In a Professionally Managed Condominium Corporation
A typical condominium corporation hires a Condominium Management firm to operate the condo corporation on behalf of the owners and directors. A professional condo management firm is licenced by the Condominium Management Authority of Ontario (CMRAO) and employs expert Condo Managers who themselves are licenced through the CMRAO. Condo Managers specialize in the management of complex operations including financial, regulatory, legal, and physical plant aspects of the condominium.
The workload of the condominium is divided between the Condo Manager and Board of Directors into two categories: operations and governance. Condominium Managers are responsible for the operations of the condo, assuring legal compliance and long-term planning, while the Board of Directors focus on condominium governance and other high-level tasks.
Board members do:
Complete the Condominium Authority of Ontario (CAO) - mandated director education course.
Regularly attend board meetings.
Prepare for board meetings by reviewing documents presented by the Condominium Manager for the board’s information.
Share thoughts and opinions regarding the operation of the corporation with the Condo Manager.
Bring ideas to the board and Condo Manager for discussion and implementation.
Ask questions of the Condo Manager when they don’t understand a certain element of the condominium’s operations or governance.
Represent the owners and use their best discretion to act in the benefit of all the owners.
Allow the Manager to manage owner communications, and when approached by owners regarding issues in the corporation, refer them to speak to the Condominium Manager.
Act as “reasonably prudent” board members would, including following the recommendation of engineers, lawyers, Condominium Managers, and other specialists.
Recognize that the Condo Manager is an individual with a private life and family obligations, and respect their time off of work.
Proactively disclose to the board and Condominium Manager any actual or potential conflicts of interest.
Board members do not:
Reach out to trades or contractors directly to plan or communicate work assignments, set schedules, ask for quotes, or arrange payment.
Post announcements to owners on behalf of the condominium, unless coordinated with the Condominium Manager to ensure consistent messaging.
Manage the day-to-day operations of the condominium corporation.
Do not approach owners directly to collect funds.
Condominium Managers are highly trained and educated professionals with the expertise and experience to manage the condominium corporation effectively. The Board of Directors are typically non-expert volunteers who are neither expected nor advised to take a direct involvement in the daily operations of the condominium corporation. The board must ensure that contractors and trades receive messaging and direction from one source only, i.e.: the Condominium Manager. Failing to do so often leads to work being done improperly, or without regard for the schedules of other trades. This may result in increased costs or additional legal liability for the corporation.
Written by Michael Trendota, MBA, CPM, RCM
President
Michael is a condominium management professional with experience working closely with condominium corporations, board members, and residents. Using his experience building and operating small businesses, he focuses on creating high-performing teams delivering excellent results to owners, residents, and partners. He has experience operating multi-location properties with large and diverse teams. Michael holds a Masters of Business Administration from Queen’s University, is a Certified Property Manager, a Registered Condominium Manager, and is a CMRAO licensed Condominium Manager.
Michael serves the condominium management industry in several additional capacities. He teaches Physical Building Management and Financial Management at Mohawk College. These two courses form part of the mandatory curriculum for condominium managers in the Province of Ontario. Michael also sits on numerous boards and committees, such as the Association of Condominium Managers (ACMO) membership committee, is a frequent guest speaker and lecturer at the Canadian Condominium Institute (CCI), among a variety of other engagements.
* Though written by a qualified and experienced Condominium Manager, this article is not intended as legal advice. Please consult your own experts for advice.
