Thursday, March 13, 2014

Quality of Condo vs House Lifestyles: You Get What You (Must) Pay For

This is a brief analysis of why tenants who demand repairs on their condo while withholding payments is a terrible idea not only for the maintenance of their condo unit, but also their relationship with their condo association. Surely, it is a pain to have to wait on someone else to do the work for you in your condo as opposed to a house, where the punctuality of the repairs is determined solely by the homeowner.

Withholding payments from condo fees from your HOA charged while waiting and complaining is just as ineffective to withholding payments for state taxes that fix potholes in the roads that you commute on daily.

The repercussions of payment refusal can land you with hefty fines for delinquent dues. In casino gaming terms, if tenants of the condo association are going to gamble in this way, just remember that the house, or HOA, always wins.

A Condo Tenant's Main Problem: Maintenance

For many homebuyers, the determining factor for their investment is the lifestyle choice. In the process of deciding your permanent residence to build home equity and a revocable trust, people may want to have a concierge and parking lot with security with a revocable trust that protects them in their investment. But as you know from our previous blog on condo costs involved in moving into a condo, make sure that you do your research because it may be more expensive for you than expected for things such as unexpected "special assessment" fees due to upgrades to the condo building.

Repairs in your home are a nuisance every time they change the way you live. The question is how long can the nuisance last? The owners of houses can pay on their own time when they want it upgraded. Condo owners are willing to pay for the convenience and risk in relying on property management  companies to handle the maintenance problems  in their home that require hard labor and hours that you find hard to spare to fix them yourself.

Most condo associations cover the maintenance of the common spaces, as well as the landscaping, trash, and snow removal. One of the main risks of the living in a condominium is reliance on property management company. They can schedule repairs, and can delay scheduled repairs as well. And you can't do anything about it, right? The frustrations may even make you want to withhold the condominium tax fees that you incur on from the homeowner association.

Courting Tenants

There is a lot of upkeep and time required that goes into living in a single-family home. But consider the fact that there is much more time required beyond one single condo unit owner's repairs needs. Living in a condo building among many neighbors above and below your respective place on a daily basis means there is a lot to account for time-wise for the property management company to tend to your maintenance. Refusing to pay affect other condo owners living, which could lead to costs on the HOA, which can land you a visit in court due to a lawsuit from the HOA. Withholding fees can also risk foreclosure on your home, even without protection from a revocable trust that you may have set up for your home.

So what is the best way to protect yourself in this situation? Make sure that you meeting the property managers to get on their good side. Also, check to see if the condo that you are buying does not have any outstanding liens or foreclosures in the building. If the rate is 15% of the units in a foreclosure status then that would be a bad place to place your bet or long-term investment. Lastly, it always helps to understand the HOA's by-laws or CC&Rs (covenants, conditions, and restrictions). You should hire a lawyer, or you can refer to another previous blog post of ours about condo insurance explained or how your condo is insured and policies of the HOA.

Final Thoughts

So how good has your property management company been to you? Have they made you want to refuse payments at any point? Or how well do you know your HOA by-laws and policies for refusing payments and monthly charge terms? Tell us your thoughts and we can give you some great input.

You can refer to the following links for reference of the statistics from this post