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Looking for top insights and stories tailored for condo owners, residents, board members, property managers, and real estate pros? Your wish is granted! Every week, we're here to help you unlock the secrets of condo living, buying, selling, and saving.

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In today’s edition:

• Condo Board Scandal: $800K Lawsuit Filed by Toronto Owners

• Supercharge Your Property Management Portfolio

• The Fine Art of Ousting a Toxic Condo Board

• 2024 Housing Market Predictions: What Homebuyers Need to Know

• Relief for Renters: Win $1,000!

• Luxurious Ritz Carlton Residence

• Everything Else You Need to Know

NON-FLUFF NEWS AND STORIES (August 19th-26th)

Condo Board Scandal: $800K Lawsuit Filed by Toronto Owners

What’s happening? Condo owners at Five Condos in Toronto have filed a lawsuit against former board members, alleging they siphoned off hundreds of thousands of dollars from the building’s budget. The owners are now on the hook for a $750,000 special assessment to cover the losses.

What’s the backstory? The lawsuit claims that in 2016, a group of individuals forged ballots and took control of the condo board. Once in power, they allegedly misused their positions to funnel money into businesses they or their associates controlled, leaving the building in deep financial trouble.

Why should you care? This scandal underscores the importance of transparency and vigilance in condo management. If you’re a condo owner, staying informed and involved in board activities could help prevent similar situations. The financial health of your building directly impacts the value of your unit and your living experience.

Who’s involved? The former board members being sued include Darryl McGregor, Ray Blanchard, George Lazcko, and Anastasia Mustafina. These individuals allegedly managed to infiltrate multiple condo boards across Toronto, leading to widespread financial mismanagement.

What’s next? The owners at Five Condos are now facing the challenge of repairing the building’s finances. A criminal investigation by the Toronto Police financial crimes unit is also underway, potentially leading to further legal action against the involved parties.

Supercharge Your Property Management Portfolio

What’s the strategy? Growing your property management business in today’s market is all about leveraging the resources you already have. Here are some key ways to expand your portfolio.

Start with Existing Clients: Your current landlords could be your best bet for growth. By building trust and delivering excellent service, you can discuss managing additional properties they own. A well-timed conversation, particularly at the start of a financial or calendar year, can open the door to consolidating their portfolio under your management.

Tap into Your Network: Don’t overlook your personal connections. Casual conversations with friends, family, and even tradespeople can lead to unexpected opportunities. Real estate is always a hot topic—listen for hints that someone might need your property management services.

Align with Your Sales Team: Make sure your sales team is referring potential investors to you. Investors often slip through the cracks when the focus is solely on closing deals. Regular check-ins with your sales team can ensure you're capturing all possible leads.

Boost Your Online Presence: In today’s digital age, a strong online presence is crucial. Utilize online testimonials, Google reviews, and LinkedIn to build your personal brand and establish yourself as a trusted voice in property management.

The Fine Art of Ousting a Toxic Condo Board

The Situation: A Manhattan luxury condo is facing serious issues—disrepair, a long-standing board president, and no quorum at annual meetings for a decade. Questionable contractors are awarded work, and the board has imposed a $100 fine for any internal correspondence criticizing their actions.

Your Options: Under New York’s Condominium Act, unit-owners can remove a board member by calling a special meeting through a petition. This may be your best bet since challenging the board in court is difficult due to the business judgment rule.

Taking Action: If the board acts with gross negligence or bad faith, like imposing fines for distributing communications, you might have a stronger case. Unit-owners can request contact lists to gauge support for a change. Be prepared to sign a nondisclosure agreement to access this list.

The Nuclear Option: Filing a lawsuit against the board for breaching fiduciary duty is an option, but it's costly and time-consuming. For quicker results, you could ask the court to appoint a receiver to oversee building operations, safeguarding your investment.

Final Thought: Whatever route you take, ensure it aligns with your condo’s bylaws and state law to withstand legal challenges. Expect resistance from the board if you pursue removal efforts.

MARKET UPDATE THAT’S EASY TO UNDERSTAND

2024 Housing Market Predictions: What Homebuyers Need to Know

1. Current Home Values & Mortgage Rates:

   • Average Home Value: $362,481 (July 2024)

   • Average 30-Year Mortgage Rate: 6.85%

2. Market Trends Influencing Housing:

   • High Mortgage Rates: Contributing to affordability issues but may decrease later in the year.

   • Low Housing Inventory: The U.S. is 4.5 million homes short, keeping prices high.

3. 2024 Housing Market Predictions:

   • Home Prices: Expected to rise further, with predictions ranging from a 3.8% to 6.1% increase.

   • Mortgage Rates: Likely to trend down, with rates potentially dropping to around 6.6%-6.7% by the end of the year.

Actionable Insights for Homebuyers:

1. Financial Preparation:

   • Improve credit and save for down payments.

   • Explore affordable mortgage programs and down payment assistance.

2. Timing Considerations:

   • Best rates may appear later in 2024 or even in 2025.

   • Consider waiting if you’re not financially ready.

Long-Term Outlook:

• “Silver Tsunami” Impact: Potential increase in housing supply as baby boomers age out of their homes, easing competition for buyers, though this effect may take a few years to manifest.

Source: Business Insider

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Relief for Renters: Win $1,000!

In response to Canada's rising cost of living, liv.rent is offering five lucky renters a chance to win $1,000 each in cash. If you're an eligible renter in Canada, don't miss out on this opportunity to get a break on your rent. Simply sign up through the link provided!

A PROPERTY THAT CAUGHT OUR EYE

Luxurious Ritz-Carlton Residence

• Price: $2,049,000 | 1 Bed, 2 Baths | 1,675 sqft

• Bright corner suite with stunning northeast city views.

• Private elevator access, designer Bellini kitchen with Sub-Zero, Wolf, and Miele appliances.

• Spacious living area with gas fireplace; luxury bedroom with spa-like ensuite.

• Access to 5-star hotel amenities: concierge, valet, spa, fitness center, and more.

Own a piece of luxury at $1,223/sqft.

EVERYTHING ELSE YOU NEED TO KNOW

Scrolled this far? Enjoy these exciting bonus bits!

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Non-Resident Tax for Owners of Rental Property: Confused about non-resident tax in Canada? Discover what it means to be a on-resident and how to fulfill your tax obligations.

The Ultimate Guide to Subletting for Renters and Landlords: Discover the must-know tips for renters and landlords in B.C., Alberta, and Ontario—don’t miss out!