How to Determine Whether Your Condo Building Is Well-Managed

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In this tutorial video, we'll explain some tips and tricks to determine whether your condo building, or a condo building you're considering buying in, is well-managed or not.

This means whether it has a professional, organized and lean managing agent and an engaged and honest condo board. Having both of these parties competent and professional will make a world of difference for condo unit owners, and will determine how much they'll have to pay out of pocket for monthly common charges and any special assessments. It can also help determine whether banks will want to finance in the building.

Keep in mind that a lot of this is subjective, and a lot of the good information will be highly subjective, such as what you hear from a friend who lives in the building and has witnessed condo board meetings in-person or via video-conference.

However, a lot of these more subjective insights often happen to be the most powerful, as there's a lot more you can glean from your friend's perspective of a board meeting they sat in on vs what you might be able to glean from the audited building financials, or the board meeting minutes if you're so lucky.

With managing agents, it's a tidbit easier to get a sense of their professionalism as a prospective buyer because you'll be interacting with them once you're in contract to get diligence documents etc. Use this opportunity to see whether they're professional, responsible, honest, nice etc.

You can also do things like ask the managing agent for what the common charges have been over the past 5 years, and use this as a rough gauge for the financial responsibility of the building's management. Have costs increased in line with inflation, or ideally remained flat? Or have costs increased significantly higher than inflation? If so, that might be a red flag that this building is mis-managed, or worse, corrupt!

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Hauseit Group LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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