As with any home, two factors influence its value: the general market and improvements you’ve made. A well-kept yard, flowers and other items give a house what realtors call curb appeal. But when it comes to condominiums, owners are at the mercy of their board and management company for curb appeal.
If someone else is responsible for that work, how do you maximize the investment in your condo? The answer to the question is easy and actually involves no cost to you. Get involved on the board of managers!

The board is the owner organization that runs the building. In most cases, actual operation of the property is left to a management company hired to look after the many aspects of having a home—landscaping in the summer, snow clearing in the winter, repair and maintenance of the building, and so on. One of the board’s most important functions is to determine the amount of your monthly condo fees.

If you think about it, a condo board is similar to local government. A city council may run the whole city, while your community association sets conditions in the neighbourhood. But the condo board actually runs your home.

Most people who buy condos are first-time condo owners—many of whom lack understanding of how condo living differs from renting or owning a house. In the case of a condominium, it means many of your neighbours fail when it comes to really appreciating the level of responsibility that goes with condo living.
What’s involved with being a condo board member? Other than a monthly meeting for an hour or two with some of your neighbours, there’s little else. (If it means anything, board meetings are a great time to catch up on local gossip.) The challenges for the board are setting the annual budget and overseeing the management company.

Condominiums usually hire a management company, in keeping with that carefree living appeal to buyers.  But the board’s relationship with the management company can often be a challenge, in itself. Sometimes it’s a tug-of-war that involves a strong board having to assert itself with the management company. A weak board that follows blindly and never questions the management company can also be a negative in a condominium.

One of the key roles of the management company is to keep the board apprised of what is going on with the building or buildings. Remember, regardless of when a building or complex was built, it’s going to begin deteriorating at some point, unless your unit is in one of the Egyptian Pyramids.

Alberta law now requires condominiums to establish and maintain a reserve fund, and also conduct periodic reserve fund studies.  A reserve fund, built from a portion of all owners’ condo fees, is an account to pay for long-term maintenance of the building. The study is a professional assessment of the current state of the building with a forecast for repairs and maintenance in the coming years.

If you are still searching for a condominium and your interest is in an existing building, you want to look at the reserve fund and the latest reserve fund study to get an idea of what to expect as an owner. Ignoring that step means you could be in for a nasty surprise.

Take the example of a southwest Calgary condo complex. Made up of a series of duplex units with a large common area, the development was built before the requirement for a reserve fund. In 2004-05 the condo board became concerned about the building roofs. It arranged an assessment, and the bad news was that the time had come to replace the roofs on all the buildings. Without a reserve fund, each owner had to pony up to replace the roof of his or her unit—$12,000 in cash! Forget about instalments.

Board members are in the same boat as other owners, but being on the board gives you a role in assuring the building is being properly managed. Managing means overseeing the big things and the little things, too.

Let’s go back to that concept of maximizing your investment. Remember curb appeal? Look at the case of an Edmonton condo with an open-air concourse.
Other than a few planters installed by the builder the areas were bare, cold, and rather inhospitable. Looking over the building for a client preparing to sell, the first comment by a real estate agent was that a few benches and some potted plants would have added warmth and hospitality to the building. The management company should have suggested enhancements to the property, but in this case, a unit owner actually proposed a few benches. Cost about $80 each. The board turned a thumbs-down on the idea because it would “encourage loitering.”  Imagine a building that looks like people live there!

This example illustrates first, poor leadership by the management company and second, a lack of vision and understanding by board members. Unfortunately many owners avoid getting involved in the most important and immediate factor influencing their home.  Often it’s a challenge to get enough owners out for an annual condominium meeting.

Some owners, precious few, prefer to just sign the cheque for monthly condo fees without much thought. Then, when the cheques get too big, the result is often squawks or, more likely, “for sale” signs.

Condo living can be carefree, but often that takes a little involvement.