Yes, that is the hockey signal for “interference” – arms crossed in an “x” against the chest. What can I say? Playoffs are on!
But hockey aside, I’ve never witnessed so much interference from condominium boards as I have over the last few months.
These people do own condos, right? So how come they’re working so hard to suppress the values?
First and foremost, kudos to anybody, anywhere, who is serving on a condominium Board of Directors.
It’s a thankless job, and after working hard 9-5 every day (or likely more….), the last thing anybody wants to do is sit in a stuffy room for three hours and go over the building’s problems.
But it needs to be done, and I commend anybody for taking part.
However, what I don’t understand are the condo boards that rule with an iron fist and make decisions that negatively impact the market value of the condominium units.
What I’m talking about here specifically is access to the property by Realtors and potential buyers.
I know that many people hate Realtors, notably lawyers and teachers that are on condo boards, but I can’t figure out how short-sighted some condo boards are when they implement rules and regulations that make it impossible to show condos that are for sale.
I’m assuming that at some point, the members of the board of directors will sell their units, and thus they’ll not only want access to be granted to potential buyers, but they’ll also want to get top dollar for their properties!
So why all the tough love?
Well, accuse me of ageism if you want to, but I believe that many boards are made up of senior citizens who have nothing better to do with their time.
Case in point, my brother’s old condominium had five members on the Board, all in their 70’s.
At the Annual General Meeting, when a resident in the crowd would ask a question to the board, the President would stop, pause, and answer with “Yeah…..so…..anyways…” before ignoring the question and moving on.
I feel that many older members of condo boards believe that they will be in the building until their final, dying days, which leads them to implement strict policies about access to the property.
If you live in an old folks home, then I understand.
But if five people in their 70’s are presiding over a building that is home to an age bracket that includes people in their 20’s, 30’s, 40’s, and 50’s, then I think they are doing their “constituents” a dis-service.
There are three major issues I have at the moment, all of which fall directly under the board’s control:
1) Lockboxes
When we as real estate agents show a condominium unit for sale, we need to first obtain the key.
The easier it is to get the key, the more smoothly showings will go, and likely the more interest there will be in the property.
In many buildings throughout the city, the front desk or concierge will keep keys in a drawer and provide them to buyer-agents at the time of showings. They keep tabs on everybody who has been through the building, and require you to show ID and leave a business card when you ask for the key.
At the other end of the spectrum, there are buildings that won’t allow keys at concierge, won’t allow lockboxes at the front desk, won’t allow lockboxes in the stairwells, and won’t allow lockboxes anywhere on the property. I’ve seen property management physically cut lockboxes off the railings or posts adjacent to the condo grounds!
So why all the hate?
How about some love?
Why is a condo board, via property management and the security/concierge, trying to make it so hard for prospective buyers to view units that are for sale?
People are going to gain access one way or another, so why not make it easy? The easier it is, the more likely units will sell. And the more units that sell with ease, the higher the prices will be!
Shouldn’t this be the goal of any board of directors – to maintain property values and help condo units to appreciate in value?
Why is it that many condo boards are making it intentionally difficult for sellers to sell?
I was at 60 St. Clair West last week and the concierge told me “Keys are not allowed on site.” So I asked him where the lockbox “panel” was located, and he told me that he wasn’t at liberty to say. I found the lockbox panel, outside, against the wall, and I got the key myself. I went back inside and told the concierge, “Just for future reference in case anybody asks – the panel is at the side door on the wall.” He then went on to tell me that he knew that, but he wasn’t allowed to tell me. He has been instructed by the board to “refrain from any involvement with regards to keys.”
Really?
So he was being intentionally unhelpful. He sent me on a wild goose chase – running around outside, looking for a lockbox panel that he knew damn well where it was!
I just don’t understand.
2) Open Houses
My poor, poor friend Jen had a miserable experience on the weekend while she ran an open house at a condominium full of golden oldies.
Many condos have open house “policies,” but few enforce them with the threat of police and the subsequent blacklisting of a real estate agent.
