HOA Nut House

Maintenance Services Could Suffer From Non-Paying Residents

MIAMI --

Even condominium owners who are making their payments without problems could be negatively affected by their neighbors' failure to pay fees and mortgages, experts said.

Real estate experts said they are not surprised by what happened at the Cedars Pointe condominium building near downtown Miami on Monday. There were broken washing machines, a huge pile of trash and the condo association and management company were gone.

“A lot of people got in here and couldn't afford it,” says resident Wilson Borgus.

"It's affecting every building in some way. I would say almost every building has at least one foreclosure or one person that's not making their payments,” said Keller Williams foreclosure realty expert Melanie Hyer.

The NBC 6 Consumer Investigative Unit began getting indications this summer that condo associations across South Florida had started running into trouble, NBC 6's Willard Shepard reported. Foreclosed units in older buildings or unsold condos in new buildings that are just finishing construction meant the remaining tenants had to carry the load and pay the bills.

“And when they're not paying their maintenance fees -- the services in the building -- they have to take the budget cut somewhere,” Hyer said.

What should you watch out for in your building? What are the warning signs that your condo investment could ultimately end in real trouble?

"Are the services still happening? Do you still have valet parking? Is the pool still heated? Is their garbage hanging out? Do you see less staff working in the building?" Hyer said. "Those would be red flags."

Hyer had advice for condo owners who see trouble coming.

"You have to ask questions to the condo association, to the management company, to the developer, and don't be afraid to be a little bit of a nuisance,” Hyer said.

Experts said to call or see your condo association treasurer right away and go to meetings to keep up with the building's finances. Also, make sure the association fixes the small things before they do turn into costly big jobs.

For more tips on saving your condo, visit www.revestgroup.com.

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