Condo Media - June 2018 - 50

Insights from local
experts and executives

The Region
this issue:

[50] Massachusetts [52] Maine [54] New Hampshire [56] Rhode Island

MASSACHUSETTS

Planning for the Future

Reserves, Special Assessments, and Loans
[by Dean T. Lennon, Esq.]

In many conversations over
the years, I have heard trustees
remark about their pride over not
having raised the monthly condo
fee during their long tenure on the
board. While I understand this
sentiment, a flat monthly fee over a
long period of time is almost always
a mistake and it is a mistake that
the ownership could pay a large
price for in the future.
Over time, the cost of pretty much
everything increases. Are you paying
the same price for electricity that
you were in 2010? How about that
plowing contract? My guess is that
the price keeps going up and up.
I recently read that the floods in
Houston and Florida, disasters in

50

CONDOMEDIA

Puerto Rico and Massachusetts, as
well as the wildfires in California
have resulted in damages of over
$300 billion. It doesn't take much
imagination to predict that insurance companies will make up for
losses by raising premiums. As
costs rise, so should the monthly fee
because if your fee is not rising, that
means your association is putting
less into reserves.
BUDGETING AND RESERVES
Let's take a step back. The annual budget for every association
should include all costs paid by the
condominium. Such items include
master insurance, management
fees, common utilities, landscaping,

snow removal, and general maintenance. The annual budget should
also include a line item for reserves.
Generally speaking, reserves
should be about 10 percent of the
annual budget. Reserves are the
condominium's savings account for
when capital repairs and replacement are needed.
For ABC Condominium Trust and
its flat monthly fee, I suspect their
reserve account, if any, is paltry at
best. What happens when the roof
needs replacement? What happens
when it's time to tear up the potholeladen parking lot and re-pave? If
the money is not available in your
reserve account, the simple answer
is that the owners are going to get



Table of Contents for the Digital Edition of Condo Media - June 2018

Contents
Condo Media - June 2018 - Cover1
Condo Media - June 2018 - Cover2
Condo Media - June 2018 - Contents
Condo Media - June 2018 - 2
Condo Media - June 2018 - 3
Condo Media - June 2018 - 4
Condo Media - June 2018 - 5
Condo Media - June 2018 - 6
Condo Media - June 2018 - 7
Condo Media - June 2018 - 8
Condo Media - June 2018 - 9
Condo Media - June 2018 - 10
Condo Media - June 2018 - 11
Condo Media - June 2018 - 12
Condo Media - June 2018 - 13
Condo Media - June 2018 - 14
Condo Media - June 2018 - 15
Condo Media - June 2018 - 16
Condo Media - June 2018 - 17
Condo Media - June 2018 - 18
Condo Media - June 2018 - 19
Condo Media - June 2018 - 20
Condo Media - June 2018 - 21
Condo Media - June 2018 - 22
Condo Media - June 2018 - 23
Condo Media - June 2018 - 24
Condo Media - June 2018 - 25
Condo Media - June 2018 - 26
Condo Media - June 2018 - 27
Condo Media - June 2018 - 28
Condo Media - June 2018 - 29
Condo Media - June 2018 - 30
Condo Media - June 2018 - 31
Condo Media - June 2018 - 32
Condo Media - June 2018 - 33
Condo Media - June 2018 - 34
Condo Media - June 2018 - 35
Condo Media - June 2018 - 36
Condo Media - June 2018 - 37
Condo Media - June 2018 - 38
Condo Media - June 2018 - 39
Condo Media - June 2018 - 40
Condo Media - June 2018 - 41
Condo Media - June 2018 - 42
Condo Media - June 2018 - 43
Condo Media - June 2018 - 44
Condo Media - June 2018 - 45
Condo Media - June 2018 - 46
Condo Media - June 2018 - 47
Condo Media - June 2018 - 48
Condo Media - June 2018 - 49
Condo Media - June 2018 - 50
Condo Media - June 2018 - 51
Condo Media - June 2018 - 52
Condo Media - June 2018 - 53
Condo Media - June 2018 - 54
Condo Media - June 2018 - 55
Condo Media - June 2018 - 56
Condo Media - June 2018 - 57
Condo Media - June 2018 - 58
Condo Media - June 2018 - 59
Condo Media - June 2018 - 60
Condo Media - June 2018 - 61
Condo Media - June 2018 - 62
Condo Media - June 2018 - 63
Condo Media - June 2018 - 64
Condo Media - June 2018 - Cover3
Condo Media - June 2018 - Cover4
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201910
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201909
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201908
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201907
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201906
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201905
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201904
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201903
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201902
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201901
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201812
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201811
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201810
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201809
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201808
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201807
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201806
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201805
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201804
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201803
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201802
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201801
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201712
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201711
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201710
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201709
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201708
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201707
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201706
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201705
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201704
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201703
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201702
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201701
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201612
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201611
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201610
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201609
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201608
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201607
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201606
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201605
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201604
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201603
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201602
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201601
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201512
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201511
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201510
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201509
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201508
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201507
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201506
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201505
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201504
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201503
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201502
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201501
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201412
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201411
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201410
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201409
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201408
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201407
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201406
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201405
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201404
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201403
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201402
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201401
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201312
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201311
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201310
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201309
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201308
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201307
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201306
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201305
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201304
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201303
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201302
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201301
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201212
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201211
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201210
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201209
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201208
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201207
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201206
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201205
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201204
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201203
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201202
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201201
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201112
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201111
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201110
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201109
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201108
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201107
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201106
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201105
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201104
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201103
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201102
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201101
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201012
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201011
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201010
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201009
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201008
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201007
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201006
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201005
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_200904
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201003
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201002
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_201001
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_200912
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_200911
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_200910
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_200909
http://www.nxtbook.com/nxtbooks/mcneill/condomedia_200908
http://www.nxtbookMEDIA.com