Can an HOA or Condo Association own a for profit business? I think the real question is - if the condo association or HOA had a way to make money, how would the profits be distributed? Would profits go to the condo association's condo reserve, to an operating account and be applied to bills or a reduction in condo fees? Another option would be to form a LLC and make condo association members shareholders akin to their condo association ownership shares and have profits distributed directly to the condo owners to offset condo fees.
Here are 2 businesses that condo associations possible make money at.
- Telecommunications - The Big 3 - Voice, Internet and Video. Plenty of HOAs and Condo Associations become resellers, offering services from either the cable company or sattellite. Most service providers have reseller programs in place already and handle the administration of it.
- Event Rentals - If your condo building is in the city with a great, large common area roofdeck or your HOA has a function house or beautiful grounds, your condo association can rent it out for events.
We have thought about renting our our condo association's roofdeck for functions and are still considering it. Due to the size of the deck and city views it offers, we believe we can possible get thousands of dollars. The issue we are looking into is condo association insurance and liability.
Has anyone else had any condo association for profit experiences?
