Dear David,

We live in a building with very high condo fees. Our condo corporation is asking us to vote on a $13 thousand special assessment, to cover important repairs. Because our building is 35 years old, I assumed the condo corporation had been saving over time to manage these types of updates. On top of the rising costs, the corporation banned lockboxes from the lobby to improve the appearance of the building. I’m concerned about our budget and our ability to sell our unit under these circumstances. What are our options? – UNHAPPY

DEAR UNHAPPY: It’s understandable that you feel concerned about rising condo fees and a significant special assessment in an aging building. Ideally, the condo corporation would have been building up its reserve fund over time to handle major repairs, but unfortunately, that doesn’t always happen.

When a reserve fund falls short, owners are often asked to vote on a lump sum payment or special assessment to cover essential updates. The board may propose a payment plan to spread out the $13,000 cost over time, or consider borrowing on behalf of the corporation, which would raise monthly fees incrementally rather than requiring payment upfront. Depending on the urgency of the repairs, it may be possible to phase in the work over several years, depending on the condition of the building and the nature of the upgrades.

From a resale standpoint, there are positives and negatives to your situation. In the short term, special assessments have the potential to make buyers nervous if they suggest the building hasn’t been managed well financially. But once the repairs are completed and the condition of the building improves, property values could rebound and sometimes even increase once buyers see the benefits of a well-maintained property. Future buyers may be reassured by clear communication from the board and proper documentation of the work that has been completed.

Banning lockboxes from the lobby may improve the building’s appearance, but can also create logistical challenges for owners trying to sell their units. When lockboxes are allowed on site, real estate agents can show units easily and on short notice. Without lockboxes, showings are harder to coordinate, which will reduce buyer traffic and potentially impact sale prices in the building. In an ideal world, the condo board may wish to consider a more practical solution, such as relocating lockboxes to a designated and secure area that allows agent access.

PRO TIP: The policies of a condo corporation directly impact property values, especially when rising fees or limited access to units turns potential buyers away. The condo board and property manager have a responsibility to clearly communicate the effects of their actions to owners, and from there, owners can make informed, future-focused decisions. Adding a special assessment to condo fees could potentially become a burden for future buyers. If an owner is unable to cover the assessment upfront, a small personal loan paid back individually is far less likely to impact resale value than if the cost was passed on to a future owner. Good decisions consider today’s needs and tomorrow’s market. #Advice #AskDavid #TheNegotiator