Page 8 - CooperatorNews Chicagoland Spring 2022

8 COOPERATORNEWS CHICAGOLAND —SPRING 2022 CHICAGO.COOPERATORNEWS.COM Staszczak says that another major is- sue that’s especially common in condo- minium associations is owners not really erning those communities. understanding percentage ownership and common areas. “Percentage of ownership that can help correct the problem. “Lead- seems to be a major source of confusion ing up to purchase,” he says, “at contract, ent from living in a multifamily building. for new owners,” he says. The idea that the as documents start coming through from And in co-ops, there is an interviewing pro- more space you have, the more percentage the association’s attorney to the buyer's at- share you have—and hence the higher your torney, the attorneys should make sure the sale of shares to a new shareholder. That in- monthly assessment—escapes many. “They buyer is reading them. Savvy buyers should terview is helpful in making the new owner want to know why different residents pay also request and read through the minutes aware of many of these issues. different monthly assessments, because they of past board meetings, which are available don’t understand percentage ownership to them. They should understand the com- and how that affects them.” When it comes munity they’re buying into. It’s to their ben- to common areas or elements, most new efit to become familiar with the community sionals—brokers in particular. Many real- owners just think of a community room, an and how it runs. There are lots of small de- in-house gym, or garden-style courtyard— but the building’s infrastructure, including façade and roof, boiler and HVAC equip- ment, plumbing and electrical systems, as well as lobbies, hallways, and storage areas are also common elements, and as such are maintained and repaired using funds from residents’ monthly fees to the condo asso- ciation or co-op. Commensurate with this problem is a lack of understanding of budgets. “Resi- dents may not understand how budgets are built,” says Sprudzs, “and so they don’t un- derstand where their monthly maintenance goes, or the difference between types of line items, like fixed vs. variable costs. First-time tails a buyer should know that are found in gest—sternly, if necessary, though not rude- owners also often don’t understand what these documents. You should know if you ly—that the owner or shareholder contact type of insurance they themselves need. have an assigned parking space or if they’re management for more information or reso- Renter’s insurance is not good enough \[for separately deeded, for instance. If it’s the lat- a condo or co-op\]. They need \[homeowners ter, and the buyer didn’t buy a space along or\] co-op insurance. Renter’s doesn’t cover with their unit, they don’t have parking”— individual unit owner responsibility for which would be a nasty shock if part of the sociations and corporations prefer to have common areas in an insurance claim.” Relatedly, “New owners also often think or HOA was that they thought their unit in- the co-op or condo is responsible for re- pairs inside their units,” says Halper. “They don’t understand they own the interiors ciations have a website and \[make their\] ties may not have full-time or even part- and what’s in them, and are responsible for governing documents available online. The time management and may be serviced them.” A good example is a refrigerator. If buyer can go there to learn about the docu- your refrigerator stops working in a rental, ments and what they contain.” She says that Residents in any multifamily setting should you call the landlord. In a co-op or condo, “it’s also important to have a realtor who is understand the channels of communication because everything on your side of the walls familiar with the specific community and and responsibility in their particular com- is your property, you have to replace it your- self. A more complicated example is a clogged Buyers often assume things without asking sink. If the clog is in a portion of pipe in- side the wall, the co-op or condo owns it, do I get my keys?’ You get them at closing, rules and requirements that govern their and therefore has to repair it, and pay for from the broker, not like in a rental situa- the repair. If the clogged section of pipe is tion. And if you need to change the locks, themselves about what exactly it is they’re inside an individual unit, the unit owner or you call a locksmith—not the association.” shareholder has to fix it—and foot the bill. Not understanding the distinction between should educate buyers, but in reality, it just members, it will also stop a lot of misunder- private and common elements, and how doesn’t work that way. Buyers must edu- that distinction determines who’s respon- sible for what is at the root of a great many don’t require that buyers educate them- disputes between residents, boards, and selves about co-op or condo life. Requir- property managers. How Common is the Problem? In a word, pervasive. The problem of orientation’ class, so you can’t require it. It owner and shareholder ignorance spans co- ops and condos, HOAs, and over-55 com- munities. Younger buyers upgrading from holders or owners, a kind of ‘Living in Our rentals and older buyers downsizing from Building for Dummies’ manual. It’s referred