association, you are automatically a member of that association. I personally recommend that you do go to meetings and know what’s being discussed, because you’ll need to abide by the decisions, so you might as well offer your input.
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Associations can run poorly or they can run really well. The ones that run well tend to have these things in common:
Whether or not you decide to get involved with an association, you are automatically a member of that association.
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- They have regular meetings. Bigger buildings tend to have monthly meetings, and smaller ones tend to have quarterly meetings
- They have an inspector check the condition of the building—the tuckpointing, the general exterior, the roof, and other common areas.
- They also keep insurance updated.
- They will send in necessary documents for things such as declarations, bylaws, regulations, meeting minutes, and sometimes move-in/move-out procedures.
- Sometimes, buildings will use property managers. For small buildings, this can be cost prohibitive, but property managers can make certain things much easier. They organize all the items that are associated with real estate transactions, and they run the meetings that would be occurring on a regular basis.
In Chicago, there is no required way that an association runs. They are required to exist for every building, but how efficiently they run is up to the people in the building. However, the more efficiently and responsibly they’re run, the better off for everyone.
If you have any questions or need a recommendation for a good property manager, please reach out us.
