My husband and I are 1st time how buyers and we have found a condo in the area we want to be in for a great price. My concern is that the building, that houses 7 units, is self managed. We live in Chicago were the ousing market has cooled a little and I just do not want to make a bad purchase our 1st time out. Help!!
2007-02-19 05:52:30 · 4 answers · asked by Akeya S 1 in Business & Finance ➔ Renting & Real Estate
A 7 unit condo is simply too small to hire a management company or a full time manager. In such small condos typically there are one or two owners who take on the responsibility of getting things done - ie, calling repairmen; contracting with lawn care people, etc. If they sell out, things can go downhill pretty quickly unles YOU are willing to step up. Also, it depends upon the units being occupied by owners. If more than one or two units are occupied by renters from absentee owners, forget it. Tenants & absentee owners do not take the personal interest in maintenance, repairs & improvements that owner-occupants do.
The upside: There is a trend to building these small condos in good or gentrifying downtown neighborhoods where large scale condos can't fit in. So chances are prices will hold up or appreciate better than in big buildings.
2007-02-19 08:29:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's true that a 7 unit building would likely just be wasting money hiring an outside company. That being said, you do want to make sure that they have a good budgeting plan in place for future repairs. Always better to budget and collect in advance than to slap everyone with a big, one-time assessment for repairs, which can happen if things aren't done right.
My brother's condo is self-managed, he wouldn't have it any other way. His is maybe 120 units?
Best advice, if you do buy this one (and if their budgets and bylaws are ok, this isn't a reason to say no otherwise), get involved in the HOA. Attend the meetings and see what they're up to.
2007-02-19 09:27:15 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Look at the terms of the ASC. by laws. Does every one have the same vote on what must be done and how often are the meetings and must every owner be there. It is not a bad idea to ask questions --but you are not paying an outside firm to tell you that the roof needs to be replaced. Or the building needs painting. All 7 owners and or spouses can see these things
2007-02-19 06:11:40 · answer #3 · answered by golferwhoworks 7 · 0⤊ 0⤋
Ask to see the CC&R's and HOA rules.
Why would you want an outside company taking 10% to tell you
what your building needs and who to hire?
I own a 3 million dollar condo in CA that the owners manage themselves and it is great!
2007-02-19 07:32:31 · answer #4 · answered by charlotte q 2 · 0⤊ 0⤋