Condo Juice Condo Association Advice for Small Condo Associations

3 Questions You Must Ask About Your Neighbors Before Buying A Condo

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Buying a condo can be a magnificent way of realizing your dreams of home ownership. If you think you have found the perfect condo and are ready to commit to a purchase, it is imperative that you understand certain things about your future neighbors. Whether or not those neighbors are responsible ones can affect the manner in which your homeowner association is run. Many prospective condo buyers do not realize what a dramatic effect this can have on the value of their condo in the long run. Therefore, there are three important questions you must ask about your neighbors before making this important financial investment in your future.

Question #1: How many units in the building are rentals?
Any potential condo buyer should check to make sure that the number of renters is limited to a particular percentage of the building. Renters can be less likely to take proper care of their condo or any common areas than owners who have a vested interest in the property. This type of situation has a negative effect on property values. Because of this, in some areas the major private mortgage insurers currently require no more than 30 percent of units within an association be occupied by renters. This stipulation, down from 40 or 50 percent, has become more stringent over time. Lenders are also taking a closer look at loan applications for condos in buildings with high rental saturation. Lenders assert that history proves buildings with a high rental occupancy ratio are difficult to sell and do not maintain their value as well.

Question #2: Do neighbors pay their dues on time?
Buying a condo and being a member of the homeowner association means that you understand your obligation and fiduciary responsibility to pay dues in order to enjoy the services and amenities that all residents come to expect. Neglected landscaping and swimming pools and decaying parking lots, for example, also erode property values and make it very difficult to sell vacant units. A failure to maintain the building and its systems can quickly send an entire condo community into a downward spiral. As a potential buyer you will want to request a history of dues payments. You do not want to find yourself living in a building among other dwellers that are bringing down the entire association due to their irresponsibility. In some situations, when other members of the association are not paying their dues, it is the responsible condo owners who end up footing the bill to compensate. In the worst case scenario, some condo owners have even occasionally found themselves being foreclosed upon due to months of dues being in arrears. You do not want to wind up living in a building with a high rate of foreclosures.

Question #3: How do the homeowner association issues get discussed?
Having an open line of communication is the cornerstone of any well-run homeowner association. You should check to ensure that some sort of system of records is in place for all matters that are discussed. For example, the association might utilize email, online forms, minutes of meetings, etc. Knowing the guidelines for communicating with the homeowner association will come in handy if, for instance, you ever have a complaint or concern about a neighbor, or if you find yourself on the receiving end of a concern or complaint from a neighbor. Furthermore, it is also wise to find out what access members have to those records and what steps are necessary to request them if it becomes necessary for legal purposes.

Purchasing a home is a decision not to be taken lightly. It is a fatal mistake to think that purchasing a condo does not require the same careful thought as purchasing a single-family home. Considering the impact your neighbors will have upon your decision is no small part of the matter either. Gathering this kind of information now will make you better informed as to whether the condo you have your eyes on is truly a sound investment. It is preferable to do as much research as possible now as it is to discover later on that you are living in a situation from which you may not be able to get away.