Common Problems Boards Inherit After Turnover
Lance Luke
8/16/20251 min read
When a newly elected board takes over from the developer, they often inherit more than meeting minutes and financial statements. Many associations find themselves coping with unexpected maintenance issues, underfunded reserves, or unresolved defects. Understanding these common problems can help boards act quickly and prevent long-term damage to the building and its finances.
1. Underfunded or Incomplete Reserve Accounts
Developers often keep dues artificially low to make units more attractive to buyers. As a result, reserves may not reflect the true cost of maintaining roofs, plumbing systems, elevators, pavements, and other building components. Boards must immediately review the reserve study and adjust the budget to match actual needs.
2. Hidden Construction Defects
Problems such as water intrusion, spalling, drainage issues, improper roofing, and inadequate waterproofing frequently emerge after turnover. These issues may not have been visible during the construction phase but can result in costly repairs if not promptly investigated.
3. Poor or Unfavorable Service Contracts
Boards may inherit service contracts signed by the developer—landscaping, maintenance, trash collection, security, and more. Some may be overpriced, unnecessary, or locked into long terms that do not benefit the new association. Early review and renegotiation are essential.
4. Missing or Incomplete Documentation
Architectural drawings, warranties, permits, O&M manuals, and inspection reports are often incomplete or entirely absent at turnover. Without these documents, the board has limited insight into how the building was constructed and what materials or systems were used.
5. Delayed Maintenance and Insufficient Inspections
Developers may postpone non-essential maintenance while completing unit sales. After turnover, the board may discover unaddressed issues such as deteriorating paint, cracked pavement, leaking roofs, or outdated fire safety equipment.
6. Unrealistic Owner Expectations
Owners often expect immediate improvements, but boards need time to assess finances, review contracts, and understand the condition of the building. Transparent communication helps manage expectations and keeps the community aligned.
Moving Forward With Proactive Planning
Turnover marks the beginning of true self-management for the association. By identifying inherited problems early, seeking expert evaluations, and prioritizing safety and long-term maintenance, boards can correct past oversights and build a healthier, more financially secure community.