Demand for rental units has been rising in the last few years as a result of rising home prices, declining senior homeownership, increasing single-occupant households, and difficult mortgage lending standards. To combat this, a new trend has emerged where all units in a condo are sold to a third party who “deconverts” the condos into apartments.

Here are 5 considerations in the deconversion process:

  1. Profitability. Transforming condos into apartments and renting them for the current market rental rate can be incredibly profitable.
  2. Letter of Intent vs. Binding Agreement. There are two scenarios in which a deconversion transaction may occur. The first is an unsolicited offer from a developer or purchaser, the second is an association that voluntarily seeks out an offer.
  3. Deferred Maintenance. Developers and investors should keep in mind any maintenance issues that may arise when evaluating whether a condo is a viable deconversion candidate.
  4. Building Code Violations. Code violations and uncleared permits can slow down or prevent the sale of all units in a condo deconversion transaction.
  5. Legal Issues. If 75% or more of the condo ownership approves the sale of the units, the action is binding for all unit owners.

To learn more, click here

 

Sometimes your condo association president can become a dictator. They can bully and intimidate fellow board members, the manager, and association members. Behind the scenes, they can be just as disruptive and stubborn.

However, you don’t have to put up with it.

Boards and owners have the power to remove an association president who behaves this way. Legal experts say that under most state laws and association governing documents, the board president has few powers beyond those held by other board members. Additionally, most laws and documents give association boards the power to remove the dictator from the presidency by vote at any time.

There are 5 basic steps that can be taken to remove a president, starting with the most basic procedure and escalating to the most extreme.

  1. Talk to the president and ask them to change their behavior
  2. Look into your association’s governing documents and laws to determine how to schedule and conduct a vote to remove the president from office
  3. Vote to remove the president as an officer of the board
  4. Vote to remove the president from the board entirely
  5. File a lawsuit

To learn more, click here.

 

The declaration of your condominium can be amended to prohibit smoking within individual units, as long as the amendment does not violate public policy.

In fact, public policy supports limitations on smoking. Declaration amendments that prohibit smoking throughout an association’s property are becoming increasingly popular.

To read more, click here.

 

 

“Parliamentary procedure” refers to the rules that outline the structure of business meetings.  But why is it important and what does it entail?

Why is it important to follow Parliamentary Procedure during condo board meetings?

  1. It drives efficient decision making
  2. It prevents chaos by allowing attendees to raise concerns in a structured manner
  3. It helps run large meetings effectively

What role does each board officer play in Parliamentary Procedure?

The President’s role is to:

  1. Set an agenda
  2. Ensure quorum is met
  3. Direct an effective meeting that follows the agenda

The Secretary’s role is to:

  1. Keep meeting minutes

An Attendee’s role is to:

  1. Wait to be recognized by the chair before speaking, and address motions and comments to the chair.
  2. Move through the meeting by making motions and seconding other motions
  3. Speak first when making a motion, but keep what you have to say to 2 minutes
  4. Vote on motions at the end of discussion

Understanding parliamentary procedure, and the role everyone plays in it, helps facilitate a well-managed meeting.

To read more, click here.

This Saturday, June, 8, from 9:00-11:00 a.m., North Side Community Federal Credit Union will be hosting a free condo education homeowner training. The workshop is for condo owners in self-managed buildings. You’ll learn about:

  1. The differences between owning a single-family home vs. a condominium
  2. How to make sure your board is complaint
  3. How to evaluate your building’s financial risk
  4. How to plan for assessments and major repairs

Haus Financial Services’ own, Lauren Peddinghaus, will even be speaking about financial best practices.

The workshop will be held at the MLK Room (4750 N Sheridan Rd. Chicago, IL 60640). Breakfast and all materials will be provided.

Register here.

 

 

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