How to Make Condo Boards Successful: The Ultimate Checklist
One of the questions I’m often asked is what makes a condo board successful. I’ve been in the thick of things as President of my condo board, and I’ve spoken to people involved with dozens of other condo boards. From that experience, I’ve compiled the ultimate checklist of best practices for condo boards to make them stand out from the rest. In no particular order, here are my top suggestions:
Introduce sound policies
Aim for a balance of director expertise
Condo boards don’t get to handpick their directors, but every board can strive for a balance of skills and expertise. For example, it can be helpful to have a director that understands the legal side of things and another with a background in financial management or accounting.
Add officers to bring in needed skill sets
Officers do not vote and are not elected, so there is much more freedom with their selection. Once the board is elected, the directors can appoint officers to fill any gaps in expertise. Being an officer for a year or so is also valuable training before becoming a director. Adding officers lightens the overall
Anyone can be on a committee. I’ve seen many condo boards that have created committees for things like organizing social events, looking after gardens, and writing newsletters. Because committee members don’t have to be official board members, this is also a fantastic way to get new people involved. I recommend including a board member or officer on each committee, to liaise between the board and the committee. If this isn’t possible, consider asking the committee chair to attend board meetings whenever an update is required.
Have written job descriptions for director positions
Current or potential directors may not know what is required of a President or a Treasurer. Giving every director a clearly defined role results in a board that understands their respective responsibilities.
Don’t leave positions vacant
Appointing a new director as soon as a position becomes vacant is a good practice. It is not easy to find a new director but the sooner a replacement is appointed the better. There is always a concern that the remaining directors will be overworked (and then also leave the board) because too much is expected of them. Directors are volunteers and are already making a significant time commitment to serve on the board.
Make documents available before being asked
Make all relevant documents available to everyone. I have mentioned this before, and I will keep mentioning it until it becomes common practice. Transparency is key.
Keep corporate records organized and accessible
Condo records – like meeting minutes and financial statements – are crucial to a condo corporation. These records must be organized, up-to-date, and easily accessible to everyone who needs them. Directors must remember to start saving corporate records as soon as they join the board – if they wait until they leave the board, it will be too late.
Practice consistent and reasonable rule enforcement
Commit to proactive maintenance
It pays to be proactive. Maintaining building systems proactively identifies small problems before they becoming giant disasters. Conducting annual inspections of major building systems costs money in the short-term but pays off in the long run. I know of a board of high-rise tower that replaces all the unit furnace filters on an annual basis. Replacing filters improves furnace efficiency and prevents damage to more expensive parts. As the saying goes, an ounce of prevention is worth a pound of cure.
Overall, condo boards should strive for balance, proactivity, and transparency. Having the proper balance of skills and understanding ensures that the board is knowledgeable and able to get the job done. Proactivity and transparency
If you have any questions about this checklist of best practices for condo boards, share them with us on Twitter @BoardSpaceinc #CondoBoardChecklist or our Facebook page.