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 [...]
7 reasons to not ignore your condominium reserve study: Deferred maintenance: Without a reserve study, it can be difficult to budget for and plan for major repairs and replacements. This can lead to deferred maintenance, which can cause the condition of the condominium/ homeowner complex to deteriorate over time. Special assessments: If the condominium/ [...]
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 [...]
Aging Infrastructure in Condominium Complexes The Surfside Condominium collapse continues to resonate through the industry sounding the alarm about the health of building's infrastructure. Many boards are still operating in the dark underfunding reserves in the hopes that we won't have a failure. Other boards feel comfortable in having $100,000 plus in reserves that 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. [...]
We frequently get questions from board members on why certain assets not included. What assets are most likely to be excluded? The general rule is if a component (assets) has a life greater than 30 years its outside the scope of the study. For example, natural gas piping has a life of 50 years [...]
Our blog has discussed over the years the value of having a Reserve Study. It is, after all, one of the best practices an association can take to protect property values. None of us want to see the value of our home slashed and our home equity vanish. But that’s exactly what happens when maintenance [...]
What happens if our association reserves go to zero and we don't have money to do maintenance? Do we go bankrupt? An association that fails to make adequate contributions to their reserve fund are on a path to insolvency. Could the board take on significant debts that it can't pay for? Yes, they could. There [...]
How should we invest our Reserve Fund? We frequently get the question on what should we do with reserves especially with recent inflation increasing costs. Washington State's Laws governing associations (RCW 64.34) is pretty clear. They don't have any restrictions other than an association needs to have a separate reserve account. So the board has [...]
