Condo Association Management Blog

Does your property manager/president own property in the community?

The basic legal question would be is this person an employee or a volunteer if you are talking about liability. You might want to check with your condo liability carrier to get that answered first. Then check your by laws to see if you are allowed to pay your board members for their services.  
 
I hold a property management certification in Ohio and am currently the board president, having been drafted to fill a recent unexpected vacancy. I have not been active on the board since obtaining my real estate license, about 5 years ago, due what I perceive as both ethical and practical issues.  
 
I made a personal decision that with my new knowledge I could sometimes accomplish more from the floor than from the board table where I would be held to a higher standard and every action would be over scrutinized. On the other side of that table I am just another homeowner who is well armed with educated information.  
 
I do feel there would be a moral conflict of interest in serving an association as both an employee and a volunteer and would never put myself in that position. Ideally all property managers act in their associations' best interest all of the time. But I see the possibility for frequent conflict with a decision one might make differently if coming strictly from the viewpoint of a homeowner. The thought of that gives me a headache and I want my home to be a place of peace. 
 
I would not so much be concerned about a professional doing anything that would jeopardize both license and reputation. However,if he is to remain in this dual role, the board would be wise to be diligent in their oversight of his activities. It is inevitable that questions will be rightfully raised by owners and the board as a whole will need to account for "their employee's" behavior and not just the actions of their president. 
 
Though some people in my 100 unit high rise are less than delighted that I've been plopped in to straighten out a gigantic mess made by misguided but well meaning amateurs, most seem to feel comforted that someone who knows what they're doing is at the head of the table. Working with our also new property management has been easier for me than it would have been for any other board member and because of this, we have accomplished a lot in a short period of time.  
 
The association has me for free, but not forever. I will go back to being an educated owner just as soon as elections are held in February. 
 
 
 

It may be from state to state, but most State Condo Acts will have a 'conflict of interest' clause. This is similar to hiring an owner or his/her company for any contract services. The difference will be in the amount of interest that owner has in the company providing the services. You may need legal advice from your own state. 

Audrey I applaud you for your eloquently stated post.

Audrey I agree with you 100%. If Board Presidents and all management companies were 100% honest, than it wouldn't make a difference. We have a property manager who is married to the owner of the management company and there is a habit of replacing items that do not have to be replaced and our HOA knows of this and may be even be splitting profits as no one seems to know how much our condo was billed for items that were replaced. The husband and wife team want to keep it a secret that they are married, and they made up a story that they planted the rumor to see who is creditable in our condo. How's that for a great excuse. The husband actually told someone who lived in the condo all about his marriage but he is old and probably forgot. I think no reason is good enough to deny your wife or husband but possibly greed is good enough for these two.

Yes, he does in fact own a condo within the same community. Thanks.

While this may be legal there is no doubt that a "shadow" of an impropriety exists. That is not to say that it is improper but the suggestion can be made. The Board President/Manager may be doing an excellent job and be as honest as Abraham Lincoln but the honorable thing to do would be for him do do would be to resign the position of board president and wear only one hat at a time.

There is absolutely a conflict of interest. How can there be checks and balances if nobody is watching the store.