Dear Patty - Managing Multis
Wednesday, August 14, 2013
I’m considering an offer to manage several condos. Are there any special considerations I should take?
When managing condominium units — as rentals for individual owners — it is important to be fully versed in the condominium declaration and bylaws for the individual condominium units managed.
This document will govern the number of times a unit may be rented within a one-year period, provide the prescribed steps required for approval of the tenant, and in some cases provide a prescribed document to be utilized for board approval of the potential tenant. Many condominium documents even require criminal background checks and contain certain prohibitions pertaining to tenant criminal history.
Many condominium associations require approval of the rental agreement document being utilized. I recommend that you get to know the Condominium Owners Association (COA) management so the placement of tenants goes smoothly. In most condominium developments the COA, through an elected board of directors, manages the daily business of operating the condominium development. Depending upon the size of the development and the aggregate income generated by the association dues, the board of directors will hire a Condominium Association Manager (CAM) to manage daily operations, collection of and accounting for COA dues, common amenity upkeep, common area maintenance, and preservation of the capital elements of the development.
Become familiar with the management and rules for each condominium unit that you will be responsible for managing. Prior to entering into any management agreement it would be advisable to schedule an appointment with the management of the association or its appointed agent or on-site employee responsible for the day-to-day operations relating to the unit you will be managing. Request information, forms, guidelines for the potential tenant's approval, and the rules and regulations imposed by the COA.
Another important suggestion is to make the rules and regulations an exhibit to the rental/lease agreement for the tenant to acknowledge and agree to follow during tenancy. The education of the tenant pertaining to the required rules of the specific development provide for an educated commitment on the part of the tenant.
"Patty the Property Manager” appears courtesy of the ORRA Property Management Subcommittee. Readers are invited to submit property management related questions to Patty by sending an e-mail to firstname.lastname@example.org.
The ORRA Property Management Subcommittee provides this property-management advice column as a service to ORRA members. The column is intended to provide a general understanding, not as a substitute for individual legal consultation. The column should not be relied upon in specific situations without consulting a real estate attorney.