The next few years will be very interesting for condominiums with limited or no reserves. While I'm sure many Boards are aware of what's to come, many need help understanding the severity or cost associated. As I mentioned last week, many Boards are still taking the wait-and-see approach, and they will soon be surprised that this was not a good decision.

Rates and costs have not let up, and we are in the midst of a recession. The culmination of all these factors will most likely converge together and create some hard times. As a community leader, you must have the foresight and stamina to understand what's coming to prepare your community and communicate the challenges.

Don't let this Budget or Annual Meeting season pass without having a town hall or communication sent to all the residents. Transparency always wins the game, but this year, you need to over-communicate what's coming and its impacts on your community. Owners must know so they can make the best decision, and if they cannot manage what's to come, they can decide to sell now before things get worse.

You will likely find many more terminations coming to our market, which is not necessarily bad. I've witnessed five terminations in my career, and each one of those associations came out winning. However, four years ago, those were different times with prime locations, but if an association can't repair its building, alternatives must step in. The last thing anyone wants is another tragedy.

If you are a board member and you are still determining if your owners can afford what's to come, you need to start conversations with your members about a possible termination. A committee could be put together to do some due diligence and understand what can and can't be done with your building. Some consultants can assist you with this process to better understand your property's actual value. In business, getting ahead of things is always better for making the most educated decision. If you don't do it this way, you will most likely be on the wrong side and not receive what you even though you may have a great location, zoning, rentability in the area, etc.

I'm a big believer that if you understand your challenges or limitations and don't focus on the negative but instead focus on finding solutions, you will have a higher probability of ending up in a much better place.