Page 9 - New Jersey Cooperator January 2019
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NJCOOPERATOR.COM THE NEW JERSEY COOPERATOR — JANUARY 2019 9 No matter what your size… You will always fit at Denali! With decades of experience, our team of experts is committed to Request a Quote today! 1uest a Quote today! 1-uest a Quote today! 1-888888-888-315315-315-7773 7773 uest a Quote today! 1uest a Quote today! 1uest a Quote today! 1 Req Req Req Req Req www.denalipm.com ww.denalipm.com ww.denalipm.com w w Highrise Condos, Town Homes, Adult Communities, HOAs, Brownstones, Multi-Family Superior Service Financial Transparency Rigorous Collections Communication Website Technology Capital Project Planning Online Payments Live Customer Service Potential Legal Issues Jeff rey Turk, a partner in the Braintree, Massachusetts-based law fi rm of Turk & Qui- jano, says: “People buy a condo so they don’t have the headaches of a home. Someone else mows the lawn and shovels the snow. But in a small condo, you don’t have that. Who is going to do those tasks? You. Th ere are no economies of scale.” Financial considerations can be even more pressing. “If someone doesn’t pay their condo fees in a 100-unit condominium as- sociation,” Turk continues, “there is likely still enough money to keep operating. In a four- unit condo, that might not be the case. Th e problem is that condominium associations are true democracies. Everyone has an opin- ion and a vote. Who wants to spend money and who doesn’t? Th ere may be three mem- bers; two want to pay for lawn maintenance, the third does not. What then? Sometimes documents in small associations require a unanimous vote, and one member can hold up the whole process. You need a good set of condo documents specifying that the associa- tion must hire professionals to do the neces- sary tasks. Th ese people are your neighbors. It’s just easier to put it in the docs so there’s no other choice.” Turk describes one situation where there was a two-unit condominium association. “One owner was completely irrational. He wouldn’t pay for anything to get done, and wouldn’t do it himself. Th is ended up in liti- gation, which was prohibitively expensive.” Ultimately, one owner sold to someone else. “Th ey were lucky to fi nd a buyer,” says Turk. “If the buyer had looked at public re- cords and seen the lawsuit, they might not have bought. Th at brings up another consid- eration. You never know who your neighbors may be in the future.” While that’s true in any multifamily environment, one unhinged neighbor in a 100-unit property may be less impactful than in a fi ve-unit property. Words of Advice Abel has lived in a small condo associa- tion in Boston and says the experience was a positive one. But as a property manager, he off ers the following observation about micro- associations: “Lack of professional guidance is the biggest problem. Owners tend to make things up as they go along, since they don’t have guidance on how to enforce rules, hire properly insured contractors, etc.” Rules need to be put in place, respected, and enforced. Fox adds: “One of the challenges of small buildings is that the entire building may be on the board. In a small building that can be challenging, as oft en the members are inex- perienced with respect to the ownership and management of real estate. On the fl ip side, it can be very gratifying because when you as a manager do something well, everyone knows about it and recognizes it.” Small association living may not be for everyone. McIntyre cautions potential own- ers. “Th e buyer oft en isn’t thinking about this when they’re looking for a place,” he says, “and oft en doesn’t realize the responsibilities they’ll have until they’re in and have to par- ticipate.” So, if you’re thinking about living in a small association, go in with your eyes open. When it snows, someone has to shovel – and that may be you. n A J Sidransky is a staff writer/reporter with Th e New Jersey Cooperator, and a published novelist. “If you’re thinking about living in a small association, go in with your eyes open.”
