Cohousing-L Mailing List: Re: dealing with increasing costs and monthly dues?

[Sharon Villines (sharon]

> Re: short term rentals such as Airbnb- your liability and property
> insurance may not cover that type of rental activity so double check with
> your insurance broker to make sure you have coverage if someone gets hurt
> or they damage your building.  

When we had just moved in and were all starry-eyed and full of energy and 
wanting to share with all our neighbors we asked our lawyer how to handle 
“neighborhood” members who could participate in meal programs, use the 
workshop, etc. Our lawyer’s response was a question, “Then what kind of 
organization will you be? Legally you are a condominium. A residential group of 
owners with many common facilities. All that falls under condominium law and 
insurance. If you add these other features, what are you? A community center? 
Why don't we think about this while you get unpacked and get things organized.”

That made us think. We hadn’t even learned how to manage our building and were 
trying to expand to becoming a community center.

A long way around of saying in addition to the increased liability and cost, 
think about how the change will define the community. The community's attention 
will be diverted with amy new program — rentals, Air BnB, etc. — and the 
definition of who you are will change. You will also be trading labor for 
money. All these things may take more out of you than they put in.

> Re: charging for not doing participation - that could run afoul of your
> state’s labor law and condominium/HOA law. 

This is a whole ball of yarn itself. And very complicated. What is your core 
belief? When shared work is the objective, charging by the hour changes the 
equation. What has worked well for us is when people have made contributions 
for periods of time when they are away or exceptionally busy.  One person who 
took a month’s vacation every year paid her weekly household help to clean the 
CH. Another contributed boxes of toilet paper because we were always running 
out. Voluntary. What worked for people.

I would suggest looking at your programs and the expenses on the same sheet of 
paper — these tend to get separated. One team knows how much things cost and 
another one plans the programs and another handles facilities contracts.

Think about what you want and scale back costs rather than expanding the 
“business” because business isn’t your aim. Can you fund things differently.

An MBA who later became a financial planner also advised me not to try to get 
the community to cut out a lot of small things but to look at large things. If 
you cut the budget in small amounts you spread the pain. Everyone will be 
unhappy because everything will be cut. Better to reconsider the plan and learn 
what specifically isn’t “paying for itself” or “giving as much satisfaction as 
it costs" and how you can change that.

Sharon