“Board Member Basics: Roles, Responsibilities, and Relationships” – KSN attorney Kerry Bartell discusses the crucial pieces needed to run a successful community association board. She reviews board member roles, duties, chemistry, and more. (17 mins.)
The KSN Podcast examines various aspects of association law, landlord/tenant issues, property tax appeals, and more. In each episode, KSN attorneys share their experience and knowledge as they discuss legal updates, best practices, industry trends, and more. KSN Podcast episodes are available at www.ksnlaw.com/podcast.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
For more info about our law firm and legal services, please visit www.ksnlaw.com
Subscribe to the KSN Podcast where podcasts are found including:
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
For more info about our law firm and legal services, please visit www.ksnlaw.com.
Episode Transcription
Nikki: You’re listening to the KSN podcast and today we’re talking about board member roles and relationships. Welcome to the KSN podcast where you’ll hear from KSN attorneys as they share their experience and insight on legal issues surrounding community associations, collections, property tax appeals, and landlord tenant law. I’m Nikki and today we’re joined by KSN attorney Kerry Bartell. Kerry is a highly accomplished attorney, practicing condominium, townhome, and homeowner association law in Chicago and the surrounding suburbs for over 20 years. She is a principal at KSN, former board member and president of the Illinois Community Association Institute or CAI, and a frequent speaker at industry trade shows, trainings, and seminars on association living. Welcome to the podcast, Kerry.
Kerry: Hi, Nikki. Great to be here.
Nikki: Our topic today is board member roles and relationships, and for anyone who has been on a community association board knows that understanding what your duties are along with having good communication amongst your fellow board members is essential to success.
Kerry: That’s right Nikki. Unfortunately, too many people take on this responsibility without learning what the job entails. So truly understanding what goes into each role and being able to communicate to your fellow board members in an effective way will make having this second job much more enjoyable.
Nikki: So today let’s split the podcast into two sections. In the first half, we will discuss the different roles each community association board can have. And then in the second half, let’s talk about how to effectively communicate between those different roles. So let’s jump right into it Kerry. There are typically four main board office positions. You have a president, vice president, treasurer and secretary. Can you please describe to our listeners what the main duty of each of these roles are?
Kerry: Let’s start with the president. The main responsibilities of an association president might include overseeing and handling procedural duties, understanding the association’s governing documents and how to run an effective board meeting, calling the meeting to order, calling for votes and even maintaining attendee decorum.
Nikki: And how would you say a vice president’s duties differ from the president’s?
Kerry: The vice president is responsible for ensuring flow of business, serving as a source of rules, bylaws and governing documents, and also to act as the president when the president is unable to perform their procedural duties. The vice-president should be just as involved as the president in the rare case that the president cannot fulfill their duties or is absent for a particular meeting.
Nikki: Let’s move on to the treasurer. Kerry, what would you say is the biggest responsibility in this position?
Kerry: For the treasurer, I would say that they are responsible for the associations funds, securities and financial records. They also need to oversee billing, collections and the association’s budget, and also ensure that funds are collected, dispersed and invested properly while following the bylaws and governing documents. I’ll also note that even if the association has a professional management company that’s actually doing the day-to-day work on the financials, it’s still the responsibility of the treasurer to be the fact-check and oversee what the property management company is doing.
Nikki: What are the key areas that a secretary is responsible for?
Kerry: The secretary is responsible for recording meeting minutes, maintaining the official records and updating the documents as required. Again, often the management company will do this for you. The secretary should be that second check. They also need to post meeting notices agendas and meeting minutes. They also confirm that the association meets all legal documentation requirements.
Nikki: And so, as you were mentioning property management companies, associations can also have the guidance from those property managers and legal counsel. Can you explain how these two groups can be beneficial for a community association?
Kerry: Sure. The property manager’s role in an association can include assisting the board in determining and collecting rent helping with tenant screening, advising the board on budget and budget management, managing repair projects and maintenance issues, and also overseeing move-outs as well as vacant properties.
Nikki: And what can legal counsel do for a community association?
Kerry: A legal council’s main responsibilities include helping the board members to understand their rights and responsibilities. We draft and revise association governing documents, and we advise on legal issues. For example, reviewing vendor contracts of violation enforcement and letters of opinion.
Nikki: Every position on the board seems equally as important as the next. Is there any kind of advice that you would give for current or future board members?
Kerry: Board members who are elected to represent their association carry a weight on their shoulders certainly, to ensure that they are acting in the best interest of their fellow neighbors. When holding an office position, it’s good practice to follow these three duties. You have a duty of care, you have a duty of loyalty and you have a duty to act within the scope of your authority as a board member and keep in mind that association unit owners and residents depend on the board members to make informed decisions, to act fairly and in good faith, and also within the scope of their delegated authority.
