Tag: condo HOA

Condo Board Meeting Rules — What You Need to Know

Posted on by LLCR Staff

Whether you’re planning on attending or running a condo board meeting, it’s crucial to have a grip on the rules.

Don’t worry—the Luxury Living team is here to break down everything you need to know about condo meeting rules.

Overview of Condo Board Meeting Rules

Condo board meetings designate a time and space for the association’s board of directors to manage the day-to-day administration of the condo association, such as the rules, regulations, and maintenance of housing development.

While specific condo board meeting rules depend on the community’s bylaws, there are standard expectations for any board meeting.

Condo board meetings must remain open to the members of the association unless it is a closed or “executive” meeting. These exclusive meetings are occasionally arranged to discuss more confidential matters, such as a legal issue or a homeowner’s financial status. 

Condo boards are always required to notify association members of meetings, often between seven and thirty days in advance. The notice should include an agenda of topics to be discussed.

During the board meeting, the agenda needs to be followed unless the governing documents provide an open forum during which new members may raise new business.

A member of the board is also required to keep minutes of each meeting and make those minutes available to HOA members.

Know What You Can Ask, Bring Up, Etc.

If you have an upcoming board meeting to attend, it’s helpful to know what’s appropriate to discuss beforehand.

One of the most important rules of thumb is sticking to the agenda. Make sure your questions and comments are relevant to the current discussion unless you’re provided an open forum at the end of the meeting.

Also, keep in mind that the board meeting is focused on more specific, day-to-day matters. if you have any concerns dealing with broader issues, such as rules of the association, or the annual budget, you can bring up these topics at the condo membership meeting.

Additional Resources 

If you’re an existing member of a condo association, don’t hesitate to reach out directly to your board for more clarity regarding the condo board meeting rules. You can also examine the association’s bylaws yourself if you feel comfortable.

A licensed broker is another excellent resource if you have questions or you’re still looking for the right condo. Connect with our experienced team today!

What You Need to Know About a Condo Membership Meeting

Posted on by LLCR Staff

Whether you own a condo or you’re still searching, chances are you’ll eventually be invited to attend a condo membership meeting.

The Luxury Living Team is here to share everything you need to know about these meetings beforehand.

Overview of a Condo Membership Meeting

When you purchase a condo, you are also expected to pay regular dues which grants you membership into the condo association.

This association is run by an elected board of directors, which handles the maintenance and repair of common areas, disputing among unit owners, and enforcement of rules and regulations, and condominium fees.

While the board manages these community issues, condo unit owners still have a voice in the operations and the choice in board members. Unit owners have a chance to use this voice at condo membership meetings. 

The primary goal of this meeting is to address significant topics that affect the community at large. For example, a membership meeting is necessary when adopting the annual budget, enacting rules of the association, amending the declaration of bylaws, and conducting board elections.

The Illinois condominium statute and the bylaws of each condominium should indicate when a membership meeting is required. The condo association also needs to notify all unit owners of the meeting date and agenda far enough in advance. 

Differences Between a Condo Board and Membership Meeting

When understanding condo membership meetings, it’s important to distinguish them from condo board meetings.

While membership meetings are intended for all association members to discuss major issues that affect the entire community, board meetings are in place for the board to discuss more specific matters.

Condo board meetings allocate regular time for the board to manage the day-to-day administration of the condo association, such as the rules, regulations, and maintenance of housing development.

Although board meetings are designated for a conversation among the association’s elected board, homeowners are still allowed to be present during the meetings. The only exception exists if it is a closed or “executive” meeting. These exclusive meetings are occasionally arranged to discuss more confidential matters, such as a legal issue or a homeowner’s financial status.

Additional Resources

If you’re already a member of an association, don’t hesitate to reach out directly to your board for more clarity regarding the condo membership meetings. You can also find specific guidelines and insight within your association’s bylaws.

A licensed broker is another great resource if you have questions and you’re still looking for the right condo. Connect with our experienced team today!

What Needs to Be on Your HOA Annual Meeting Checklist

Posted on by LLCR Staff

Annual Homeowner Association (HOA) meetings are crucial to keeping the community informed and involved. This delegated time provides residents the opportunity to come together to discuss and vote on important matters.

It’s important to create and follow an HOA annual meeting checklist to execute a successful meeting that covers all the necessary topics.

Overview of What Must be on the Checklist 

The primary goal of an annual HOA meeting is to address significant topics that affect the community at large.

