CAI is hosting an in-depth webinar on this topic on the upcoming HOALive webinar on Tuesday, August 5 at 2pm ET. Registration is still open! Secure your spot today: https://bit.ly/4fe2hCY
Corporate ownership of high-rise condo units is an increasingly prevalent issue that can impact the health and well-being of condo communities. Unlike individual residents, corporations lack personal investment in the neighborhood, and their presence often leads to a breakdown in community cohesion.
These corporate condo owners don’t participate in social events, volunteer for committees, or contribute to the upkeep of shared spaces, leaving a void in civic engagement that is vital to healthy condo governance. Understanding the implications of this trend is essential for residents and associations hoping to maintain a strong, positive neighborhood atmosphere.
Is Corporate Condo Ownership Bad?
It certainly can be. It’s possible there are corporate owners who share a common interest with live-in residents, but the majority of businesses that buy condo units are looking for investment and profit opportunities, not the chance to be a good neighbor.
They’re Disengaged
Unlike individual owners, corporate investors often do not have a personal connection to the community. They won't participate in social events, volunteer for committees, or engage in the everyday civic responsibilities that help maintain a vibrant and cohesive condo environment. This lack of involvement can weaken the democratic governance that is central to condo associations.
They Can Hoard Power
If corporations purchase multiple units, their voting power on condo boards may increase, allowing them to influence community decisions in ways that deprioritize community needs. What was once a community-driven environment becomes one dominated by absentee landlords focused primarily on profit.
They Invite Unruly Guests
Another consequence of increased corporate ownership is the rise in tenant turnover. Corporate owners often operate units as short-term rentals or investment properties with less rigorous tenant screening practices. The result can be more frequent rule violations, increased noise, and a general decline in building maintenance. These changes can impact residents’ quality of life and the overall stability of the community.
They May Not Pay
While corporate owners can sometimes offer financial reliability through standardized leases and consistent payments, many are unfamiliar with the obligations that come with condo living, such as timely dues payments and participation in association governance. This unfamiliarity can lead to higher rates of delinquency and financial uncertainty for the community.
What Can You Do?
Condo sales are on the rise. As more condo units come up for sale, it’s important for condo Board members to evaluate where your community currently stands on who can purchase units, and be willing to implement change.
To learn more about safeguarding your community, register for the HOALive webinar series on Tuesday, August 5 at 2pm ET: https://bit.ly/4fe2hCY
