During the late 1970s the idea of condominium ownership became very popular in the United States. Builders constructed new condominiums at a rapid pace, but there were not enough to fill demand. Soon enterprising developers found that existing apartment buildings could be converted to condominiums and sold to the waiting public. Compared to new construction, a condominium conversion is often simpler, faster, and more profitable for the developer. The procedure involves finding an attractively built existing building that is well-located and has good floor plans. The developer does a face-lift on the outside, adds more landscaping, paints the interior, and replaces carpets and appliances. The developer also files the necessary legal paperwork to convert the building and land into condominium units and common elements.
A potential problem area with condominium conversions, and one that a prospective buyer should be aware of, is that converted buildings are used buildings that were not intended as condominiums when built. As used buildings, there may be considerable deferred maintenance, and the building may have thermal insulation suitable to a time when energy costs were lower. If the building was originally built for rental purposes, sound-deadening insulation in the walls, floors, and ceilings may be inadequate. Fire protection between units may also be less than satisfactory. In contrast, newly built condominiums must meet current building code requirements regarding thermal and sound insulation, fire-wall construction, and so forth.
It is worth noting that not all condominium conversions are carried out by developers. Enterprising tenants have successfully converted their own buildings and saved considerable sums of money. It is not uncommon for the value of a building to double when it is converted to a condominium. Tenants who are willing to hire the legal, architectural, and construction help they need can create valuable condominium homes for themselves in the same building where they were previously renters.