Monthly board meetings address smaller HOA matters that generally deal with the day-to-day administration of the association.

When preparing for the annual HOA meeting, consider including the following items in your meeting checklist:

  • Major milestones or successes among the board or community
  • Presentations by the board, its committees, and professionals involved in community business like accountants, contractors, and vendors
  • Announcements about staff or management changes
  • Proposals requiring residents’ approval
  • Approval of the annual budget

Additional Things you may Want to Consider 

Successful annual HOA meetings also involve thorough planning and preparation.

As you begin organizing the meeting, keep these logistics in mind:

  • Date: When choosing a suitable time for your annual HOA meeting, pick a date and time that is most convenient for your residents, like after normal work hours or on the weekends. It’s also crucial you give residents enough time to pencil in the meeting. Most HOAs have the annual meeting on the calendar at least six to eight months in advance.
  • Location: Of course, you want to ensure that the location of your meeting is in proximity to your community members. If there is a large enough common area within the neighborhood, consider hosting the meeting there. Otherwise, pick a fun venue or location nearby to host the meeting. 
  • Announcements: How are you going to notify residents about the annual meeting? While it’s generally required to notify each HOA member directly, it’s also essential to market the meeting other ways. Consider hanging reminders throughout common areas. If your HOA has a website or social media channels,  you can also post announcements online.
  • Agenda: Residents should also be notified of the annual meeting’s agenda beforehand. The bylaws likely describe any notice requirements the board or managers must comply with in advance of the annual meeting.
  • Incentives: Incentives are extremely helpful to encourage residents to attend annual HOA meetings. Consider offering food or prizes at the meeting.

Additional Resources

For more information on HOA annual meetings, you can refer to your homeowner association’s bylaws. These governing documents lay out the specific guidelines for HOA operations, including annual meeting requirements.

You can also get in touch with an experienced real estate broker who has a thorough understanding of the HOA annual meeting checklist.

What You Need to Know About a Condo Board Meeting

Posted on by LLCR Staff

If you are a condo owner, or in the process of becoming one, chances are you’ll eventually be invited to a condo board meeting. Before attending one of these meetings, it’s important to understand why they exist and how they operate.

Overview of a Condo Board Meeting

When you purchase a condominium unit, you automatically become a member of a homeowner association and are expected to pay regular membership dues.

This association is run by an elected board of directors, which handles the maintenance and repair of common areas, disputing among unit owners, and enforcement of rules and regulations, and condominium fees.

This association board is required to arrange condo board meetings because it operates as a corporation and therefore needs to meet with its officers and shareholders- in this case, board members and homeowners. 

The condo board meetings allocate regular time for the board to manage the day-to-day administration of the condo association.

Things New Condo Owners Should Know

If you’ve recently purchased a condo unit and you’re new to the association, there are a couple of things to keep in mind about condo board meetings.

First, before attending a scheduled meeting, ensure that it’s not a “closed-door” meeting for board directors only. However, in most cases, unit owners are legally allowed to attend open board meetings.

Even if the meeting is open to the entire association, you may not have the right to actively participate or vote during the board meeting. Annual meetings are designated at another time during the year to open up the floor to all members of the association to discuss broader issues.

Condo associations are always required to send out a notice at least 48 hours before a condo board meeting.These notices need to be mailed directly to all members of the association. They are also often posted around the condominium building.

As a new condo owner, it may be in your interest to attend these condo board meetings, although they aren’t required. Being present for these conversations can help you stay up to speed with board decisions that may directly improve your quality of life and the value of your property.

These meetings can also help you better prepare for the annual meetings when your voice can be heard, and you have the ability to vote on important matters.

Additional Resources

For additional information regarding your condo board meetings, don’t hesitate to get in touch with your association’s board directly. You can also request access to your association’s board policies.

If you’re in the process of finding a condo, your licensed broker is a great resource to learn more about your prospective condo association and its board meetings.

Connect with our experienced team today to help streamline the search for the perfect condo!

Can You Convert One Bedroom Into Two in Your Condo?

Posted on by LLCR Staff

If you’re considering adding an extra room to your condo, don’t be too quick to begin construction.

Before any big remodel project, especially one that involves converting one bedroom into two, you must first receive the go-ahead.

 

Why you need HOA Approval

Homeowner associations (HOAs) are responsible for maintaining and managing condo communities. These associations have tight control over establishing rules that unit owners must follow, especially when it comes to remodeling.