Nikki: It appears that being a good board member means truly following through on those three duties. What else do you believe can make somebody a good board member?
Kerry: I think like any other job serving as a board member does require education and training. Like I had mentioned earlier, unfortunately, too many people take on this responsibility without learning what the job entails. New board members can get elected on the board with certain expectations and goals that they would like to accomplish. However, it’s important to do the necessary homework, to become a confident and contributing member as a whole. Generally, I like to focus on the following basic primers that I think are necessary to becoming a contributing member of a board. First and foremost, be familiar with the operating documents, go over the association’s declaration, the bylaws, your rules and regulations and also then any statutes that apply to your association. Understanding the bylaws I think is critically important because that is the number one way in which boards get in trouble, is that they don’t follow their own operating procedures and requirements for the association. Report violations through the appropriate channels, often we get board members that want to be a helpful neighbor and say that they’ll handle violations on some neighbor’s behalf, that can get them into some trouble. Maintain familiarity with state and federal laws, there are constant changes within case law that affect associations, for example, the [Inaudible:07:03] case gave us some insight on how to conduct board meetings, but then there’s also statutory changes both at the state and federal level. Become familiar with financial statements and how to read your budget I think that that is often confusing for new board members as well. Also, there’s a number of sort of outside resources that board members can tap into, which I think are extremely helpful. One is to subscribe to industry newsletters to stay current with changes and trends. There’s associations such as CAI and ACTHA who do a phenomenal job of providing resources.
Also there’s constantly seminars available to learn new strategies. We’ll do a shameless self-plug, KSN does a number of seminars, but there are also industry seminars by CAI and ACTHA. Also check out any of the industry trade shows, I think are very helpful. I would also recommend that you meet with the new board members and inform them of any current issues and always these keep in mind that you represent the interests of the entire association. Membership on a board is a serious responsibility and should not be taken lightly. New board members should learn that they need to attend all meetings, review the materials, be attentive to your communities or concerns, ask questions and work through established procedures. I think these actions will help the board efficiently operate the association and affect change where needed
Nikki: Kerry and I are going to take a quick break, but when we get back, we’ll discuss the communication and quote unquote chemistry that’ll be needed between board members in order to be successful.
Michael: I’m attorney Michael Kreibich and I’d like to ask if you’ve downloaded the KSN app. Here are some of the apps features; 24/7 real-time access to KSN’s collection status online portal featuring updates on active collection, foreclosure and landlord tenant matters, articles and booklets authored by KSN experienced association, tax and landlord tenant attorneys, access to our schedule of upcoming educational events and you can view snapshot profiles of all KSN attorneys with contact info and mobile accessibility. The KSN app is now available for free download in the iTunes app store for your iPhone and iPad. The app is also available for free download in the Google play store for your Android phone or Android tablet, just search for Kovitz Shifrin Nesbit. We invite you to download the KSN app and learn what our law firm can do for you. We look forward to demonstrating how Kovitz Shifrin Nesbit has earned the trust of thousands of clients over 30 years.
Nikki: And we’re back. I’m here with attorney Kerry Bartell and we’re discussing chemistry among board members. Chemistry amongst people is hard to master, and it is all about how you build and cultivate the relationships around you. Most of what you do throughout your day involves relationships and how you manage them.
Kerry: You’re certainly right, Nikki and associations are no different and even more so if you are a member of the board of directors. The chemistry amongst the board members can significantly impact how the association functions, whether good or bad. The tricky part of being on a board and the relationships that are involved is that all the board members are neighbors, but they must work together in order to run a business.
Nikki: And if you don’t mind, Kerry, I’d love to hear your insight on the five basic rules to ensuring that the chemistry between the board members is productive. Starting off with the first one, respect each other, plain and simple.
Kerry: This is one of my favorites. All association boards are comprised of at least three people, if not five or seven or more. Board members are elected by the owners to represent their collective interests and act on their behalf. There’s no rule that all board members must have the same opinion or perspective. In fact, the point of a multi-person board is to foster differing perspectives and opinions. Owners are given the opportunity to elect all of the board members so that their differing opinions can be represented. A board works best if it has differing opinions from its members to fully discuss the issues that are before it, and to make an informed decision. This is not to say that some issues won’t evoke a unanimous opinion or perspective. The point is that you have multiple board members with their own opinions for those issues that may require a discussion. Each issue is different and each association must address different issues.
Nikki: Let’s move on to number two, listen to each other.
