Should condo builder manage property?
Q: We recently took possession of our brand new condo. We completed our turnover meeting and have elected new directors into office. Our builder has approached us and is offering his services to continue managing our condo corporation. The other directors and I are not sure about this type of arrangement. We do have experience as directors but we’re not sure we’re comfortable with the builder as the property manager. A: Duties will vary from one condo corporation to another. How much experience does this developer have? Has she or he been doing a good job up to this point? The Condominium Act does require the board of directors to manage the property and assets of the corporation. However, in most cases this is a very daunting task that is usually delegated to a property manager in order to help guide the directors.
How much work do the directors want to take on? Some managers, will manage just the physical property. Others will organize owner’s meetings, take care of the financial side and much more.
It’s really important to confirm what your responsibilities will entail as well as those of the developer/ property manager. Be sure to have the condo lawyer review any management contract set up between the board and the developer. It’s imperative to include a clause stipulating that the board’s able to terminate the agreement within a reasonable time. Things may not go the way you anticipated and therefore you may want to seek out another property manager.
Keeping the builder/developer on as your property manager will require a lot of careful consideration. First and foremost the directors must decide whether or not you are happy with the current management skills of the builder up to this point. If you are happy then maybe this is a done deal. Only time will tell whether you made the right decision.
Marilyn Lincoln is a condo owner, director and author of The Condominium Self Management Guide 2nd ed. Email marilyncondoguide@hotmail.com with questions.