Before beginning any renovations, including adding an extra room to your condo,  it is critical to examine your HOA’s condo renovation rules to see what is permissible. You can find these guidelines laid out in the Covenants, Conditions, and Restrictions (CC&Rs).

Many CC&Rs require board approval before moving forward with any structural remodeling.

Homeowners associations generally try to grant unit owners as much freedom as possible, as long as they don’t upset or violate the rights of community members. The rules are in place to keep the community as safe and peaceful as possible.

If you disregard or violate your HOA rules and regulations, be prepared to face fines or legal action.

 

What is Considered a Structural Change in the City

If condo owners want to add or remove a wall within their unit, they need permission from the HOA because this type of remodeling is considered a structural change.

So what exactly is considered a structural change in a condo?

In many HOA bylaws, when defining structural change, a standard clause reads, “Nothing shall be done in any unit or on the common areas which may impair the structural integrity of the building or which may structurally change the building.”

Essentially, these definitions mean that a structural change involves changing your condo unit’s original floor plan and knocking down walls.

Anytime you change your unit’s layout, you need to run your design plans by HOA to ensure the safety of your unit and the entire building. Many associations ask homeowners to file an architect’s plan for any alterations on a unit.

If you add an extra room to your condo, this will involve changing the original floorplan of your unit and knocking down walls, therefore this renovation constitutes a structural change.

While it is likely that your HOA will allow this type of structural change, they need to be in the loop of this process, especially if it will be a loud and possibly disruptive project.

If you are serious about adding an extra room to your condo, don’t delay speaking with your HOA. The quicker you can get approval, the sooner you can begin your dream home renovations!

What Are Condo Flooring Requirements?

Posted on by LLCR Staff

When it comes to renovating a condo, be prepared for more restrictions than single-family home projects.

Because condos feature multi-family housing, the homeowner associations (HOA) have to take other residents and the building as a whole into consideration when implementing rules.

One of these HOA regulations includes condo flooring requirements. The Luxury Living team is here to share everything you need to know about understanding flooring rules and choosing the right floors for your home.

 

HOA Flooring Rules

Homeowner associations exist primarily to maintain and regulate a community. While the HOA doesn’t have a say in everything unit owners do, they do have a voice when it comes to flooring decisions.

Hard-surfaced floors can lead to noise nuisances and frustrations from the downstairs neighbors, so HOAs implement condo flooring requirements that help minimize noise complaints and keep residents happy.

Homeowner associations will typically include any restrictions on hard surface flooring in the rules and reference sections of the Code, Conditions, & Restrictions (CC&Rs). There may also be an adoption of guidelines as to what an owner can do to get approval for hard surface flooring if possible.

What happens if you ignore your HOAs flooring rules? Well, the board may subject you to fines, liens, or even legal action.

So if you have been considering tearing out that old carpet and replacing it with beautiful hardwood, be sure to run it by your HOA first before making any moves.

 

Best Flooring for Condos

Narrowing down the best flooring for your condo can be tricky.

While there are plenty of options, laminate tends to be a popular choice. This material looks just as beautiful as hardwood but comes at a more affordable price with soundproof qualities.

Vinyl also provides one of the quietest flooring option to ensure peace and quiet for you and your neighbors. Depending on the specific vinyl material you chose, this flooring choice can range anywhere from about $.40 per square foot for thin sheet vinyl, to $3.00 or so per square foot for luxury vinyl planks.

If you are looking for comfy and quiet, carpet is another safe route to take. This quiet flooring for condos is known for its sound-absorbing qualities from the fibers, as well as the mats the carpet installed over. Some HOAs may even require a certain percentage of condo floors to be carpet.

If you are teaming up with a contractor to spearhead your condo renovations, they are likely to provide good advice when it comes to choosing the best flooring for your condo. They also will have a thorough understanding of your condo’s CC&Rs to ensure the floor are compliant with the HOA’s rules and regulations.

Understanding and following your condo’s flooring requirements will help keep you, your neighbors, and your HOA happy during your next renovation project!

How to Use Condo Remodeling Contractors

Posted on by LLCR Staff

Remodeling a condo can be extensive and exhausting. To save yourself from overcommitting to a DIY project, consider teaming up with a professional condo contractor.

Leaving some of the hard work in the hands of an expert will help ensure that the vision for your space comes to life.

 

Residential Contractor Condo Work

Relying on condo remodeling contractors helps optimize the outcome of your home renovations. It also saves you time and stress associated with home improvement projects.

