Avoiding Those Condo Blues

The average apartment-building owner and tenant are fairly clear about their arrangement and who is responsible for certain tasks and payments. With a rented condo unit - where a homeowners' board of directors and management personnel are involved - some discrepancies may arise.

In general, everything inside the unit is accountable to the absentee owner. This would include plumbing fixtures, major appliances and all interior furnishings or decorations. Before the renter accepts the unit, he or she should check out these areas of concern.

On the flip side, the tenant should refer structural problems, parking lot imperfections, electric wiring faults, faulty elevators and leaks through windows or roofs to the condo management or board representatives. Large building systems, such as heating, are customarily under the rule of the association.

As a general rule, it is wise for the resident to get in touch with the unit owner first and then reach the board or manager whenever malfunctions occur. Or after notifying the tenant, the landlord may reach the association if the problem concerns an area used by all tenants in common.

If a professional management company is involved - as in most large buildings - repairs and services will be supplied throughout the building on a scheduled basis for reasonable fees. The resident could take advantage of these services and check with his landlord, who will pay for them.

If a management company is involved in a condo, representatives also may perform the tasks of finding tenants and handling complaints and payments for the absentee unit owner in exchange for a commission or rent.

There have been no prevailing differences with leases drawn up to permit renting of condo units from those permitting apartment leasing. A lease is a temporary conveyance of property in return for a set fee over a certain specified time. Conditions and obligations are spelled out. Both parties' signatures will appear on the agreement.

There are many adequate standard forms available at stationery stores. The usual form will stipulate the length of time, certain obligations, care and alteration, utility payments and security-deposit requirements.

Condo owners should insert a phrase regarding observance of condo association rules by the tenant. The prospective tenant should have a phrase inserted regarding the owner's compliance with association documents and payment of fees. A tenant should be aware that in previous general rulings, association concerns take precedence over the renter-owner matters.

One area of great concern for the absentee owner is insurance coverage. As complex as condominium insurance is under usual conditions, the situation is even more complicated when an owner rents out a unit.

The renter will be adequately covered by buying the standard HO-4 renters' policy, which covers his possessions. The absentee owner must make a careful review of the exterior building policy and the establishing documents.

In most cases, the unit owner needs to carry some form of liability insurance - for personal injury and property damage claims and fire insurance. Thus, there may be a need for a small owner's policy rounding out the coverage. Call the association's insurance agent.

The agent may be able to provide the most effective, comprehensive integrated and economical program for absentee owners.

Although it is a matter of choice, the association, unit owners and the tenant might benefit from having one company and/or agent insure all parts of a specific condominium. That way, there are no gaps in coverage, and overlap is kept to a minimum.