HOA situation - should I sell and get out? - Landlord Forum thread 362631

HOA situation - should I sell and get out? by Robert on December 11, 2023 @10:28

I've been a LL for 20 + years for condos (apartment style).
I bought them as new units.
As the years have passed, there has been a lack of fiscal management of the assoc dues, especially as they relate to the larger improvements such as roads and roofs.
I've noticed this same situation in 3 other condo associations in my area of Michigan.
Bottom line: most owners do not want to work on the board and the ones that do volunteer are not really helpful or competent in what has to be accomplished.
The PM companies say the responsibility is all on the board members, but as I mentioned above, if there is a board, there are only 1-2 people, and they are very inexperienced. ultimately, this has led to financial issues, such as assessments and ever-increasing assoc dues.
I'm at a point where I do not think this is a good investment any longer. It looks like the lack of fiscal management (with no solution in sight) and the age of the properties, will for certain negatively impact my ability to make any profit.
I'm wondering if anyone else is experiencing the same thing. It seems to me that the younger people, in general, do not want home ownership responsibility and look for condo living where they do not have to do much at all.
If we do not have willing and somewhat competent people to volunteer on the board, then the fees and assessment costs are just going to keep stacking up. This could in worst case scenario, create a situation where the community has a roof issue, for instance, no reserves, or super high assoc dues, and prevent the ability to sell to anyone with common sense. Aside from running for president of the board myself and try for fix the situation, which I cannot do, or charging the highest rent, it feels like a losing situation today.
Any thoughts would be appreciated. Thanks for reading.

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Re: HOA situation - should I sell and get out? by Garry on December 11, 2023 @16:44	[ Reply ]

You have made your money thru the appreciation of the condos, the paying down of your mortgages, along with regular rent increases. It's time to sell now, before your fees get so high, that you no longer make a profit on your investments.

Re: HOA situation - should I sell and get out?

Re: HOA situation - should I sell and get out? by Delia on February 7, 2024 @07:57	[ Reply ]

I had a similar situation in Oregon. We lived there owned a dozen properties. Democrats took control and imposed statewide landlord tenant laws, that were not reasonable to landlords. We started selling and transferring our assets 1031X to New Mexico for better ROI. We got stuck with 3 properties we were unable to get sold and replaced because of covid crap. The properties in NM rent and appreciation are much better, It was a good decision it has gotten much worse in OR, sell 1031X move.