Residential contractors have the experience and credentials to flip your space, taking one more worry off your plate.

Additionally, these contractors are familiar with how homeowner associations operate and how to navigate HOA’s Codes, Conditions, and Restriction (CC&Rs). This is important because every condo HOA has its own unique set of rules and regulations that dictate what can and can’t be done during home improvement projects.

Unlike single-family homes, condos present a limited, finite, and shared space. Contractors understand how to work with this unique space and within the restrictions of multi-family housing.

 

Finding Condo Contractors

Before teaming up with any contractor, you need to find a good fit.

Narrowing down a suitable contractor involves finding one who you trust and fits in in your condo renovation budget.

Get recommendations. Speak with local real estate experts or friends to help find someone with a good track record. If no one in your circle of friends has a referral, check in with the National Association of the Remodeling Industry for a list of reliable members in your area.

If you think you’ve found your potential hire, be sure to meet or an in-person interview before moving forward.

Before hiring anyone, write up a contract that details every phase of the project: payment schedule; proof of liability insurance and worker’s compensation payments; a start date and projected completion date; specific materials and products to be used; and a requirement that the contractor obtain lien releases (which protect you if he doesn’t pay his bills) from all subcontractors and suppliers.

 

Condo Renovation Budget

Financing condo renovations can be tricky and costly.

Before beginning any phase of remodeling, establish a condo renovation budget. It’s important to decide in advance how much money you have to work with. Also, be sure to stick with this budget as closely as you can during the process.

If you decide to hire a contractor, be sure to know how much you have to spend on this hire. Consider setting up an agreed upon payment plan before the work begins.

With a better understanding of residential condo contractor work, that renovation project you’ve been dreaming of may not be far from reality. Find the perfect contractor today!

What You Need to Know About Condo Renovation Rules

Posted on by LLCR Staff

If you are considering remodeling your condo, you want to make sure that you are up to speed with all the rules and regulations before moving forward with any project.

The Luxury Living team is here to break down the major condo renovation rules that any unit owner should keep in mind.

Renovating a Condo Rules

Homeowner associations (HOAs) are responsible for managing condo communities. These HOAs have tight control over establishing rules that unit owners must follow, especially when it comes to remodeling.

Due to the fact that condos are attached to other units, condo owners are often under many more regulations when it comes to remodeling a unit than single-family homeowners.

Before beginning any renovations, it is critical to examine your HOA’s condo renovation rules to see what is permissible. You can find these guidelines laid out in the Covenants, Conditions, and Restrictions (CC&Rs).

If you don’t follow your HOA’s condo rules, the board may subject you to fees or court time, neither of which are fun to deal with. So to avoid these repercussions proactively stay informed and in accord with the CC&Rs.

Can you Remove Walls in a Condo?

Many condo owners remodeling inquire if they can remove a wall in their condo. While the answer is generally  ‘yes’, the unit owner must first go to the HOA board for approval.

Because condo units share walls and floors with neighbors, remodeling requires consideration of the building as a whole.

The homeowners association wants to be sure that the removal of your interior walls won’t result in damage of the condo or the integrity of the building.

What is Considered a Structural Change in a Condo?

Unit owners require permission to remove a wall is because it is considered a structural change.

So what exactly is a structural change in a condo?

In many HOA bylaws, when defining structural change, a standard clause reads, “Nothing shall be done in any unit or on the common areas which may impair the structural integrity of the building or which may structurally change the building.”

Based on this definition, a structural change involves changing your condo unit’s original floor plan and knocking down walls.

Therefore, if you are interested in changing up your condo’s floor plan, be sure to get the go-ahead from your board before beginning remodeling.

With a better understanding of the rules involved in renovating a condo, hopefully you feel more confident moving forward with your next remodeling plans.

If you’re looking for a new home to add a little TLC, you came to the right place. Our experienced brokers are well versed in the Chicago market and can help you find a home to add your own personal touches to or a brand new move-in ready construction.

Need some additional renovation ideas for your condo? Follow the link below!

Condo Renovation Ideas For Every Room

Condo Renovations That Improve Your Home Value

Posted on by LLCR Staff

If you are considering selling your condo be sure to first maximize the value of your home.

Renovations provide an excellent opportunity to upgrade your space and improve the worth of a home.

The Luxury Living team is here to share some worthwhile condo renovations that increase home value and optimize the return on your investment.

