Every community association has a culture, or personality. Some are social or family-oriented. Some spend money only on essentials while others replace carpeting every five years whether needed or not.
“Some associations are very strict,” said property manager Dixie Hahn, president of All the Difference, a property management firm in Western Springs. “I wouldn’t say that’s good or bad. It just means the board takes its responsibilities very seriously and the homeowners want to protect things.”
The trick, when buying into an association, is finding one with a culture you can comfortably live with. No matter how great the floor plan or dramatic the view, a unit in a building where residents frequently party may not be the best choice if you prefer serenity.
Jeff Hufford wishes he had done more research before he and his wife, Annie, bought their condo in a 10-unit association last fall in Chicago’s Lakeview neighborhood. Twenty-somethings, they are the youngest owners in the building by at least a decade.
“We’re pretty easy-going,” he said. “I didn’t know how far some of these rules can go and that someone other than us can have a say in how our blinds are displayed to the outside world. Some of the things they talk about seem pretty petty.” To keep expenses down, the association is self-managed. That’s fine with Hufford, who is willing to share in the chores.
“Then they talk about what if they don’t like the way someone does it,” he said. “Some of their meetings last six hours. I don’t know if I would do this again.”
How, then, do you make a good match before you sign a contract? Part of the answer lies in working with a real estate agent who is familiar with the associations you are considering. The professionals have their limitations, however. They don’t want to be accused of steering or violating open-housing laws.
“We really can’t discuss resident profiles of different buildings,” said broker Dennis Eng of The Habitat Co. in Lincoln Park. “We’re not allowed to say if a building is kid-friendly or not kid-friendly.”
Still, there’s plenty you can pick up if you know what to look for.
Take in the surroundings
Study the physical environment. When touring the property or when visiting friends who live in a prospective building or complex, read bulletin boards to see whether the announcements are pleasant or dreary in tone. Note whether the unit doors are dressed with wreaths, floor mats and other decorative items. If you feel like you are in a hotel, the association may frown on personal expression.
“We usually suggest buyers sit in the lobby for an hour or so,” said Eng. “They can see how the building is maintained, who some of the residents are, and watch the staff as they are working through the building.”
Look at the amenities, said John Kmiecik, president of the Illinois Association of Realtors and owner of Century 21 Kmiecik Realtors in Chicago.
“If you go into a development with a pool and tennis courts and maybe a health club and mini-bar for coffee and rolls, that tells you there is a pretty active society,” he said. “There are people who use these facilities and are willing to pay for them.”
On the other hand, a building whose only frills are elevators and underground parking might have a more conservative crowd, he said.
“Buildings with larger units will more likely have children,” said Eng. “Buildings with only one or two bedrooms typically have fewer children because there isn’t as much room for them.”
If the association has more than one building, tour all of them, said Barbara Mundt, an agent with Callero & Catino Realty in Niles.
“If they are not all decorated the same, probably there are different associations under a master association,” she said. “Sometimes you’ll see that one association is more willing to spend money than others. You can go in one building and see red-flocked wallpaper and old carpeting and another building will be decorated in modern colors.”
The parking facility, which you should visit day and night and weekday and weekend, also offers clues.
“If you see a lot of trucks or trailers or recreational vehicles, you know they don’t have the generally common rules about what can be parked in the parking lot,” Mundt said. “That’s convenient for people who have those things, but many people don’t want to look out on a panel truck that says somebody’s plumbing service.”
“A lot of single women buy condos, and for them, security issues are big,” said Rich Thompson, an association consultant in Portland, Ore., and founder of regenesis.net, an educational, subscription Web site for residents and managers that deals with homeowner associations.
“How much room is there for parking? How well is it lit? If you’re a social person, the availability of guest parking is important.”
The paper work
Get the documents. Section 22.1 of the Illinois Condominium Property Act says buyers can ask the seller for the association’s declaration, rules, budget, reserve amount, statements as to planned capital expenses and litigation, and other information. Most of it’s difficult to read, but there are key indicators.
In the budget, the line items show how money is being spent. A large amount in the miscellaneous category might mean the board isn’t as organized as it could be. Allocations for social activities, flower beds, newsletter and Web site show emphasis on community.
“Flat out, I wouldn’t buy into any association that does not have a reserve study,” Thompson said, referring to a major study conducted to identify present and future costs and needs and how to fund them. “If they don’t have one, there is no way for the board to properly plan and set aside reserves in a systematic way. Special assessments could come along at any time. Maybe I’d buy into a brand new place [without a reserve study] if I knew for sure I’d be getting out in five years.”
To get an idea of how litigious the association is, a buyer can get a statement of pending litigation.
Of all the documents, the rules and regulations are the most telling, said attorney Allan Goldberg of Arnstein & Lehr in Chicago.
“The rules and regulations are where you will find the spirit of the community by virtue of the issues of importance,” he said. “For example, there may be provisions in rules which are heavily oriented toward pet care, pet walking, pet refuse, which show a perception of pets causing higher annual maintenance of the common areas.”
Rules oriented toward use of the party room speak to concerns of cleanliness and respect for common areas, he said.
“Get past copies of the newsletters,” he said. “That’s where you find out what’s going on in the community and what is considered officially important. You can get a sense of how close people are. Do they celebrate birthdays? Do they have gatherings around holiday time?”
Gab and listen
Talk to people. In some associations, board members are willing to talk to prospective residents. Thompson suggests knocking on doors or stopping people in hallways.
“Resident members typically don’t have a lot of reluctance to speak if someone says I’m looking at your neighborhood and want to be a good neighbor,” he said. “Ask if there are any financial or maintenance-related issues you need to be prepared for.”
“Homeowners will tell you more than sometimes you want to know,” Hahn said with a chuckle.
Property managers may or may not be receptive to inquiries, she said.
“Most will, in my opinion, spend a little time,” she said. “I wouldn’t spend an hour. Most people have just a couple or three questions. They can ask us about special assessments and factual things. If they ask about things that I consider subjective, I’ll say I’d rather not comment.”
Local police and building departments can provide information about crime and code violations, she said.
Ask to attend a board meeting, said Bill Alston, broker-owner of Callero & Catino Realty in Niles.
An off-duty police officer hired to keep the peace is not a good sign, he said. But don’t worry if only a few people are in attendance. It doesn’t necessarily reflect apathy.
“People don’t have to show up when they have confidence in the people running the show,” he said.
