Best Steps to Start a Condo Association

Posted on 20 January, 2023

Starting a condo association is a great way to advocate for the rights of residents within a condo building. Creating this type of organization is often easier said than done, though, and many condo associations take months or years to come to fruition. Still, if you want to start the process, you should know a few things.

How to Start a Condo Association

Consider the following five steps to learn how to start up a condo association.

Write the Right Condo Association Documents

One of the first steps to establishing a condo association is drafting the governing documents that outline its goals. Two documents are particularly important for this purpose — the master deed and the declaration of trust — and these will help you establish the rights of the association. The master deed indicates the legal location of the condominium and outlines its common areas. The declaration of trust shows that the condominium will function as a trust and identifies the original trustees.

Take Control After the Turnover Period

Difficulty during the turnover period is the most common complication to arise when forming a condo association. The turnover period occurs when buyers purchase 51% of the units in the condominium building. At this point, the initial developer of the building will lose control, and the board of trustees will take ownership of the building’s maintenance. However, challenges may arise as developers resist this process or even try to retain control.

Establish a Board of Trustees

Establishing a board of trustees is an essential part of the process when creating a condo association. Residents of the building will elect these positions, with some wielding greater voting power because they possess more shares in the building. The voting process should allow all residents to voice their opinion and align with the protocols outlined in the association bylaws.

Determine the Priorities of the Association

Once you’ve elected board members, established governing documents, and made it through the turnover period, you’re on your way to a functional condo association. It’s time to start considering what the goals and priorities of the association will be. Consider what kind of community amenities you want to invest in, for example that will improve residents’ quality of life.

Set Condo Association Fees for Homeowners

As you establish the priorities for your newly-founded condo association, one crucial factor will likely recur — cost. Of course, residents will probably express concern about the expenses associated with specific amenities, which is an excellent opportunity to hash out the fees that every resident will need to pay. Remember that these fees may need to cover expenses such as landscaping, security, community amenities, and trash service.

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