What Qualifies as Condominium Inventory and Chattel Property?
Definitions
Inventory: Items owned by the condominium corporation that require tracking, such as:
Maintenance supplies (cleaning products, tools, HVAC filters).
Equipment (generators, security cameras, landscaping tools).
Furniture and fixtures (lobby chairs, gym equipment).
Chattel Property: Moveable personal property owned by the corporation, such as:
Office computers and filing cabinets.
Vehicles or maintenance carts.
Under Section
The Importance of Tracking Assets, Equipment, and Maintenance Supplies
Why Inventory Control Matters
Financial Accountability: Ensures that assets are purchased, used, and replaced efficiently.
Legal Compliance: Provides accurate financial reporting for audits and reserve fund planning.
Security & Loss Prevention: Reduces risk of theft, damage, or unauthorized use of corporation property.
Operational Efficiency: Ensures staff have access to necessary supplies without unnecessary delays.
Implementing Security Controls to Prevent Theft or Misuse
Key Security Measures for Inventory Control
Access Control: Restrict access to storage areas for maintenance staff only.
Inventory Tags & Serial Numbers: Assign unique identifiers to high-value equipment.
Check-Out System: Maintain records when employees or contractors borrow tools or equipment.
Regular Audits: Conduct periodic inventory checks to verify asset location and condition.
Clear Policies: Establish penalties for misuse or unauthorized access.
Example: A condominium manager discovers that maintenance tools are frequently missing. By implementing an inventory log system, the corporation can track who last used each tool and reduce losses.
Best Practices for Record-Keeping and Reporting on Inventory Usage
How to Maintain Inventory Records:
Create a Master Inventory List
Record all assets, purchase dates, and expected lifespan.
Note replacement costs for budgeting purposes.
Use an Inventory Tracking System
Consider digital tracking software for automated updates.
Maintain a manual log for smaller properties with fewer assets.
Schedule Routine Inspections
Assign staff or board members to inspect equipment quarterly.
Track wear and tear to determine replacement timelines.
Keep Financial & Legal Records
Store purchase receipts, warranty documents, and insurance policies.
Ensure board meeting minutes reflect major inventory decisions.
