It’s those small, easy-to-miss changes at your condominium that’s what keeps the Board up at night.
But some of those small changes can make all the difference in the long run…
It’s seemingly so simple, but this is what a good condominium board of directors spends most of it’s time on.
The large-ticket items are always there, but overseeing the day-to-day nuances can have a larger financial affect in the long run.
In my example at Vu Condos, the glass on the walls near the moving elevator continuously gets chipped, scratched, or completely smashed, and it’s getting redundant for the condominium corporation to continuously play for the repair. At what point does it become more efficient to replace the glass?
It depends on your time horizon, I suppose. If you determined that you’d break-even after 25 years, then most condo boards likely wouldn’t replace the glass. Most people don’t live in a condo for 25-years, in fact, I find most of today’s buyers are only there for 3-4 years and could care less about a few hundred dollars in repairs versus several thousand.
But if you determined that you could break even after, say, 4-5 years, then it makes sense no matter who you are, and how long you’re living there.
I recall a situation a few years ago when I was on a different board where we spent about $1,000 to replace light bulbs, since the government gave us a $500 credit, and it would save us about $500/year in electricity. Our break-even point was only a year, and we were getting money from the government – which is always nice!
Serving on the Board of Directors is NOT a committment of one 3-hour meeting, once per month. If this is the impression you have, then you simply can’t begin to comprehend the amount of work that goes into running a “home” for five-hundred people.
I’ve said it before, and I’ll say it again: join the board of directors for one year. You’ll learn more about condos than you ever thought possible, and you’ll have a new appreciation for every facet of the building and how it’s run – including the odd piece of broken glass…