At a typical condominium, you can put a small piece of paper next to the buzzer that says “Open House Unit 233 – Please Buzz 1025.” Then you can let people inside, and they can come up to the unit to have a look.
Does this open the door to security issues? Of course it does.
But I’m not one of those people who lives my life in fear that I’m going to be brutally murdered at any minute. If some happy couple comes into my building and wants to go see an open house, I’m not under the automatic assumption that it’s just a clever rouse to gain access to the building and rob and kill people.
Regardless, some buildings have instituted a “by appointment only” style of open house whereby the agent can sit in the lobby next to an “OPEN HOUSE” sign and accompany prospective buyers up to the unit.
Then, there is the extreme.
There are some buildings where they have a hard-and-fast “no open houses of any kind” rule, like where my friend Jen was last weekend.
Jen sat quietly in the lobby, waiting for people to come inside, and about a dozen residents complained to the concierge, who was urged to “get up and do something.” They tried to argue that she wasn’t even allowed to place her signs on the sidewalk, even though it was city property.
For the record – every person that complained was about 65 years old or more.
Why all the fuss?
If Jen wants to physically escort somebody up to the unit, how is that an issue? Why is that an issue?
And if the listing agent AND the seller him or herself wanted to accompany people up to the unit, how can any concierge or condo board try and tell the resident that he or she isn’t allowed?
It makes no sense.
I have no clue why some condo boards work so hard to prohibit the sale of condominium units, when all they’re doing is supressing the market values of their own assets!
3) Limited Access to Common Spaces
Here’s a story…
Last week, I had a client in from out of town for just one day to find a place to rent.
We went to the new Murano building at 37 Grosvenor and marvelled at the sleek glass tower and the impressive finishes. Even more impressive, however, were the amenities in the building – a fully-equipped gym, pool, party deck with BBQ’s, and all the bells and whistles that come with a large-scale luxury condo built in the past two years.
But when we asked concierge if we could “have a quick peek” at the amenities, they not only told us that it was out of the question, but they were rude, and asked us to leave if we were finished in the unit itself.
We then went down the street to 25 Grenville, which is a 20-30 year old building, where the concierge there actually handed us a “courtesy key” to the amenities and allowed us to explore on our own.
Guess which building my client rented in?
There’s something to be said for the overall impression of a building, and if your only experience with the people that work there – the same people that you’ll see every single day – is negative, and those people are rude and unwelcoming, then chances are, you’ll move on.
If I had a client who was looking to purchase a $700,000 condo at Residences of College Park, do you think that I would advise him or her to do so without viewing the gym, pool, movie theatre, virtual golf, party room, and BBQ area? No, of course not.
So why does the board of directors and the property management company make it tougher to gain access to condo amenities than it is to get into the VIP section of whatever stupid/popular/it-girl nightclub is currently “all that” in Toronto’s King West?
I don’t understand.
Would you buy a car without looking under the hood to make sure there’s an engine?
How can all these condo boards be so short-sighted?
And before you jump in and say that it’s the fault of property management and/or concierge, just consider that it begins and ends with the board. They hire property management, and property management has rules and regulations in place that can be changed with a simple wave of the board’s wand.
When the president of your condo’s board of directors goes to sell his condo, do you think he’ll be okay with the “no public open house” policy? Do you think he’ll want residents to see the outdoor pool and the state of the art gym? Do you think he’ll want the key to his unit readily available at concierge? Or will he be okay with agents having to pick it up at a real estate brokerage two blocks away, anytime before they close at 8PM; or 5PM on weekends?
If you’ve never investigated your condo’s policies on these matters, perhaps your next A.G.M. would be a good time to do so…
Anonymous
at 7:21 am
Hey David,
I sit on the board at my condo and although I agree with you that some of the rules that are passed are ridiculous, sometimes we have to do so because there are residents that complain about everything under the sun!
We had a resident accuse the property manager and superintendent of stealing her dishes since they were the only ones who had access to the unit… I find that unbelievable.
