Page 5 - New England Condominium February 2020

NEWENGLANDCONDO.COM NEW ENGLAND CONDOMINIUM -FEBRUARY 2020 5 Yale Robbins Publisher Henry Robbins Executive Vice President Joanna DiPaola Associate Publisher Hannah Fons Senior Editor Darcey Gerstein Associate Editor Pat Gale Associate Editor Shirly Korchak Art Director Anne Anastasi Production Manager Victor Marcos Traffic Coordinator Alan J. Sidransky Staff Writer Alyce Hill Director of Sales Copyright 2020 by New England Condominium Magazine LLC, dba Community Association Publishing.All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written permission. New England Condominium is published monthly in New York, New York by New England Condominium Magazine LLC, dba Community Association Publishing, 205 Lexington Ave., 12th Floor, New York, NY 10016. 508-753-4630. ISSN 1550-946X. Periodical postage paid at New York, New York and additional mailing offices. Subscriptions are available free by request to condominium and homeowner associations. POSTMASTER: Please send address changes to New England Condominium Magazine, 205 Lexington Avenue, 12th Floor, New York, NY 10016. FREE Subscriptions for Board Members, Trustees, Property Managers and Real Estate Decision Makers. To Subscribe, please visit us at: newenglandcondo.com/subscribe TABLE OF CONTENTS C ondominium wner viCtions o e . . . . . . . . 1 If a rental tenant defaults, persists in violating rules, or breaks the law, they can be evicted from their unit. It can certainly be a drawn-out, acrimonious process, but it’s more or less routine. While much more rare – and more complicated – it’s also possible to terminate a co-op share- holder’s proprietary lease and compel him or her to vacate the building for compelling financial or administrative reasons. m anaging onfliCt C . . . . . . . . . . 1 One of the unique aspects of life in a co-op or condo is that a building or HOA is in many ways a microcosm of the larger world outside. It can suffer from the same factionalism and partisan bickering annual increases to maintenance or common charges – but many shareholders and owners question as any political entity, only on a much smaller, more intimate—and therefore potentially more damag- ing—scale. Conflict and divisions in co-op and condo communities can and often do bleed into the community’s administration: the manager and board of directors. P arsing the nsuranCe i m arket . . . . 1 Insurance is cyclical; there are hard markets and soft markets, and insurance companies typically make money in two ways: underwriting profit, and investment income. When the market is soft, insur- ance companies are looking for market share, so they lower their premiums and relax their underwrit- ing guidelines, which allows them to write more business. New carriers or programs enter the market- place and charge lower premiums to gain market share, which reduces premiums further. t i he mPortanCe of obust eserves r r . . . . 8 Saving for a rainy day is a lesson we all learn as children. As individuals, we put away a little some- thing for that ‘just-in-case’ moment; similarly, co-op corporations and condominium associations must keep reserve accounts, not just for unexpected replacements and repairs, but for expected ones as well. The question is, how much money your board of trustees should keep on hand? The answer may depend to a great extent on what the ‘portrait’ of your community looks like. m aintenanCe ee nCreases f i . . . . 12 In life two things are assured: death and taxes. In condo and HOA life, there’s a third constant: why this is the case. In times of relative stability with inflation at record low levels, why do their monthly charges increase like clockwork every time the calendar flips to a new year? i ndustry ulse P . . . . . . . . . . . . . 6 Q uestions & a nswers . . . . . . . . . 7 m arketPlaCe . . . . . . . . . . . . . . 18