Editorial
A well-located, reasonably priced condo with no owners association, no reserves and costs collected only as needed. Major repairs might be impossible, so we passed.
Contents
The next property was a condo that was neither properly self-managed nor run by an owners’ association, the kind of building where you wonder how it is managed at all.
The location was very good: close to a park, convenient for shopping, and on sale at an affordable price.
On a visit, it did not feel managed
When I went to see it, the view from the window was lovely, and I thought that spending on renovation might make it work. But from the moment I walked in, it felt unmanaged. The mailboxes looked as old as 40 or 50 years, and some were broken. The elevator was dated, and each time it moved I wondered if it would break down. The stairs were dirty. Someone cleaned, but not thoroughly.
The moment I entered the unit I thought it would need renovation money, and there were cracks in the walls everywhere.
Asking what “self-managed” meant
I asked about it and found that “self-managed” meant the building did not collect management fees or repair reserve contributions at all. When I asked what they did instead, I was told the money was collected each time it was needed.
Why we passed
I thought a building like this might not be able to carry out major repairs when the time came, so I judged it was not a property to buy and passed on it.
What this case shows
- Do not decide on location and price alone; check how the building is managed.
- Check whether an owners’ association exists, whether management fees and repair reserves are collected, and whether any reserve has built up.
- Look at places that show the state of management: mailboxes, the elevator, the stairs, and cracks in walls inside and out.
- Check whether major repairs would be paid for from a reserve or by collecting money as needed.
This is a record of an individual’s own decision and is not a recommendation of any property or investment. Legal points are described in the context of Japan; please consult a lawyer or a licensed real estate professional before making an actual decision.