 

How Renovations Increase Value of Condos

Home improvement projects prove to be one of the best ways to boost home value.

By remodeling your condo, you can improve the functionality and beauty of your property, which ultimately increases the selling price of your home.

If you can list your condo at a higher price than what you purchased it for, you may be able to pocket a significant amount of money once the deal closes.

However, to ensure a return on investment, it is critical to chose your renovations wisely. You want to be sure that the cost of enhancing your property will pay off when you resell.

 

Best Condo Upgrades

When deciding on remodeling projects to pursue, you want to consider the desires of prospective purchasers.

Here are some of the best condo upgrades to entice potential buyers and  improve your home value:

 

  • Kitchen: According to real estate experts, the kitchen is the most significant upgrade. Many new home buyers rank ‘modern kitchen’ as a top priority in their house hunt. Invest in refitting this area with brand new quartz countertops, refitted cabinets, and stainless steel appliances.
  • Hardwood Floors: Floors are also a major selling point for your home. While hardwood floors may cost more out of pocket, they prove to be a worthwhile investment by helping units sell faster and for higher prices. There’s nothing worse than bad, outdated carpet.
  • Bathroom: Similarly to the kitchen, the bathroom speaks volumes to potential homebuyers. It is worth your dime to upgrade the cabinets and other features throughout your bathroom. Good news is that these upgrades tend to run at a much lower cost compared to kitchen renovations.
  • Paint: Even a fresh paint job can work wonders for increasing the value of a condo. Play it safe and stick with a neutral color scheme. Whites and off-whites remain the top-selling interior colors and appeal to most homebuyers.

 

Should you Renovate?

For any homeowner planning to resell, renovations may be the key to increasing your condo’s value.

If your condo unit is looking outdated or in need of a structural change, then renovating may be a no brainer.

Even if your condo is in good condition, simple changes, such as a fresh paint job, or new appliances may lead to greater interest and higher asking prices.

Consider meeting with a local real estate expert or contractor to get advice on which renovations are right for you.

Now that you have insight into remodeling and renovations that improve home value, it may be time to begin a project of your own today!

Can You Renovate a Condo?

Posted on by LLCR Staff

Condo renovations can help transform a house into your dream home. These projects also have the potential to increase the value of your property drastically.

If you’ve questioned whether or not you can renovate a condo, then keep reading.

Whether you have experience with home renovations or this is a new venture, rest assured that the Luxury Living team is here to share how to remodel a condo and what you need to know beforehand.

 

Condo Renovations That Improve Your Home Value

Renovations have great potential to maximize your property’s worth. Improving your condo’s value can help ensure a return on investment if you decide to resell your property.

Check out some of the best condo upgrades to improve your home value:

  • Kitchen: According to real estate experts, the kitchen is the most significant upgrade. Many new home buyers rank ‘modern kitchen’ as a top priority in their house hunt. Invest in refitting this area with brand new quartz countertops, refitted cabinets, and stainless steel appliances.
  • Hardwood Floors: Floors are also a major selling point for your home. While hardwood floors may cost more out of pocket, they prove to be a worthwhile investment by helping units sell faster and for higher prices. There’s nothing worse than bad, outdated carpet.
  • Bathroom: The bathroom speaks volumes to potential homebuyers. It is worth your dime to upgrade the cabinets and other features throughout your bathroom. Good news is that these upgrades tend to run at a much lower cost compared to kitchen renovations.
  • Paint: Even a fresh paint job can work wonders for increasing the value of a condo. Play it safe and stick with a neutral color scheme. Whites and off-whites remain the top-selling interior colors and appeal to most homebuyers.

 

What You Need to Know About Condo Renovation Rules

Homeowner associations (HOAs) are responsible for managing condo communities. These associations have tight control over establishing rules that unit owners must follow, especially when it comes to remodeling.

Condo owners are often under many more rules when it comes to remodeling a unit than single-family homeowners.

Before beginning any renovations, it is critical to examine your HOA’s condo renovation rules to see what is permissible. You can find these guidelines laid out in the CC&R (covenants, conditions, and restrictions).

Condo owners considering remodeling often inquire if they can remove a wall in a condo.  Generally, the answer is ‘yes.’ However, the unit owner must first go to the HOA board for approval.

Unit owners require permission to remove a wall is because it is considered a structural change.

So what exactly is a structural change in a condo?

