Property Management Company vs. Homeowners’ Association commonly known as: (Condominium Association)

1. Property Management Company vs. Homeowners’ Association commonly known as: (Condominium Association) With the increasing number of people purchasing condominium units in the GTA, and calling these communities home. It is important to be able to differentiate what is a homeowners’ association and what is a professional property management company. If you are new to a condominium or townhome communities, this article will help you understand how the responsibilities are divided between the board of directors and the property management company. Homeowners’ Association commonly known as: (Condominium Association) The definition of homeowners’ association (HOA) is a group of individuals who purchased a property on communal land, together they form a community and share the expenses associated with maintaining the community, typically owners pay an

2. equivalent $ per square ft of the condominium. This community elect members during their annual general meeting to govern for a specific period of time, typically 3 years with no limits on the number of times a board member can post their name for re- election. The board is responsible to the home owners for making all major decisions with regard to all activities of the community including the upkeep of the property and its maintenance. What are some of the things to look for from a board of directors: The board has the responsibility to ensure the declaration and rules are supervised to ensure the community receives even treatment and not selective to just a few privileged owners. An efficient board will communicate with owners regularly to ensure owners are aware of decisions made and why these are good for the community. The Board of Directors The board of directors, similar to any other corporation is elected to manage the assets of the corporation professionally and ethically, considering the owners in every decision made. There is no specific experience required to serve on a board of directors, however, the recently published regulations mandate directors to go through basic training on the duties and responsibilities of being one after their election. Any adult over the age of 18 can serve on the board as director providing they have not declared bankruptcy and capable of understanding what property management is and how to make decisions based on information provided to them.

3. From the owner’s perspective, what you need to know is the following: The board of directors is elected to run the activities of the corporation therefore, the board is the final authority in the decision making of the corporation. Very similar to electing a government official running for office, once the person is in the office all the powers given to this person are governed by a set of guidelines and regulations they need to follow. Your duty is to ensure you elect a person who you think will represent you and the community best. Property Management Property Management, on the other hand, is a for hire licensed professional company which specializes in the day to day asset management of properties (from high-rise to low-rise condominium and townhome complexes) The duties and responsibilities of the property management companies are diverse, however, this typically includes: hiring employees, subcontractors such as janitorial companies, security personnel, electrician, HVAC, plumbers etc, to conduct repairs and to upkeep the property. In Ontario recently, published regulations mandate training for property management personnel and recurrent training in order to keep their certificate valid. Both the board of directors and property management company have a set of guidelines to follow and governed by the Ontario condo act, by-laws, and rules set out

4. for the comfort of the community. The elected board of directors is responsible to the owners for overseeing the collection, distribution, and management of funds not only to ensure the property is safe but also compliant with existing governmental regulations. In most cases, the board of directors elected to hire a professional property management company to oversee the day to day operations of the community. The management company is responsible for advising the board on the direction and strategy to efficiently manage the property. This includes obtaining multiple quotes for large repairs and or preventive maintenance required on the property, preparing financial projections for the board to make decisions on the reserve fund, supervision of employees and subcontractors to ensure the safety of the community and its employees. Professional Property Management Benefits of dealing with a professional property management who will look after your asset for the long run: A professional property management company will look for the best and properly priced subcontractors who will stand behind their workmanship. A professional property management company will stretch the life of every asset within the property i.e. cooling equipment, boiler systems, elevators etc., by implementing suggested manufacturing preventive maintenance checks. This in turn will keep your repairs bills on the low end directly impacting your monthly maintenance fees.

5. Additionally, a professional property management company will regularly inspect the foundation of the building and apply preventive maintenance techniques to avoid water leaks in basement and underground parking. Homeowners’ associations are communities managed by a set of guidelines which, some are governmental regulations and others are locally made rules for the comfort of the owners in the community. Condominium living is not for everyone therefore knowing your duties and responsibilities will give you the opportunity to be a well- informedcondominium community owner.