Risk Management

Despite some recent concerns over the safety of hot tubs, this amenity continues to be popular in many communities. The high temperatures that hot tub water can reach pose risks to some members, namely, pregnant women or people with high blood pressure. And hot tubs are unsafe for children both because of the heat and as drowning hazards. But that doesn’t mean that members whose health won’t be compromised by hot tubs can’t enjoy them.

This spring, you and your association are probably planning summer events that will give members a chance to have fun in the community and get to know their neighbors. Organizing events can also be a team-building experience for your staff and create goodwill between management and residents. It’s not all fun and games, however. Community-building events, such as pool parties or cookouts, may feature food and drinks, including alcohol. If the association serves alcoholic beverages at an event, it creates the potential for liability if someone is injured or killed as a result.

Fining members is one of the most unpleasant aspects of managing a homeowners association, but it’s unfortunately sometimes necessary to uphold the rules of your community. The administrative aspects of fining can be difficult. When members refute the fact that they owe fines or refuse to pay fines, the dispute can end in hard feelings or, worse, litigation.

If your condominium building uses heating oil as a fuel for furnaces or boilers, you should take steps to ensure that you aren’t paying for more oil than is being delivered to the building. Don’t fall prey to an unscrupulous oil company that might try to trick you or your management company about the amount of fuel that’s delivered to the building. A New York City commission recently found widespread heating oil fraud, with nine companies and 44 individuals indicted on multiple felony counts.

Safety hazards in the community you manage can result in, at best, minor accidents and, at worst, personal injury lawsuits. You and your staff should have a risk management strategy set up that covers all of the issues that could lead to liability for the association. The common areas in your community or condominium building are rife with risk—especially high-traffic common areas, which are used by not just members, but also visitors, and can get wear and tear or damage that could cause slips, trips, and falls.

Unfortunately, sexual harassment can happen in any workplace, including among members of your staff. In addition to wanting to make sure that your employees feel comfortable and not threatened at work, you also need to be concerned about sexual harassment because an employer can be held responsible if one of its supervising employees violates federal or state laws that prohibit sexual harassment—even if the employer was unaware of the violation.

As an association manager, inevitably you’ll be faced with a member’s complaint about some aspect of his unit. And if there is a difference of opinion as to whose responsibility—the member’s or association’s—it is to repair a problem, it could lead to a dispute that eventually turns litigious. A key issue in such disputes is whether the party suing the association has “standing”—that is, the power to sue.

If you’re like many association managers, you’ve been getting ready for a busy summer at the community you manage. Many members invite guests into the community and host seasonal parties or activities. There may even be association-sponsored summer fun. But it’s important during this time to keep the community operating smoothly by avoiding accidents and liability for the association during the months where there is extra usage of amenities.

With the proliferation of social media, YouTube, and photo-sharing websites, it may seem like personal information is everywhere—and easy to get. But in an era of what some people call “oversharing,” association managers need to remember that members still are entitled to some measure of personal privacy. You could be faced at some point with a member’s request for a membership list. Prepare yourself for this request by having a plan for protecting the association when it divulges that information.

Although many elderly members in your community are capable of living independently, sooner or later you may have an elderly member who has trouble coping with day-to-day concerns, such as managing money or keeping his unit tidy. An elderly member who has trouble coping may neglect normal upkeep in his unit. Oversights can lead to property damage and safety concerns. For example, the member may eventually stop cleaning, let his bathtub overflow, or leave the gas range on—putting himself, other members, and your condominium building at risk.