In many HOA bylaws, when defining structural change, a standard clause reads, “Nothing shall be done in any unit or on the common areas which may impair the structural integrity of the building or which may structurally change the building.”

Essentially, a structural change involves changing your condo unit’s original floor plan and knocking down walls.

Anytime you change your unit’s layout, you need to run your design plans by HOA to ensure the safety of your unit and the entire building.


How to Use Condo Remodeling Contractors

Teaming up with condo remodeling contractors helps optimize the outcome of your home renovations. It also saves you time and stress associated with home improvement projects.

However, before moving forward with a contractor, you need to find a good fit.

Narrowing down a suitable contractor involves finding one who you trust and one who fits into your condo renovation budget.

Do some research beforehand and get recommendations. Speak with local real estate experts or friends to help find someone with a good track record. If no one in your circle of friends has a referral, check in with the National Association of the Remodeling Industry for a list of reliable members in your area.

If you think you’ve found your potential hire, meet for an in-person interview to be sure the contractor is a good match before making anything official.

Once you’ve secured the right person for the job, ensure that the contractor is up to speed with your HOA’s renovation rules and regulations.

The final step before contractors can begin residential contractor condo work is putting everything in writing.

Write up a contract that details every phase of the project: payment schedule; proof of liability insurance and worker’s compensation payments; a start date and projected completion date; specific materials and products to be used; and a requirement that the contractor obtain lien releases (which protect you if he doesn’t pay his bills) from all subcontractors and suppliers.

 

What Are Condo Flooring Requirements?

Homeowner associations often implement condo flooring requirements to minimize noise complaints and keep residents happy.

Hard-surfaced floors can lead to noise nuisances and frustrations from the downstairs neighbors.

Therefore many HOAs include restrictions on hard surface flooring in the rules and reference sections of the CC&Rs to ensure quiet flooring for condos. There may also be an adoption of guidelines as to what an owner can do to get approval for hard surface flooring if possible.

If you are considering tearing out that old carpet and replacing it with beautiful hardwood, be sure this condo renovation follows the HOA’s guidelines.

Laminate makes one of the best floorings for condos. This material looks as beautiful as hardwood, but is more affordable and know for its soundproof qualities.

Vinyl is another popular option that tends to provide the quietest flooring option.

Before moving forward with any home improvement project, be sure to understand and follow your HOA flooring rules to avoid conflict and complaints.


Can You Convert One Bedroom Into Two in Your Condo?

If you want to convert one bedroom into two, be sure to check out your condo HOA’s CC&Rs. Odds are you will need to get approval from the board before moving forward with the remodeling, especially since it is a structural change.

When examining what is considered a structural change in a condo, it is clear that if you add an extra room to your condo you will be changing the original floorplan of your unit and knocking down walls.

Before making any structural change, remember that you need to run the project pass your homeowners association to avoid fines or court. Many associations ask homeowners to file an architect’s plan for any alterations on a unit.

While it is likely that your HOA will allow this structural change, they need to be in the loop during this process, especially if it will be a loud and possibly disruptive project.

Homeowners associations generally try to grant unit owners as much freedom as possible, as long as they don’t upset or violate the rights of community members.

Renovating a condo provides an exciting opportunity for homeowners to bring their dream house to life. Begin your property’s transformation today!

What is an HOA Resale Package?

Posted on by LLCR Staff

If you are in the process of purchasing or selling a condo, be prepared for lots of paperwork. There is a great deal of information the buyer needs to be aware of before obtaining the title to a property.

Among all of this paperwork involved in condo sales, HOA resale packages are critical for any prospective buyer to receive.

Overview of an HOA resale package

When a buyer is ready to purchases a condo, the homeowners association generally administers a resale package. This package is prepared by the HOA, within seven to ten days of the initial offer. This package is a packet of critical information, including a complete set of record documents that govern the association.

Regardless or not if a state requires HOA’s to provide resale packages, buyers should always obtain these documents before finalizing a transaction.

While information within these packages may vary depending on the state, they commonly include the following documents:

  • Annual Financials
  • Articles of Incorporation
  • Budget
  • Bylaws
  • Covenants, Codes, & Restrictions (CC&Rs)
  • Insurance Declaration Page
  • Regular Meeting Minutes
  • Resale Certificate/Demand
  • Reserve Report, Rules and Regulations

Generally, it is the seller’s responsibility to obtain the resale package for the buyer. However, if you do not receive an HOA resale package following your offer on a condo, your licensed real estate broker should be your first point of contact.

