If you’re thinking about buying your first home, chances are good that your purchase will be a condominium or townhouse.
And for good reasons: one is that there are a lot of them in the residential marketplace. Another is that major expenses, perhaps for roof replacement and swimming pool maintenance, are shared with other owners.
“Denser housing often means more affordable housing,” said Richard Thompson, a Portland, Ore., consultant and founder of the regenesis.net Web site for homeowner associations.
Living in a condominium or town home also means living in a homeowner association. It’s a different lifestyle than renting an apartment or owning a single-family home, one that many people enjoy. But it’s not for everybody.
“The biggest difference is that you’re taking ownership in an entire community, not just your unit,” said Don Kekstadt, vice president of property management for Lieberman Management Services in Buffalo Grove.
“You have to be aware of the security, the aesthetics, the maintenance and the operation of that community. All of a sudden, you’re picking up papers outside your unit where you never thought about it before.”
Brad Trojanowski, 33, who bought his unit in the Timber Ridge Condominium Association in Carol Stream nine years ago, agrees.
“You have more of a vested interest if you own something than if you’re renting,” he said. “You’re always on the edge if you’re renting. You know you can get out in a year.”
Before moving into an association, consider the following points:
– You’re in charge of interior upkeep. The fun part is that you have more freedom to decorate than when you were renting or living with Mom and Dad. But if anything breaks down, that’s your job, too.
“A lot of people who buy their first property in a condo, especially if it’s a high-rise, think it’s the same as renting an apartment,” said association attorney Kerry Bartell of Kovitz Shifrin Nesbit in Buffalo Grove and Chicago.
“They think they can call the maintenance man or the board and say come fix my toilet. But anything that happens inside the unit is yours.”
According to Kekstadt, “Menard’s becomes your favorite getaway. It’s a whole new world of shopping.”
Even though you own the unit, the rules might dictate the types of window and floor coverings, or what items you can place on your balcony.
The association usually takes care of outside maintenance.
– Neighbors are people, too. Association life requires consideration for other residents with whom you are sharing walls, garages and hallways, said Kekstadt.
“When you’re playing music or going out in the yard, your backyard is a lot of other people’s backyard,” he said.
Trojanowski and his girlfriend, Christine Kiessling, said they enjoy the neighborliness of condominium life.
“I think people are a little more apprehensive about developing long-term relationships when they are renting because they could be gone any time,” said Kiessling. “In a condo, people seem to look out for each other more.
“Owners seem more close-knit, maybe because you’re all in the same boat,” Trojanowski said. “They don’t let their kids climb on the trees and they throw their garbage in the right spot.”
– Rules are made to be followed. Associations are run by volunteer boards, who pass rules and regulations meant to promote harmony and uniformity. You can be fined if you don’t uphold them.
The most controversial rules are usually those that affect a resident’s choice of lifestyle, said Thompson. Be sure to read the rules to see if you can live with them before you agree to buy that cute little condo overlooking a duck pond.
Hire legal counsel experienced in association matters rather than relying on a real estate agent to decipher a community’s governing documents, he advised.
Teresa Zembal, 32, made sure that the association where she bought her first condo 3 1/2 years ago allowed dogs. It wasn’t until after she moved in that she learned her beloved pet exceeded the weight limit by 20 pounds.
“It became an issue for me,” she said. “I talked to neighbors and we went to meetings and went around to see who had a problem with big dogs.
“I think a little dog can make as much noise as a big dog. We got them to change it, and I was there to support that.”
Sadly, Zembal had to put her dog down. But before she moved into the University Village Loft Condominium Association a year ago, she took a closer look at the pet rules in anticipation of getting another dog.
Parking can be a big issue for young singles whose friends visit frequently, said Bartell.
“If you’ve got 10 people coming over at once, where are those cars going?” she said. “How many parking spaces can you use, and how long can visitor cars stay? Parking is often limited, and people get into trouble because they don’t know what the rules are.”
– Stay current on your assessments. Associations charge monthly assessments to cover exterior building maintenance, landscaping, snow removal and possibly some utilities. If they run short, perhaps because of a spike in insurance costs or a roof that needs replacing, they’ll go to the owners for more money. If you don’t pay, you can be fined or even evicted.
“Give yourself a cushion when setting up your budget,” said Bartell. “One of the biggest differences between owning a condo or townhouse as opposed to a single-family home is that someone else is deciding when to do repairs and replacements to major portions of the building.”
It’s not just older buildings that are prone to unbudgeted expenses, she said.
“With new construction, associations sometimes have special assessments to deal with developer issues,” she said.
“I would say that a majority of the delinquencies we see are where someone buys a new car and new furniture and got into a unit with 3 percent or 5 percent down,” said Kekstadt. “They didn’t plan for assessments to go up, and they have little or no equity so they can’t get a home equity loan to cover them.”
Trojanowski takes the assessments, regular and special, in stride, he said.
“I figure that you’re going to pay at least 200 bucks a month for the maintenance of a house,” he said. “Over 10 years you’re going to have to get a new roof or driveway. It’s a wash as I look at it.”
– Donate your time. Associations depend on owners to serve on boards and committees to perform tasks such as making out a budget or greeting new residents. The job isn’t always fun, but can be rewarding.
Zembal’s current home at University Village is a relatively new development, one that was turned over to the owners by the developer about a year ago. Many policies and procedures have yet to be worked out. Zembal ran for the board and is now serving as the association’s treasurer.
“I feel like I can be a part of it and have first-hand knowledge of what’s going on and bring out my opinions,” she said. “Initially, it’s a lot of work when you’re turning over, but it’s fun to be a part of it.”
“Sometimes younger (board members) want to be everybody’s best friend,” said Bartell. “They don’t want to be the bad guy. Board members have a fiduciary duty to act in the best interests of everybody, not just a few.”
Thompson noted that there is no written obligation for all owners to participate in the governance process, “but there is an element of volunteerism that makes this thing work.
“At the very least, be thankful for your volunteers, as opposed to treating them like the enemy, because they are saving you money most of the time.”
