Avoid Water Damage This Winter

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 16 January 2018

Water damage accounts for 20% of homeowners’ insurance claims. 40% of homeowners have experienced loss from water damage and billions of dollars in property losses are spent each year for water damage.

However, 93% of water damage can be prevented. Sub-zero temperatures are very common during Chicago winters, which can cause big problems for condos due to burst pipes affecting adjacent units. Remember to check any vacant units and be sure the heat is on and the water is shut off.

Click here for more tips on ways to protect your community in the cold temperatures.

Resolve to Save in 2018

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Written by Lauren Peddinghaus

Category: What We're Thinking About Lately...

Published: 08 January 2018

Your association's financial health is dependent on setting an appropriate budget, reducing delinquencies and keeping expenses under control. Professional financial processing services that address these needs can actually save you money in the long run by helping you avoid costly legal action.  However, if you are a self-managing building you may not be aware of saving opportunities.

Here are a few ways that your condominium association may be able to trim your budget and keep assessments from spiraling out of control in 2018 and beyond:

• Have your insurance reviewed by a broker.

Many condo associations simply renew their existing policy year after year without taking the time to explore other options. Just like your car insurance, you may be able to save on premiums with a different carrier. You may even find a policy with better coverage, to boot. An insurance broker can help you to find savings across a number of different carriers.

• Explore waste removal options.

At Haus Financial Services, we see a wide range of pricing across our small condo clients. Even buildings of similar size are paying widely varying bills for their waste removal and recycling services. Price comes down to the carrier you use, the amount of service you require, and your ability to negotiate the best deal. You'll need to review your existing contract terms if you want to make a change, but this is a great expense to review for potentially huge savings.

• Move reserves to a no-fee account.

Many brick and mortar banks are charging monthly fees on accounts that do not maintain a minimum balance. And those minimum balance requirements seem to be climbing continually higher while interest paid is virtually non-existent. An online account such as the Capital One Spark Business account, which has no minimum balance requirement and no fees, plus the ability to transfer funds to and from external accounts, is a good option for small condo associations.

• Avoid unnecessary city fines for overfilled dumpsters.

The city of Chicago is cracking down on overflowing dumpsters, which promote rodents and other unsanitary conditions. Make sure that your waste removal service is adequate for the amount of waste being produced by your building. If you are concerned that neighbors or anyone other than owners and tenants are using your dumpsters, speak to your waste removal company about securing them.

The Condominium and Common Interest Community Ombudsperson Act seeks to address owner complaints

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 20 December 2017

On January 1, 2017, the Condominium and Common Interest Community Ombudsperson Act was amended. Included in the original legislation enacting the Ombudsperson Act was a requirement for associations to adopt a unit owner complaint resolution policy. As of 2017, that must now be done no later than January 1, 2019.

Each association is required to make the written policy available to all unit owners. Associations should be proactively addressing this requirement in 2018.

Beginning in July 2020, qualified unit owners will be able to make written request to the Ombudsperson for help with resolving disputes between unit owners and associations. This provision will be available only if the legislature provides funds for the program. As a result, whether or not the Ombudsperson will actually materialize remains to be seen.

The 2017 amendment also establishes that the act will be repealed on July 1, 2022. 

For details on what must be included in the written complaint resolution policy and the qualifications to make a complaint to the Ombudsperson Office, click here.

Holiday Decorations in Condo Associations

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Written by Alexa Jackson

Category: What We're Thinking About Lately...

Published: 14 December 2017

Holiday decorations are an issue that Boards must deal with every year. Although decorations can be festive and exciting, Boards must sometimes prohibit certain decorations.

Boards must regulate decorations because they have an obligation to limit liability and protect the health and safety of all occupants. Additionally, the Board is responsible for maintaining a cohesive aesthetic in the interior and exterior of the property.  

In general, the Board is allowed to adopt rules limiting certain items from being hung on common elements for reasons of safety and aesthetic cohesiveness.  Problems can occur when rules are not established and there is a disagreement over decorations. Unit owners have the protected right to display certain religious articles, so the Board may need to consult legal counsel when creating rules or when taking action in the absence of any established rules.  

To learn more, click here.