Why You Need to Get One

As a condo buyer, it is crucial to obtain and carefully review all documents within your HOA resale package before moving forward with the purchase.

This package discloses information about the community and whether or not the seller is current in their financial obligations to the association. All of this information could impact a buyers decision to close on the listing.

Knowledgeable and trustworthy brokers can point out any restrictions in the resale certificate that may lead a buyer to walk away from a deal.

HOA resale packages also protect both the buyer and the seller from potential disagreements and litigations and minimize financial risk for the association.

How it Makes the Buying and Selling Process Easier

The HOA resale package eases the buying and selling process by laying out important information all in one place. The buyer does not have to worry about going back and forth with the agent or seller to sort out details regarding the transaction.

This paperwork enables transparent transactions and keeps buyers fully informed before investing in a property.

Both sellers and buyers will find that HOA resale packages offer vital information and peace of mind during a transaction. Keep this in mind before moving forward with your next condo purchase.

What You Need to Know About Buying a Condo as an Investment Property

Posted on by LLCR Staff

If you have a desire to profit from the robust Windy City real estate market, consider buying a condo as an investment property.

For any new or experienced buyer, condominiums provide a more affordable and low-maintenance investment in a large city.

What Are Investment Properties

An investment property is real estate property that is purchased with the intention of earning a return on investment, or a profit on the original purchase. This ROI is often gained through either rental income or the future resale of the property.

While there is no magical secret to finding the perfect investment property, investors do rely on certain skills and strategies to help narrow down a property that is likely to be profitable.

Teaming up with an experienced broker is one of the first steps any buyer should take to ensure an informed and strategic property investment.

Why do People Choose Condos as An Investment

If you are considering investing in a condo, know that you are not the only one who recognizes the advantages that this property type offers. Condominiums attract investors for multiple reasons.

First, condos tend to be more affordable than single-family homes; especially in a large city like Chicago.

Condo investments also provide the opportunity to profit on monthly rental income and receive substantial tax write-offs.

Additionally, if you invest in a condo, there is less maintenance to worry about. The real estate investors are not directly responsible for caring for the building or common grounds area, which means more time and less stress.

How to Find the Right Option for Your Investment

To ensure a wise investment and maximize your ROI, it is essential to find a condo unit that best fits your needs.

Here are a couple of items to keep in mind when searching for the right investment:

  • HOA Fees: Investors appreciate condos because the homeowner association provides beneficial maintenance and services to residents. However, to fund these activities, unit owners are required to pay monthly or annual dues. Before closing on a property determine how much you would be expected to pay as a member of HOA.
  • HOA Rules: Along with fees, HOAs also establish a set of rules for condo owners and residents to follow. Some HOAs enforce stringent regulations regarding rentals, including the number of units that may be rented out. Examine your potential properties to ensure that the guidelines won’t interfere with any plans to rent or resell.
  • Financing the Investment: Be sure to sort out your plans to fund your investment. While obtaining mortgage loans is a common method of financing, keep in mind that these loans are generally more expensive to obtain than single-family detached homes.

If you are ready to break into the world of property investment and start building equity, consider buying a condo as an investment property. Let the Luxury Living team help you find the perfect property today!

Are Condos a Good Investment?

Posted on by LLCR Staff

Investment properties open the door to various financial benefits. With multiple property types for investors to choose from, you may be wondering if condos are a good investment.

The answer is yes. However, to ensure a worthwhile investment, make sure you chose the right condominium to fit your needs. A wise selection is crucial to profiting on your property and building equity.

What You Need to Know About Buying a Condo as an Investment Property

Many people get involved with investment properties with the intention of earning a return investment. This involves purchasing a real estate property and receiving additional income either through rental income or the future resale of the property.

Condo units attract investors for multiple reasons.

First, condos tend to be more affordable than other properties, such as detached single-family homes; especially in a large city.

Condo investments also provide the opportunity to profit on monthly rental income and receive substantial tax write-offs.

Additionally, if you invest in a condo, there is less maintenance to worry about. The real estate investors are not directly responsible for caring for the building or common grounds area, which means more time and less stress.

If you are considering buying a condo as an investment property, it is essential to find a unit that best fits your needs.

