Many condo projects will have a board of directors who are responsible for the buildings, often managing them on account of the actual owners of the condo and ensuring that everything is done properly.
If you become a member of one of these boards you need to be aware of the responsibilities that you have towards the rest of the board and the people who have invested in the condominium. This is especially the case if you yourself are an investor and you’re looking to become a part of the board so that you can protect your own investment.
Playing By The Rules
The rules and laws that you need to abide by will have been created by both the state government and the governing documents created by the condo association that runs the project, so it is vitally important that any actions you take as a member of the board follow these rules.
This serves to protect the condo and ensure that no bad decisions can be blamed on a failure to follow proper procedure. It also protects investors from potential legal action against them should it be discovered that something is not being done as it should be.
You will also be responsible for enforcing what are known as the “covenants”, which are the rules that all of the residents of the condo need to follow. These rules must be enforced fairly and evenly, without any favour being shown to any residents.
Acting In The Best Interests Of The Condo
Investors will be expecting to make a return on their investment, so it is important that every decision you make as part of the board is made with the best interests of these people in mind.
Of course, this shouldn’t stretch so far that you start breaking the rules that have been laid out for you, but you should always ensure that what you do is for the benefit of the whole, rather than for yourself or particular residents of the condo.
Maintenance
While condo owners will be tasked with repairing issues that happen on their own units, the board will be responsible for maintaining the common areas that every resident of the condo is able to use. For example, the hallways, amenities and the exterior of the building all fall under the control of the board and thus must be dealt with by them.
This means the board must be able to prioritise repairs based on resident’s needs, in addition to informing them of when repairs will be carried out.
Financial Issues
The overall budget of the condo association that maintains the building is governed by the board, which means that each member has a responsibility for deciding where those funds are spent and one what.
The director’s job is to review each year’s budget and decide where it is going to be spent, so as a member of the board you will be required to provide as much information as possible for a good decision to be made.
Furthermore, you will also be required to extract payment from members of the association and owners of units if they fail to make their required payments, which includes handling any legal issues that arise as a result.