And then you have those residents who complain about following security protocol like abusing overnight pass privileges or not getting one at all, and those that swear at security and whine when things don’t go their way.
It’s a tough and thankless job, and some things that are passed may sound ridiculous, anal, and inflexible, but sometimes we have to to avoid setting a precedent or avoid being accused of “discrimination” or “favourtism” for or against a particular individual.
For the record, I’m quite young and I don’t fall within your demographic of board members 😀
Joe Q.
at 8:01 am
Weird. People who buy into an area (house or condo) where there is a very high rate of turnover should expect a lot of RE traffic.
Moonbeam
at 9:05 am
Wow — what an eye-opener! I just assumed there was a universal system in place for real estate agents to conduct their 2-hour open houses or to gain access to properties for showings…. Never knew about these obstacles!!
Ralph Cramdown
at 11:34 am
I agree with most of your points regarding shortsighted access policies. Maybe a good idea in a down market when you don’t want newer, lower comps, but…
As for item one, you should really be ragging on your fellow agents. Vendor agent’s instructions re lockbox shouldn’t involve an easter egg hunt, should they?
I was renting a unit on The Esplanade a number of years ago. Came time to move on, and I set a move out date with the amateur landlord, booked the truck, booked the friends. THEN the landlord told me she wanted us out by noon. I instructed the concierge that we had possession until noon, and the landlord did not, so she was not to be allowed in. She was pretty forsted when she finally got to see me at ‘high’ noon, but at least I got the truck loaded in peace.
George
at 11:51 am
“I believe that many boards are made up of senior citizens who have nothing better to do with their time.”
This was certainly the case on my condo’s board, up until last week when we elected four new members in the 30-40 age range. A group of mostly seniors is not a fair representation of most condos, so I agree with you that it is problematic for a board. Thankfully, we changed that. We now have a board who cares about market value and the selling process because they will actually use that process some day.
Our old board was also making decisions that were unfair to new owners, especially with respect to the use of surplus maintenance fees. “We can’t spend more this year than we did last year because it would unfairly benefit new owners at the expense of old owners who have been paying fees for years.” Ridiculous statements like that were far too common.
Sam
at 12:48 pm
Yeah -serving on a board is clearly thankless…but also, unfortunately, the people who are motivated to do it tend to be busy-bodies, control-freaks, and retired people…Not in all cases, of course (sometimes they are smart, practical people who see that a level-head is necessary on the board).
@Anon 7:21 who sits on a board -I empathize with the crazy demands/requests you must get. I attended my condo’s AGM for the first time and I was immediately dumbstruck: “Who are these people?” I thought. They did not match the demographic of the majority of the people I see in hallways or using the amenities. As each of them began to raise questions or comments, it became clear that they, too, were the busy-bodies and control freaks who represent less than 25% of the owners. “Can we install gates on the turnaround? I’m tired of cars driving in just to make a U-turn.”…”I think we should relocate the garbage shutes”…”As a resident, i shouldn’t have to wait for a visitor to get into the garage, we should institute a right-of-way policy.”
David Fleming
at 1:13 pm
My building recently REDUCED the capacity of our party room from 75 to 50.
A few Halloween’s ago, my friend had a party with about 250 of his closest Eastern European buddies. They LOVE to be loud……think Dan Ackroyd and Steve Martin from SNL – “We’re two wild and caaaraaazy guys!”
I think the new policy is ridiculous, but I’m not on the Board, nor did I attend the last AGM, so unfortunately I don’t have a leg to stand on.
Dale
at 2:49 pm
I think every condo owner should sit on the Board at one time or another. It’s a real eye opener. I agree that many BODs seem to be comprised of older people with too much time on their hands. But then some residents could try the patience of Job. I did it for a year and that was long enough.
You struck a nerve with the lockbox issue. I work with clients that are in town for a limited time, want to see numerous properties and need to make decisions fast. We don’t have time to be looking for keys or worse yet, picking up keys from Broker offices that are sometimes a 10 minute drive away. (In this particular case, it was the Listing Agent, who wanted “control” over the key… guess which units we don’t usually see?)
