The Condo Board of Directors runs the whole community. They have a lot going on, and it’s important that they do what is best for the community and act ethically.

If you’re thinking about running for the condo board or just want to know what’s involved, you’re in the right place. We’re going to go through what the board does, how they’re elected, and what the different roles are. 

What does the Condo Board of Directors do?

The board of directors are elected by the homeowners to run the condominium. They are in charge of managing the condo association. They work with the management company, and if the condo is self-managed, do it themselves. 

They apply the rules fairly, and negotiate successful contracts for maintenance and landscaping. As well as that, they communicate with residents and hold transparent meetings.

Governing Documents & Laws

Each state has there own set of rules and restrictions. For example, in California it’s the Sterling Davis Act, and in Florida its Statues 718, 719,720 depending on the type of ownership. These laws are always changing. In Florida, condominiums of 150 units have to have a website and accessible documents for the residents. They’re now discussing increasing that law to apply to all condos with over 20 units. Condo board members need to keep up with these changes during the many Law Updates that are offered through the state. You can also look up webinars, classes and events that can help you. 

As well as state laws, each condo has a separate set of governing documents. These dictate the specific rules and guidelines within the community. The community’s governing documents are the key to ensure the rights and duties of each resident are fulfilled. All condo board members should be familiar with them and use them to enforce the rules and regulations fairly.

Budgeting and Planning

Financial stability is crucial to the success of an association. As a board of directors, it is up to you to establish a reasonable budget that addresses the requirements and standards of the community.

Overall, many people struggle to think about the future, and community reserves are no different. The immediate desire to upgrade the pool cabanas or install new tennis courts often replaces the need for reserves for future maintenance issues. Reserves serve three main purposes – Emergencies, Deferred Maintenance, and bad debt. In order to get a better handle on your community reserves, you can have a third party conduct a “Reserve Study” to ensure the community is sufficiently funded. 

Building insurance is also another issue that is often overlooked. Every community is required to have insurance. The board of directors, as the legal representative of the community, must always be aware of the insurance’s coverages and keep it up to date.

Condo fees that residents pay should cover maintenance, landscaping and upkeep, and it’s up to the board to ensure that they do.

Organize maintenance

Maintenance is key for all condos. All aspects of the condo need to be checked regularly to make sure that they’re in good working order. That includes amenities, such as pools, tennis courts and gym, elevators, and the roof. As we mentioned above, it’s important to balance the reserves to cover all necessary maintenance and upgrades. As well as covering any unexpected costs such as hurricane damage.

The condo board of directors must exercise due diligence to make sure that contracts for maintenance, landscaping and regular staff are up to date, and that there isn’t a conflict of interest. That means that they need to negotiate to find the best contract and make sure that they are receiving a good rate that fits in their budget. Those documents need to be stored safely so that they can be consulted. We recommend storing them in the cloud so that they can be easily accessed and are safe.

If your condo has a management company, then management normally does this and the board approves the final contract. If that is the case, then the board needs to work closely with management to ensure that the work is satisfactory and in the community’s best interests.

Communication

Communication is the key to an enjoyable community experience. It creates a transparent and inclusive community. The condo board of directors should encourage participation from people outside the board, and listen to owners, tenants, vendors and employees’ opinions and suggestions.

You should be communicating with residents regularly. They need to know when meetings are, and understand why certain decisions are being made. Being transparent and truthful increases resident satisfaction. To help you to communicate more easily, you should look into tools that can help you. Having a website is a good first step to involving residents in their community as you can post important news there. Another idea is to have a monthly newsletter that highlights what’s going on in the community and in the town.

You could also go a step further to have a portal that sends emails, and allows you to create polls for residents to provide their opinions on changes to the community. Some portals allow you to hold virtual meetings and manage maintenance requests in the same communication and management software.

Hold regular meetings

An important part of being on the condo board of directors is organizing and participating in regular meetings. They can be online or in-person, hybrid meetings have been gaining popularity recently. These meetings are essential for the board to make decisions together as a group. As well as that, they residents in the loop about what’s going on in the community and getting their input. Condo meetings require preparation to create an agenda, manage time correctly, type the minutes and getting residents involved. You need to follow the state’s law about correctly notifying residents, calling the meeting and do the right procedure. To find out what that procedure is, you should check your state’s rules, as they vary.

When you have an Annual General Meeting (AGM), the procedure is even more important as you need to reach a quorum. That is the minimum number of owners that are required to hold a vote. Finally, you also need to check who is allowed to vote, as someone who has not paid their dues can’t vote.

Meetings are a key aspect of a board member’s time managing their condo.

How is Condo Board of Directors elected?

 The condo board of directors is elected at an AGM, normally elections are staggered so that not everyone is elected at the same time. Your condo will also have specific rules, and who is eligible to vote and to run for office, you should check your governing documents to find out more about those rules. A board member normally:

• Needs to own a property in the condominium
• Has to live in the property
• Can’t be employed by the condo association
• Mustn’t have a conflict of interest
• Can’t be related to someone on the board
• Need to have paid their dues
• Can’t be bankrupt
• Be at least 18

What are the different positions on the Condo Board of Directors?

Depending on the size of the condo, and how many people you need to run it your condo can have:

• President: Is in charge of the condo if it’s self-managed. They manage meetings and develop policies for approval.
• Vice President: Must step in for the president if necessary, and be their right-hand person. They often intermediate between the board and committees.
• Treasurer: Manage the finances and budgets of the condo association.
• Secretary: Are in charge of the records. They take minutes at meetings and send notices to residents.
• Member at large: Don’t have a fixed role, but may step in where necessary.

Conclusion

A condo’s board of directors is its governing body. They work closely with the management company if there is one. The board also negotiates contracts, ensures documents are filed, and the condo is following its rules and regulations, as well as the state’s laws. The most important duties are managing the budget, communicating with residents, and running condo meetings. If you’d like help sending notices to residents and following meeting procedures, our templates will help. These templates for meeting agendas and minutes help organize your condo meetings and ensure that residents know what is going on.