Property management companies
It is general practice of a Boards of Condominium Corporations to hire Property Management companies as agents in order to assist and fulfill responsibilities of building management and ensure that the interests and needs of the tenants of the building are satisfied. These Property Management Companies ensure that the everyday operations and interests of the Condominium Corporation and building are met and secured. The tasks of Property Management companies include:
- Employment of property managers and service contractors;
- Oversight of administration meetings of owners, regular board meetings, and the issuance of notices in a timely and appropriate manner;
- Determining and Administering any repairs and maintenance needed to the assets of the Condominium Corporation.;
- The management of reserve funds and deciding if any investments should be made;
- The preparation of financial reports;
- Filing the Condominium Corporations tax returns;
- Responding to and appropriately dealing with any complaints by the tenants, owners or employees etc. of the building;
- Acquiring Insurance and the Maintenance of the Insurance premiums for the condominium corporation;
- Preparation and issuance of status certificates;
Condo property managers
Property managers are generally hired by the Property Management Companies in order to assist with the abovementioned duties. Following are the additional duties of the property managers;
- Taking appropriate and timely measures to deal with any minor repairs and maintenance relating to the building;
- The supervision of any other contractors;
- Maintaining appropriate and necessary communication with the condo management company and the board of directors.
- Working in cooperation with the Condominium Home Owners association if one is established.
- Handling any minor disputes between tenants or Condominium unit owners and deferring them to the Property Management Company when required and/or necessary.
- Other duties such as collecting monthly condominium maintenance fees, calculating the operational budget of the Condominium building or hiring service suppliers and/or contractors may also be delegated to the Property Manager;
Requirements to provide management services
It is relevant to Condominium Corporations to keep in mind the legal requirements to hiring qualified property management companies. As per the Condominium Management Services Act as administered by the Condominium Management Regulatory Authority of Ontario (CMRAO) requires that the Property Management Companies be licensed and adhere to regulatory code of ethics;
1. Condominium Management Regulatory Authority of Ontario (CMRAO) Property Management Licence;
In order to become a condo manager in the Province of Ontario an organization or individual must obtain a license issued by the Condominium Management Regulatory Authority of Ontario. There are various categories of licenses and differing fees apply;
- A General Licence is issued for an individual who has provided Condominium Management services for two or more years within the previous 5 years and has completed the required education. The fee for the General licence is $607
- A Transitional General Licence is issued for an individual an individual who has provided Condominium Management services for two or more years within the previous 5 years and has not completed the required education. The fee for the Transitional General licence is $607 as well.
- A Condominium Management Provider License is issued to business and firms who seek to provide or have been providing management services to Condominium Corporations. The fee for a Condominium Management Provider Licence is $799
- A Limited Licence is issued for an individual who has provided less than two years or 2,920 Hours of Condominium Management Services over the past 5 years. Commencing the 30th of January 2018 this type of licence will no longer be valid and/or issued to individuals and must be held by a licenced Condominium Management firm. The fee for a Limited Licence is $379
All of the abovementioned Condominium Licences are renewable annually by June 30th.
2. The Code of Ethics regulation;
The code of Ethics Regulations seeks to satisfy three basic objectives;
- Establish and maintain a standard of good practice;
- Govern the behaviour of professional Condominium management; and
- Regulate the quality of service, reliability and professionalism of Condominium Management;
A violation or breach of the ethics regulations are to be reviewed by a disciplinary committee. Appeals can be brought in front of an appeals committee
Rules and obligations of licensed condo managers;
The Condominium Management Services Act provides a number of rules, regulations and obligations which are applicable to licensed condominium managers as well as management firms. Dependant upon the type of the licence held the rules which apply differ, nevertheless the rules include;
- A Condominium Manager can only be employed by one Condominium Management firm except or unless written consent is obtained from all the firms they are employed by;
- Condominium Managers holding a General or Transitional General Licence holders can only be directly employed by a maximum of three firms;
- Condominium Managers are required to carry their latest Certificate of licence in the course of their duties and present or produce it upon inspection or the request of any person;
- An address for service must be maintained by all Condominium Management firms and Condominium Managers with the Condominium Management Regulatory Authority of Ontario;
- All licenced Condominium Managers are required to have a written contract in place detailing their services with the Condominium Corporation. The Licenced Condominium Manager must act within and not provide services outside those detailed in the contract; etc.
For more information please contact one of our experienced Real Estate Lawyers at MEHDI AU LLP.
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