To find the best option here are a couple of items to keep in mind:

  • HOA Fees: Condos are great because the homeowner association provides beneficial maintenance and services to residents. However, to fund these activities, unit owners are required to pay monthly or annual dues. Before closing on a property determine how much you would be expected to pay as a member of HOA.
  • HOA Rules: Along with fees, HOAs also establish a set of rules for condo owners and residents to follow. Some HOAs enforce stringent regulations regarding rentals, including the number of units that may be rented out. Examine your potential properties to ensure that the guidelines won’t interfere with any plans to rent or resell.
  • Financing the Investment: Be sure to sort out your plans to fund your investment. While obtaining mortgage loans is a common method of financing, keep in mind that these loans are generally more expensive to obtain than single-family detached homes. Also, if you are looking into a loan, be aware the lenders will not only evaluate you but the condo HOA as well.

Are Condos Hard to Sell?

If you are considering investing in a condo, it is natural to question the difficulty or ease of selling this type of property.

One of the most important factors to consider when answering this question is the HOA. Your homeowners association is responsible for laying out the rules and regulations regarding resales. This is also why it is important to understand your HOA’s guidelines before you ever purchase.

Improving the chances and timeline of a condo sale also involves listing your property’s assets. These are all of the features that make your apartment great. Assets also help your property stand out among all of the other current listings.

Finding an experienced real estate broker will also increase the odds of selling your condo, especially as a new investor. These licensed professionals have a thorough knowledge of the process as well as the current market.

Understanding the state of the current market is critical in deciding if it is a wise time to sell. Various factors, including the job market and time of year, may impact the market. However, even in down markets, the refreshing news is that condos tend to sell faster than single-family homes.

Tips for Buying a Condo to Rent

Many investors purchase condos to rent because it leverages monthly rental income and provides tax benefits.

Buying a condo to rent may prove a big endeavor, especially as a new investor. It is critical to understand the process beforehand to equip yourself in making a wise and confident purchase.

Here a few tips before closing a deal:

  • Find a desirable location: When it comes to any property purchase, location is everything. Finding a hot or up-and-coming neighborhood will increase the value of your property.
  • Examine the HOA: Homeowners associations can impact your potential investment immensely. Before buying, make sure you feel comfortable with the HOA’s monthly dues, as well as their rules and regulations.
  • Consider financing: Before purchasing a condo, you need to apply for a mortgage. Lenders will often review the condo board documents and building operations.

Before leasing out your condo, you also need to understand what it is like dealing with renters.

Condo owners seeking to lease out their property need to thoroughly examine renter applications to ensure a wise choice in a tenant. Since renters will be residing in your property, you want to choose a responsible tenant who will likely take care of the unit and keep up with rent.

What is an HOA Resale Package?

When a buyer is ready to purchases a condo, the homeowners association administers a resale package, often prepared by the seller, within ten days of the initial offer. This package is a packet of crucial information, including a complete set of record documents that govern the association.

While this package may vary depending on the state, it commonly includes the following documents:

  • Annual Financials
  • Articles of Incorporation, Budget
  • Bylaws
  • Covenants, Codes, & Restrictions (CC&Rs)
  • Insurance Declaration Page
  • Regular Meeting Minutes
  • Resale Certificate/Demand
  • Reserve Report, Rules and Regulations.

Every potential buyer should obtain an HOA resale package to gain critical information regarding the purchase, which may impact the decision to move forward with the purchase.

The resale package also eases the buying and selling process by laying out information that protects both the buyer and the seller from potential disagreements and litigation.

If you make an offer on a property and do not receive a resale package, your real estate agent should be the first point of contact.

Is a Home or Condo a Better Investment?

Potential investors commonly inquire if homes or condos are a better investment. The truth is that the answer is not black and white. It depends entirely on the buyer’s needs and the local market.

If you are looking to invest in a big city, specifically the Windy City, it is safe to say that a condo is a wise move.

Purchasing a condo allows for easier entry into the housing market at a much more affordable cost. New buyers have an easier opportunity to take advantage of tax deductions and build equity.

Finding affordable single-family homes in a big city tends to be unreachable for new or young buyers, with many of these properties reaching the millions.

Condo investments also mean less maintenance and more free time for buyers. Instead of worrying about keeping up with the yard or dealing with building repairs, condo owners can leave these concerns in the hands of the homeowners association.

Securing a worthwhile investment also involves a thorough knowledge of the market and the needs of the buyer. For new and experienced investors, licensed brokers can help ease the search process and find the most suitable property.

Don’t let the opportunity to invest and build equity pass you by. Team up with an experienced broker and find the perfect condo today!

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