RHOL.ORG :: Tenant-Screening

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REL wrote: There are certain facts that a Board member or Officer, or a potential one, should know about serving in those positions. Those in the subject positions have certain duties and responsibilities, as well as potential liabilities. I’ll mention some of these issues, but first I'll tell you why you might want to serve in spite of the work and the potential problems. Whether you live in a condo you own or rent out one that you own, the main reason to become involved is to protect your investment. In general, homeowner associations have considerable control over the development in which your unit is located and, for that reason, influence a fair degree the future value of your unit. This influence comes about because of several reasons related to the fact that the association is in control of the development. Although this affects the association as a whole, that is all owners, in practice, it is the Board of Directors that is involved with day-to-day operations. Accordingly, if you want to exert significant influence over the future of your investment, the best way to do so is to be actively involved in the association as a Board member or an Officer. As mentioned above, being a Board member or Officer comes with duties and responsibilities. These duties and responsibilities are defined in the Articles of Incorporation and the By-Laws of the Association. Being a Board member or Officer can also bring liabilities. The potential liabilities of the association are much the same as for any property owner. That is, lawsuits due to personal injury and physical damage or other financial loss caused by negligence or intent of the property owner or his agents, or, in this case, the association. To this must also be added violation of Fair Housing Laws or other actionable discrimination. As for any property owner, the potential for liability can be significantly reduced by following certain procedures. Knowledge: Know and follow the association Articles of Incorporation and By-Laws. Know and follow fair housing laws, state and local laws that govern associations, and the various laws and regulations related to managing the community. Building permits and employee-related laws are in the latter category. Documentation: Keep minutes of Board and membership meetings. Keep records of maintenance request and actions, particularly when related to a possible health and safety issue. Have a proper accounting system in place. Insurance: There are two different issues. First, is be sure that adequate hazard and liability insurance coverage for the development is always maintained in force. Second, have in place adequate errors and omissions insurance that protects Board members and Officers.