Blog

• 11.01
  2012

  What does it take?

  Understanding the role of a Trustee

  January 11, 2012

  Lucia Baldock

  Property Assistant

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  Many people are driven to purchase condominiums – instead of single family homes – to remove the worries associated with maintaining a property, such as caring for front or backyards, making roof repairs, replacing doors or windows, and tending to all of the day-to-day tasks required for the upkeep of a property. Why wouldn’t you want to live in a place where all of that is taken care of for you?

  The truth is that while it may seem everything is taken care of for you, there is a Board of Trustees, consisting of elected owners, hard at work in every condominium building. A condominium is run like a democracy with a majority of owners electing a Board of Trustees who make decisions on their behalf with the best interests of the association in mind. Trustees of a condominium association have the legal responsibility to run the condominium.

  Each condominium owner should take the opportunity to volunteer as a Trustee for at least one term.  Serving on a Board helps owners to understand all that is involved in running a condominium, gives them the opportunity to get to know their neighbors better and shows their interest in cultivating the association. Good Trustees make decisions with these goals in mind.

  If you decide to volunteer as a Trustee, be prepared to invest a healthy amount of time in your building.

  Every condominium owner – and Trustees especially – should take a moment to read and understand the provisions of the Master Deed, Declaration of Trust/Bylaws, and Rules and Regulations. These documents govern the rights, remedies and obligations of owners and Boards, and essentially serve as the “Bible” for the condominium association.

  Each member of a Board should fill a particular role. Typically the roles consist of: President, Secretary and Treasurer.  Not all boards follow this structure, however, and there are times when some Trustees will wear more than one hat at a time. It is always recommended that a Board elect a point person, though, to ensure a smooth flow of information and easy communication between the Board, the owners and the property management company.

  The major responsibilities of a Trustee are: protecting and increasing the property value, assembling a budget that covers all day-to-day expenses and funds the reserve account, and planning trustee and owners meetings.

  Trustees can protect a property by planning proactive maintenance, developing relationships with assigned vendors, and staying on top of any common area repairs or improvements. They can also hire an engineer to perform a reserve study, so replacement costs can be planned for and do not come as a surprise.

  Trustees’ fiduciary responsibilities include drafting and approving an annual budget, making sure all owners are paying their condo fees on time, and maintaining building insurance coverage. It is expected and assumed that Trustees will be mindful of how they spend the association’s money, giving first priority to the building’s most prominent needs.

  To make the aforementioned possible, Trustees must plan Trustee meetings and annual owners' meetings to discuss building maintenance, financials and plans for future improvements. Trustee meetings can be held on a monthly, quarterly or annual basis, but are an essential part of good communication between the members of a Board.

  With all that a Board has to do, Trustees often make the decision to hire a professional property management company to assist with the day-to-day operations of a property. Management can also provide assistance with projects, which can take a great deal of time. But above all, a property manager has the education and experience to guide a Board in its decision-making processes.

  To learn more about how property management can help improve your community and quality of life, call Cailin Bundrick at 617-316-3310.

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