Common Element Repairs Service Standards
Why should a condo board and condo manager agree on a common element repairs service standard? Let’s look at an example:
Yorkville Heights is a hypothetical high-rise condominium in Toronto’s Yorkville neighborhood. Units are in the multimillion-dollar range and cater to an affluent owner base. These owners are concerned with the attractiveness and appeal of the building and care a great deal about the impression given to visitors.
Metro Flats is another hypothetical high-rise condominium, located in Toronto. These units are geared towards first-time homebuyers and renters. Cost is a high concern to the owners of these units. They want the building to be attractive, but they also want fees to be kept as reasonable as possible.
A hypothetical scenario: sometime overnight, a crack appeared in a floor tile in the lobby. The crack is safe, but visible to occupants. It is not immediately jarring and unsightly, but it is visible.
What this means for Managers
A condominium manager is constantly making trade-offs and considerations. There are usually many ways of solving a challenge, and different costs to each option.
In our hypothetical example, the cracked floor tile is not an emergency as it is not a tripping hazard. This eliminates any need for immediate action on the part of the manager. However, the manager has three options:
Replace the tile as part of a lobby refurbishment in several years.
Wait until there are several similar issues and call in a contractor to make the repair at that time.
Immediately call a contractor to replace the cracked tile.
Option 1 is the cheapest solution, and would be paid entirely from the reserve fund. Option 3 would be the most expensive, and would be paid out of the operating account. Option 2 is a compromise of the two. It would also be paid out of the operating account, but lumped in with similar repairs it would become cheaper than Option 3.
Which option should the manager select?
All three options are reasonable solutions, but which choice the manager selects depends entirely on the expectations of the owners and board. In our example of Yorkville Heights and Metro Flats, the choices are likely: Option 3 (immediate repair) for Yorkville Heights, and Option 1 (wait for refurbishment) or Option 2 (wait for more repairs) for Metro Flats. In most cases however, the will of the owners and board is not quite as clear cut, and these types of issues can come up daily for large corporations.
Which option should the manager select?
In order to make sure the board’s wishes are known and understood, we at Alwington recommend that the board and manager have a discussion around service standards. The board should agree on a level of service that they are comfortable with. This will give the manager some idea of how aggressively to pursue repairs, and how to make trade-offs on behalf of the corporation.
In order to accomplish this, we recommend that the manager present a few scenarios to the board and ask them to agree on a choice. When 5-6 of these scenarios are played out, the manager will have a clearer understanding of the board’s thinking, and can write these ideas into their standard operating procedures. These scenarios can be saved as part of the meeting minutes, and referred to in the future in order to help make decisions.
Written by Michael Trendota*, RCM
Chief Operating Officer of Alwington Communities
Michael is a property management professional with experience operating a diverse set of buildings, including high-rise, low-rise, and townhouse-style. His passion is bringing neighbors together to build exciting and vibrant communities. Michael draws from his own condo board member experience to advise board members on the opportunities and challenges facing their communities. Michael holds a Masters of Business Administration from Queen’s University and is a Certified Property Manager.
* Though written by a qualified and experienced Condominium Manager, this article is not intended as legal advice. Please consult your own experts for advice.