Kerry: This goes a long way with respecting each other, as you can’t really have one without the other. Don’t interrupt, let everyone speak if they wish and hear what each person has to contribute. Too often, we are so quick to get our point across that we don’t really listen to what the other person is saying. I particularly have to work on this. So you can still have a heated debate, but debates are even more productive and more satisfying if you understand and appreciate what the other side is saying. You may even find that they have a valid argument. Compromise is also a common outcome from listening to each other and each side of the debate, which can foster further positive chemistry for the board.
Nikki: You know, I’d have to agree with you Kerry. A lot of the times we’re just listening to people, but are we actually hearing them. Let’s move on to number three, follow directions.
Kerry: The chemistry of the board relies solely on the actions of each of its members. When you are a member of the board, you do have a fiduciary duty to the board and the rest of your owners. This means that you are obligated to act in the best interest of everyone, not just yourself. Further, as I mentioned earlier, every board member is bound to act at the direction of a majority vote of the board. Individual board members who act outside of the direction of the board, whether unintentionally or intentionally cannot only negatively impact the chemistry of the board, but also can expose themselves and the association to liability. A rogue board member can stress the relationship of the board members and derail the business of the association. It can also end up costing the association a lot more money in attorney’s fees because we have to then control that board member and sort of rehabilitate the functioning of the board.
Nikki: Moving on to the second to last one, number four, tell the truth no matter how much it hurts.
Kerry: This one may seem self-evident, but unfortunately this issue arises from time to time. As with any relationship board members must be able to trust each other. In some associations board members are handling million dollar or more budgets and property values into the multi-millions. For almost all owners, their home is their single largest asset and the one they want to most fiercely protect. So board members must be able to trust each other and the owners must be able to trust the board as a whole. Board members need to keep in mind that they are running a business and withholding information or undermining the work of the board by not contributing information can negatively affect how the board and the association operate.
Nikki: Last, but certainly not least and I think maybe something that we always all forget, we need to remember to always have fun.
Kerry: Yeah. This one I think is critical. I believe one of the most important things that a board can do to improve chemistry is to try to have fun while handling the hard business of the association. Enjoy your fellow board members, find something that you can appreciate about them and that you may have in common with them. If you are positive in your approach as an individual board member and your board has a positive approach toward your members, you will find that the tough decisions become a little bit easier.
Nikki: So Kerry, what do you recommend association board members or property managers who might be looking for a little bit more guidance?
Kerry: Many people say that being on a board is a time-consuming difficult and thankless second job, and it can be yet the vast majority of owners who serve on their boards take that job seriously to make sure that the property and their members have the best community. If board members can foster positive chemistry on the board, it will make that second job more enjoyable and productive. More importantly, it will make your community a more marketable, nicer place to live.
Nikki: That was KSN principal attorney and Kerry Bartell. Kerry has been practicing condominium, townhome and homeowner association law in Chicago and the surrounding suburbs for over 20 years. KSN is an experienced legal resource ready to provide you with quality advice and exceptional service. We look forward to demonstrating how we have earned the trust of thousands of clients over the past 35 years. If you’d like to reach Kerry or any of KSN’s experienced attorneys, please call (855) 537-0500. You can also visit ksnlaw.com and complete the contact form to send us a message. Thanks for listening.
Outro: The music for the show is brought to you by freepodcastthemes.com. Please note that the material contained on the KSN podcast is for informational purposes only and does not constitute legal advice. No attorney client relationship is established by your review or receipt of the information contained on the KSN podcast. You should not act on the information discussed on the KSN podcast without first obtaining legal advice from an attorney duly licensed to practice law in your state. While Kovitz Shifrin Nesbit has made every effort to include up-to-date information on the KSN podcast, the law can change quickly. Accordingly, please understand that information discussed on the podcast may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete, or up-to-date. Kovitz Shifrin Nesbit reserves the right to revise or update the information and statements of law discussed on the podcast at any time without notice and disclaims any liability for your use of information or statements of law discussed on the podcast or the performance of the podcast generally. KSN podcast may be considered advertising in some jurisdictions under applicable laws and/or ethical rules and regulations.
Please note the material contained on the KSN Podcast is for informational purposes only and does not constitute legal advice. No attorney-client relationship is established by your review or receipt of the information contained on the KSN Podcast. You should not act on the information discussed on the KSN Podcast without first obtaining legal advice from an attorney duly licensed to practice law in your State. While KSN has made every effort to include up-to-date information on The KSN podcast, the law can change quickly. Accordingly, please understand that information discussed on the podcast may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete, or up to date. KSN reserves the right to revise or update the information and statements of law discussed on the podcast at any time, without notice, and disclaims any liability for your use of information or statements of law discussed on the podcast, or the performance of the podcast generally. The KSN Podcast may be considered advertising in some jurisdictions under applicable law/s and/or ethical rules/regulations. © 2020 Kovitz Shifrin Nesbit, A Professional Corporation.