private homes are often ignorant of not only to as a welcome package, but it’s up to the rules and lifestyle conventions in their new owner to use it. Bigger buildings with a long communities, but of the documents gov- Staszczak has a few recommendations townhouse communities often have com- reason a buyer chose a particular building all questions directed to management; oth- cluded a parking spot. Sprudzs adds that “some condo asso- community living in general—not one who munity, and direct their questions, com- is only familiar with single-family homes. plaints, and comments accordingly. questions. New owners will ask me, ‘Where problem is for buyers to be aware of the “In an ideal world,” says Halper, “we them better, more informed community cate themselves. Most co-ops and condos ing it would be a turnoff for many buyers as well. Buyers won’t take an ‘ownership will never happen. Honestly, I’ve never seen it. There are a few buildings that have as- sembled a sort of handbook for new share- history as a co-op usually do this.” Interestingly, Staszczak notes that HOA munity manuals, because they’re so differ- cess with the board before approval of the Staszczak says that “another factor be- fore going to contract that can make a big difference is working with the right profes- tors don’t have the best background in how a co-op or condo operates. Use one who does. Also use an attorney who specializes in co-ops and condos—not just a real estate attorney. Work with the right professionals.” The Board’s Role When faced with questions (or com- plaints) from a new member of the com- munity about any issues, the pros agree that the best response from board members is a smile and a suggestion for how to find an appropriate answer to the question—at least the first time. If a new owner or shareholder persists in badgering board members and refuses to educate themselves, the board member is well within their rights to sug- lution of their problem. Much of this will depend on the indi- vidual co-op or condo, of course. Some as- ers prefer those questions to be directed to board members. Often this depends on the size of the community. Smaller communi- by a superintendent or building engineer. Finally, perhaps the best answer to this most important investment, and to educate investing in. Doing so will not only make standings before they start. n A J Sidransky is a staff writer/reporter for CooperatorNews, and a published novelist. He can be reached at alan@yrinc.com. ORIENTING... continued from page 1 than if they had made those decisions during the fall or winter months.” Neil Betoff, president of STAR Build- ing Services in Shrewsbury, New Jersey, says that his company was already largely booked up by April. “\[Late February\] is the perfect time to do your spring clean- ing walk through, in large part because you want to get on the vendor’s work schedule,” he advises. And Scott Dalley, a real estate man- agement consultant based in Maine, sug- gests boards start preparing for the up- coming season six months in advance. “If you wait until springtime to engage with landscaping vendors, or to con- sider an improvement project on your grounds, then you will be way behind the eight ball,” he says. “You may sacrifice both value and quality of work. For a big planting project, for example, you want to be starting a year in advance, as you may want to get materials in the ground, depending on the nature of the work. A landscaping project undertaken in the fall can literally bear fruit, or at least the desired effect of your planning, when the spring arrives.” Safety & Structure First and foremost, a building and its surrounding property should be visually inspected for anything that could affect safety or structural integrity. Bressler suggests choosing a starting point—ei- ther the roof or the cellar—and work- ing through to the other end thoroughly and methodically. “Check pipes, fittings, structure, seals, and so forth for any dam- age, leaks, cracks, et cetera, and notify any vendors you may need with your repair lists,” he says. “While you are conducting your inspections and soft starts”—the preliminary tests of equipment that has been dormant over the winter, like air conditioners or pool pumps—“make spot repairs as you go along. If existing staff cannot handle it, contact your vendors now, before they get very busy and you will have to wait. Prioritize your projects and set them on a timeline. This will al- low you to go back to one central location to check them off as completed.” Betoff says that the often-harsh New Jersey winters are especially rough on sidewalks and pavement, so managers and supers should pay particular atten- tion to these surfaces as they conduct their walk-throughs. “Look for cracking and problems with sidewalks, parking- lot alligatoring \[a condition where a se- ries of cracks appear in one area of pave- ment that often intersect and crisscross in a scaly pattern\], potholes, and dam- aged curbs from snow removal plows,” he says. “Now is the time to fix those. Also look for cracks on the building exterior— continued on page 10 SPRING... continued from page 1 “At contract, as documents start coming through from the association’s attorney to the buyer’s attorney, the attorneys should make sure the buyer is reading them.” —Eric Staszczak