All Boston Beacon Hill condos have some form of a condo association. The association consists of a board. The member’s consist of unit owners that volunteer (in most cases). Their job is to set the agenda for well being of the condo building and its members. The condo board sets the rules and regulations.
The Beacon Hill Condo Board
What Are The Rules and
As such, the first question to is when buying a luxury Beacon Hill condo: What are the rules and regulations?
You must adhere to every regulation, so take your time to read the fine print and evaluate how each will affect your lifestyle or needs.
For example, If you’re an investor will the condo association allow you to rent your Beacon Hill condo? Are short-term rentals allowed? Are pets allowed
Most importantly, hire an attorney to review these rules and regulations. The condominium documents are usually drafted by an attorney so spending a little extra money to have a professional review them is well worth it.
What Are the Fees?
Another vital factor to consider when buying a Beacon Hill condo is the monthly condominium fees.
With a purchase of any Boston condo, you will still be expected to shell out monthly condo fees.
What do the condo fees go towards?
The condo fees are for the upkeep of the building such
While such services are important, you should get a good handle on how much they will cost you. On average, the figure ranges between $300-$1,000, but expect to pay more if you are buying a high end or luxury condo.
How’s the Condo’s Financial Health?
Before purchasing a Beacon Hill luxury condo, check out the financial position of the condo association.
Find out how much is in reserves for a rainy day fund.
Regardless of the reasons, financial distress is usually a red flag. The management can, for instance, increase the monthly fees in a bid to raise money to pay off its debts. As a buyer, this will affect you.
To protect yourself from such issues, ensure the condo has a clean bill of financial health before taking the next step.
Ask to see the property’s financial statements. The management should provide you
And once you get the documents, which should include profit and loss statements, bank statements and the balance sheet, determine whether the income and expenses add up.
If the condo is burning more cash than it’s making, huge red flag.
Any Lawsuits Going on?
Like the financial distress issue, condos can be sued for a range of reasons.
For example, if it’s unable to settle its debts, the lenders can take them to court. If a prospective or current buyer feels discriminated in any way, they can sue the board. If a resident sustained injuries because of a structural defect, he or she will certainly sue for compensation.
Pending suits don’t necessarily mean you should avoid buying a condo in Boston. Some suits are mundane, and their outcome cannot affect the value or performance of the property. However, take note of major lawsuits with huge financial implications.
How Established is the Management Company?
Does the Beacon Hill condo association have a professional management company? Is it self-managed?
How long has the manager been working for the property?
Here, we are looking for a long-standing manager. If the manager is fairly new, ask why? How many managers has the property had since it opened its doors to buyers?