Kudos to one of my clients that actually said to me: “forget it, I don’t have time to f*** around waiting for you to pick up keys somewhere else. If they aren’t on the property, inside – don’t waste my time… move on!”.
My favorite is the one where you MUST show your Real Estate “license” to gain access to the key. My clients, after seeing the piddly piece of paper we’re issued, instead of a proper official looking card, always ask “THATS your license?”
110 Charles is a laugh. I have a photo of it somewhere but I’m sure you’ve seen the big board in back of the lot next to another construction site with dozens of lockboxes strung up. Many of which don’t have anything identifying them. This is in addition to some attached to a wire wrapped around a telephone pole on the other side of the building. So you’re out there in torrential rain, wind and/or snow, trying to find the right box among dozens – so you can show a property.
Realtors aren’t completely blameless for some of the weird rules that come to be. I live in a townhouse with condo elements and a Realtor pounded his open house direction sign into my garden – without even asking me for permission. (I was home) Another jumped the front gate when he discovered he didn’t have (or feel the need) for the access code to get in to show. “It’s okay buddy, I’m a Real Estate Agent!” Like that makes it okay somehow. Or Realtors that take off with a key for Common element access and then never return it. He was “big” with lots of business in that building and I guess he felt entitled to a key of his own. Shortly afterwards, no Agent could gain access to show any common areas.
I agree with you about 25 Grenville. Nice building with great staff on the front desk. Very accommodating.
Jim
at 9:09 am
Wow, no time to wait “10 minutes” to get a key?!! Agents need to remember who they are working for and accept reaponsibility.
Mila
at 3:14 pm
You may not get a “thanks” being on the board, but you get to act and can “manipulate” the rest of the board to implement the changes YOU want 😉
so its better than thanks 🙂
john
at 4:47 am
Hilarious…. http://i.imgur.com/Qg42i.jpg
Rafal
at 11:15 am
Yes. Some boards are pretty ridiculous. Even when a majority vote is made, some boards will fight the vote. They just like to feel in power.
This will continue until we have a younger generation joining these boards. Bringing in fresh ideas, resolving problems quickly, and actually opening up a communication line with their residents.
Yes, a lot of residents complain. But that is because they get no answers. If one person complained, another complained, and you quickly address the issue as a board, notify all residents of the decision/outcome, then people will have their piece.
You as a board have to be social and understanding, you can’t be a 70 year old person that wants their way all the time. You are not a kid, but a responsible homeowner. Times change and members on the boards have to change as well. Hard to convince the older generation though…
I’ve been on the board for many years now. Took on many positions and responsibilities. And with time, you get fed up with all the complains. Now, we use GeniePad for communication in our building. Residents submit messages to us, and we quickly answer. If someone complains too much, we ask them to join the board and help out, complaining stops. If someone has a request, we quickly make a decision and reply to the resident. If there’s an issue that affects the whole building, we post a message in our forum and people discuss it, give advice, etc. It’s fantastic.
Makes the boards job easier and faster.
aiekon
at 3:12 pm
The board I’m on is diverse in demographic. From the 5 members who make up the board we have one that is in their 70’s, one in their early 40’s, two in their early 30’s, and one in his mid-late twenty’s. This has worked out great for us as we each are able to understand (and deal with) the diverse age brackets of those that live in the building.
Daniel
at 5:03 pm
Having served on two boards at two condos I’ve lived in, I don’t listen to anything that any resident says unless I know he or she personally from attending meetings and making an effort to be more than some anonymous request-giver.
Heather
at 4:35 pm
Wow, I agree kudos to anyone serving on a condominium Board of Directors. You have your work cut out for you!
Just a comment on the lock boxes for realtors and potential buyers, I was recently being taken through a number of units by a realtor in down town Toronto and found the time it took the realtor to go through different doors to attain the lock box was time-consuming and a hassle, Our realtor was like a grasshopper bouncing behind one door and through another.