Would Extra Fee Reduce Number of Absentee-Owner Units?
QUESTION: Our condominium association is considering charging an additional fee or a higher monthly assessment for absentee owners who lease their units to tenants. There is additional work and expense when communicating with absentee owners.
Our volunteer board performs our maintenance, accounting and other association duties and absentee owners do not participate in these responsibilities. We also feel that the increased fee may discourage absentee ownership.
In our relatively small complex of 35 units, it is getting more difficult to find enough resident owners who are able and willing to serve on the board of directors. How do we resolve this problem?
ANSWER: First, I don’t think you will find more owners willing to serve on the board as a result of charging these additional fees. If owners are getting tired of serving, then it’s time to consider a management company to handle the maintenance and accounting functions.
Second, you must read your association’s legal documents to determine whether the association has the authority to charge a higher fee to absentee owners. I have seen many declarations that state that all owner assessments “shall be equal.” Remember that the word shall means must in a legal document.
Third, if the authority to charge absentee owners a higher fee is stated in your documents, then you must decide what a fair and reasonable fee would be. Can the extra fee be justified by extra services provided, such as additional postage and extra copies of correspondence for both the owner and the tenant?
Also, does the association provide common area keys or copies of the legal documents and rules that would be chargeable to the owner? What other charges do you feel are justifiable? After you have considered all these factors, then seek the advice of your association’s attorney prior to approving the new fee. Proper notice should be given to all the owners so that they can respond with any questions or concerns before the new fee is initiated.
If one of your goals is to reduce the number of rental units, I doubt if the extra fee would effectively discourage owners from renting out their units. After further study and discussion, you may decide that the extra bookkeeping involved with having the extra fee just simply isn’t worth it.
Owner Claims Board Acts Like Dictatorship
Q: I feel that I and all the rest of the owners are the victims of a dictatorship that exists in our association. The board’s lack of maintenance has reduced the value of our townhouses, and many people have lost their homes due to assessment lien foreclosures simply because of poor bookkeeping procedures on the part of the management company.
There is collusion among the non-resident realtor board members, foreclosure attorneys and the management company. The board president has threatened the lives of owners who have indicated an interest in running against any of the incumbents. Many of our owners have tried writing to congressmen, city officials, the local board of realtors and the attorney general. Nothing has been done. The cost of litigation is beyond our means. What can we do?
A: Your letter is too lengthy to print in its entirety, but you cite several broad examples that show that you have a general distrust of the board as well as the association attorneys. I suggest you consult an attorney who can represent you and any other owners who are dissatisfied with the board’s operation of the association.
Most of the government agencies do not have enforcement capabilities against the guilty parties unless you submit written complaints with specific evidence to back up your claims or file a legal action through an attorney.
If civil codes are being violated, then you and the other honest owners will have to consider whether you can pool your resources for legal assistance. Criminal acts should be reported to the police.
Wants Association to Complete Repair Job
Q: How can I get my condominium association to complete repairs to the common area plumbing that involves repairs in my condo unit?
New pipes were installed, which required tearing out some of the walls in my unit. The plumbers damaged some plumbing fixtures and did a poor job of replacing and painting the dry wall. Repeat visits to correct the defects have proven that the damage cannot be fixed without major rework and expense.
The association and I are at an impasse regarding the extent of the repairs and the responsibility for payment. What can I do to get them to correct the problems and is the association responsible for the cost of the repairs?
A: This is one of those situations where a bit of communication and some written assurances before the work started would have been helpful. You should have been told whether or not the association would be responsible for all of the finish work to restore your wall to its original state.
If the facts are correct as you have stated them in your letter, the association is probably liable for the repairs. Fixtures that were damaged by the plumbers during the course of the work should be covered by the plumber’s liability insurance. The association should have protected your interests by making sure that the company has adequate liability insurance.
Sometimes it is impossible to restore a wall to its original condition if there are wall coverings or improvements that cannot be matched. You will have to be understanding and work out a compromise if that is the case.
Write a letter to the board citing dates of the original work and repair work and requesting that they place this issue on the agenda for the next board meeting. This will give you an opportunity to speak with the board and discuss possible solutions. Ask the board how you can assist them in resolving the matter.
If the board is uncooperative, one of your options would be to have the work done yourself and then try to collect in Small Claims Court. Before doing so, inform the board in writing, including your estimate of the cost of repairs and your intent to collect from the association, so that you have full documentation for your court case.
Hickenbottom is past president of the Greater Los Angeles chapter of the Community Associations Institute (CAI), a national nonprofit research and educational organization. She welcomes readers’ questions, but cannot answer them individually. Readers with questions or comments can write to her in care of “Condo Q&A;,” Box 5068, Thousand Oaks, Calif. 91360.
