August 13, 2010

In this week's tip, we explain why it's important to distribute a welcome kit to new owners in your homeowners association and suggest items to include in the kit.

"It's important for a number of reasons to have a welcome committee to educate new owners about the association and the community," says Matthew A. Drewes, a partner at Thomsen & Nybeck PA in Edina, Minn., who represents associations.

"We find a lot that people who move into community associations don't appreciate a lot of aspects of community association living. They don't realize there are likely to be rules and regulations regarding certain things, especially exterior maintenance or alterations to their property. They also may not realize it if there are restrictions on rentals or rules on how units can be rented and even that there can be pet and other restrictions."

Shouldn't new homeowners have received a copy of the association's governing documents before their purchase? Sure, but... "Even though the law in Minnesota—and I'm betting many other states—requires that buyers receive a current set of governing documents," explains Drewes, "many in fact may have received an incomplete or outdated set, or they haven't read them.

Those who have read them don't always fully realize the effects of the things they've read."

Though not too many of the associations he represents provide welcome kits, Dennis J. Eisinger, a partner at Eisinger, Brown, Lewis & Frankel PA in Hollywood, Fla., who currently represents more than 500 condo and HOA associations, also believes they're a smart move. "I think it's a terrific idea. For several reasons it can only be beneficial to the community. Possibly the forefront is for getting volunteers. Also, the more you can educate people up front who haven't lived in a community association before—many of whom come in and think they can do whatever they want and don't understand the concept of CC&Rs—that's important. Finally, it promotes a neighborly feeling."

Here are things to consider including in your new-owner welcome kit:

1. Governing documents.

Provide a complete set of your CC&Rs and rules and regulations. "If they're posted online, provide a reference to where owners can find them online," says Eisinger. "Also include any rules that haven't been recorded and might not have been provided with the disclosure package."

2. Forms.

Include the forms owners need to comply with your association's registration requirements. "For example, under most bylaws, there's a requirement that people register to vote, to register their pet or their car, and to provide license information," says Drewes. "They can do all those things, and you can make it easier for them to do that."

Those are just two of the nine resources to include in your new-owner welcome kit. To learn more about What Should Be in Your New-Owner Welcome Kit and get tips on how to present the kit, see our new article. Go to article »

Best regards,
Matt Humphrey
President