FOLLOW PROCESS TO EVICT TROUBLESOME TENANTS
Boards can legally levy special assessments but such steps are best used sparingly
Q: We have had more than one bad or disruptive tenant in our condo complex, specifically the rental units. At the last Annual General Meeting our board manager stated that there is nothing that can be done, other than to call the police and notify the board. What else can we do to deal with, and restrict, bad tenants?
A: There is more that you can do. First, you should write a letter to the owner of the unit advising them that their tenant is causing problems for fellow occupants. The letter should set out the particulars of the complaint. If the owner fails to deal with the issue, then the board could issue a notice of eviction and serve it on the tenant and owner of the unit. Generally, you would give the tenant 30 days to vacate the unit. If the tenant fails to leave the unit, then you would need to make a court application to get a court order evicting the tenant. The court order would require evidence in support of it, and someone on the board would swear an affidavit setting out the particulars. This process is used often and can be an effective tool in dealing with bad tenants. Helpful hint: It is important that boards follow the incremental approach in dealing with bad tenants. Do not start a court process without first giving the tenant the opportunity to rectify or remedy their behaviour. The courts need to be assured that the corporation has followed due process in seeking a court order.
Q: Our small bareland condo association has had water seep through the basement walls in four units. Damage has been limited on the inside, but the walls need to be fixed at quite a cost. The association is of the opinion repairs are not the association’s responsibility. Who should pay?
A: As a bareland condo, the starting point would be that the owner would be responsible for the walls. However, some bareland condominiums have what is called “managed property.” You need to review your bylaws to determine whether any of the owner’s responsibilities have been delegated to the condominium corporation. If the responsibility of the walls was delegated to the condominium corporation, then it would be the responsibility of the condominium corporation to repair. Unfortunately, without the benefit of your bylaws, I am unable to give you a definitive answer on this question.
Helpful hint: When an owner is faced with some uncertainty as to who is responsible for the repair work, it would be helpful for the property manager, the board, or legal counsel for the condominium corporation to provide a written explanation to an owner so that there is some understanding as to the process.
Q: I live in a 30-year-old condo building that will require many maintenance expenses over the coming years. There have been three special assessments in the last five years, two of which were for projects that the board knew were forthcoming. Previous boards had decided that these projects would be mainly funded by issuing special assessments to the unit owners as they come up, rather than raising condo fees to build the reserve fund to meet these expenses. I thought it was required by condo boards to plan for known future building repairs/projects by setting aside money from condo fees to cover repairs that are foreseen, rather than simply issuing special assessments as needed. Is the board planning things correctly?
A: There is a requirement that a condominium corporation conduct a reserve fund study every five years. The purpose is to determine what repairs or maintenance work is required for the condominium corporation, so that it can budget accordingly. A well-managed condominium corporation would charge owners what is needed to operate on a day-to-day basis, plus an additional sum to put aside for future capital repairs. There is nothing illegal about issuing special levies, as opposed to collecting money over time and putting it aside. The problem with special levies is that it hits owners with significant payments and places some owners in a difficult financial position. I think the rationale for issuing special levies is that the board is trying to suggest that those who own a condo at the time the money is needed should pay, as opposed to owners paying for repairs five to 10 years into the future that they may not derive a benefit from. I think that kind of thinking is short-sighted, but legal.
Helpful hint: A well-managed condominium corporation meets its day-to-day obligations, plus it puts money aside for future capital repairs. Special levies should be used sparingly, but they are a tool available to a board when money is needed.