Underfunded Reserves in Washington State Condominiums Similar to the national situation, underfunded reserves are a major concern for condominium associations in Washington State. One key reason for this problem is that condo boards may have an overly optimistic or uninformed view of the true cost of maintaining their community's common areas. Here's a common misconception: [...]
At first glance Condominium and Homeowners Association will see that the initial cost of a reserve study as expense. However, the long-term financial benefits for an association far outweigh that initial expense. Here are 5 examples of how a current reserve study can save your association money: Proactive Planning & Budgeting: A reserve study provides [...]
Review the contract: This is the governing document and hopefully the board closely examined it before it was signed. A good contract stipulates what each party's responsibility is. This will help you understand your rights and the contractor's obligations regarding work quality, timelines, and dispute resolution procedures. For example, if there is a cost overrun [...]
Even after careful selection, condo associations might encounter problems with a seemingly reliable contractor. While some projects face genuine challenges, repeated issues could signal deeper problems with the contractor's competency or management. Here are 5 red flags to watch out for: 1. Supply Chain Issues: This excuse, while relevant during the pandemic, is fading as [...]
5 key things every homeowner should know before joining their HOA board of directors: dealing with conflict 1. The time commitment is real: Being on the board isn't just attending monthly meetings. Expect regular committee work, handling resident concerns, and potentially dealing with emergencies. Ensure you have the time and flexibility to dedicate [...]
The Challenges of Raising Assessments to fund association reserves As a board president in Washington State, you've just discovered that your association needs $200,000 to replace the clubhouse roof due to a leak. Your operating budget has no contingency funds, and your reserve fund, which has not had an increase in many years, has a [...]
Lies Contractors Tell your condominium or homeowners association Washington state homeowners are expected to spend an average of $8,822 on repairs and renovations for their homes in 2023. This is according to a recent survey by HomeAdvisor, a marketplace for home improvement services. For a 30 unit condominium thats over $260,000, which is a significant [...]
For purposes of this question we are defining capital improvements as the expenditure of funds for new, not previously existing, components. Some associations want to include capital improvements in the reserve study. Most do not. In our experience the only reason that associations include capital improvements in their reserve study funding plan is because they [...]
Once you have found the condominium that fits your dreams, one also has to look at everything outside the condominium. Deferred maintenance. As an owner you have a financial obligation to pay for the maintenance. Does the complex looks like its well maintained? Does it look like the maintenance is being postponed or deferred? Deferred [...]
Homeowners occasionally bring lawsuits against condo board of directors, though it's worth noting that these legal actions often prove unsuccessful. Most homeowner's have never used a litigation lawyer and are unaware of the costs of such a legal action. Regardless, as a board member, it's important to maintain vigilance and avoid any misuse of authority. [...]
