The co-ownership industry has been growing in popularity, and many now live in a condominium. This type of housing provides comfort at a reasonable price. Nevertheless, living in a co-ownership means living in a community, which is strictly regulated to ensure the proper functioning of the property. Certain rules must be followed in order to avoid conflicts and unpleasant surprises. Here are 4 mistakes to avoid while living in a co-ownership:
#1: Not Paying Your Co-ownership Fees
At the end of every month, the members of the co-ownership (co-owners) must pay a predetermined amount (called co-ownership fees) to the co-ownership syndicate or to the property manager. This amount covers the cost of various expenses related to the maintenance and is used for a fund for eventual construction. Thereby, not paying or paying only part of the co-ownership fees can depreciate the property. Remember that co-ownership fees are used to maintain important parts of the property like the elevator, the heating system, and the landscaping. A poorly-maintained property caused by a lack of funds decreases the quality of life of the residents.
#2: Overlooking Your Insurance Contracts
When living in a co-ownership, you should find out about the types of insurance contracts because a part of the property (called a private portion) is owned by one co-owner, and the rest is owned by all the co-owners (called common portions). The first type of insurance policy is individual and owned by a co-owner. It protects said co-owner’s personal property. The second type is collective and is owned by the syndicate of co-ownership. This insurance policy covers the common portions of the property. Many co-owners ignore the amount of the insurance fees, which is a mistake. Every co-owner can and should be aware of the property’s insurance to assert their rights when necessary.
#3: Not Being Aware of the Co-ownership’s Rules
The rules of a co-ownership are written in a document, which is given to every co-owner upon arrival. Everyone must know and follow these rules. Among others, they contain the rights and duties of the co-owners. Many rules regulate the common portions of the property. Thus, if a new co-owner is not aware of the rules, problems and conflicts may arise.
#4: Underestimate the Management Responsibilities of a Co-ownership
As we mentioned previously, the co-ownership industry is full of jargon, which means that the average person may get lost in the complex words and procedures. For that reason, the syndicate of co-ownership could turn to a property manager who will handle the property management. On the other hand, retaining the services of a property manager involves additional costs to the co-owners. Alternatively, one could acquire a management solution to reduce the workload of the syndicate of co-ownership. For example, Condo Expert offers a way to automate many tasks in the management process and to keep in one place all the data related to the co-ownership.