Sponsor Giving Up Control?
I live in a new construction, 8 unit condo. The first unit closed in Aug 2009 and now all are sold and occupied. The offering plan states that the Sponsor would manage the condo association for the first year, but the Sponsor now says that since he no longer has financial interest in the condo,…
I live in a new construction, 8 unit condo. The first unit closed in Aug 2009 and now all are sold and occupied. The offering plan states that the Sponsor would manage the condo association for the first year, but the Sponsor now says that since he no longer has financial interest in the condo, it’s time for the owners to form a condo board and manage the building.
Does anyone know if this typical/legal? Any advice is appreciated.
thanks
for an 8 unit, you could probably manage it yourself – I rented in a 8 unit coop, and they did everything themselves – down to taking out the trash.
you could probably hire someone to take care of the super duties correctly, and get an accountant to handle the books – it will just take more effort to be on top of the bills, income, etc.
But at least you can sleep at night knowing nothing is amiss
Good luck
Thanks all!
sounds normal. you do not want the sponsor around anyway.
good luck.
We’re in a small (5 unit) self-managed building, for us it also works pretty well. As Johnny points out you can hire people as you need them, and I personally like having a say in all the mgmt decisions. Also to your original query I think generally the sooner the sponsor’s out of the picture the better…
Good points.
Lived in 10 unit self-managed building for long time. Takes work, but 100% transparent and in long run helps keeps costs/maintenance down – and therefore prices up.
Self managed doesn’t mean you do EVERYTHING – we hired accountants but did books ourselves, hired someone to take out garbage and vacuum hallways etc.
Doesn’t work for everyone, but worked for me.
That is up to the owners to decide. How big are these units and the overall property? One or two of you will need to be the book keeper. Etc etc.
A management company or self manage is a toss up for small condos.
chcknmadness — do you think a management company would make sense for an 8 unit condo?
Thanks for your help!
That is normal. In my building, the sponsor was locked in for 2 years, but we were able to boot them after one because they hated dealing with the owners so much. It was a good thing, too, as their bookkeeping was a mess and they failed to manage our funds appropriately.
After they left, we formed our board, hired a managing agent and super, and managed our own funds. We were able to go from nothing in the bank at the time of the handover to a healthy surplus without raising maintenance due to our management – and our excellent managing agent (Elia Malara).