September 2024
Some tenants fit right into a community. They are respectful and live peacefully without conflict. Others are the opposite. Condominium managers can receive complaints, requests and questions from tenants that should be directed to the landlord. Tenants may be unaware of their responsibilities versus their landlord and the corporation. Landlords failing to provide adequate information to and oversight over their tenants are a drain on corporation resources.
Recently released data shows that 42 percent of all condominium properties purchased since 2016 are investor-owned. With many corporations experiencing a rise in tenant-occupied units, the relationship between tenants, owners and the corporation is likely to require more attention from management.
Condominium corporations should be encouraging tenants to care as much as owners who have an invested interest in the property. This makes it more likely that tenants will reach out to management about corporation-directed issues rather than doing as they please. When tenant problems arise, management should be getting the owner-landlord involved as quickly as possible to ensure all parties are on the same page.
Tenant Welcome Package
A New Owner Welcome Package is frequently provided to new owners. This helps them gain knowledge about their new home and provides all forms that may be necessary for those who have recently moved in.
A New Tenant Welcome Package that landlords are required to provide to their tenants is equally important. It ensures landlords provide consistent information to all tenants, and ensures tenants are provided with the knowledge they require to “fit in” with the community.
The Basics
Unit owners should clearly understand they are responsible for ensuring their tenants comply with the corporation’s governing documents, and that any communications from tenants should be directed to them rather than the management office. Corporations should facilitate this understanding by always addressing tenant concerns directly with the unit owner, and in writing in case an owner fails to address a situation that leads to enforcement or legal action.
Interior unit repairs and maintenance or service requests must be made by owners to the corporation. Unit owners are responsible for any unapproved alterations made by tenants. Tenants can attend owner meetings, but only if in possession of a signed proxy by the owner to the tenant for the particular meeting.
Know who Resides in the Building
Condominium corporations are obligated to maintain records of leases. This information is reported on the status certificate and other documents provided to owners in the form of how many units are leased. They should be aware of who is entering the building and what activities are occurring. Tenants are provided with the corporation’s declaration, by-laws and rules so are aware of what is not permitted.
Owners are required to notify their corporation within 10 days of entering into, renewing or terminating a lease. This notice must include their own address, the renter’s name and a copy of the lease. The lease must be provided to the tenant along with a copy of the declaration, by-laws and corporation’s rules.
Corporations are required to report how many units are leased on the status certificate and specific documents provided to owners.
Should infractions occur, tenant contact information is available to management, the corporation and lawyer for direct communications.
Some director positions are restricted to an owner-occupant. Proper records help reduce the likelihood of a director being elected, then disqualified and their vacant position creating a board without quorum.
The Newsletter
A monthly or quarterly newsletter and other communications are the best way to ensure a good tenant-owner-corporation relationship. Failure to communicate with everyone, or specifically excluding tenants from communications, encourages a divide between owners and tenants. Tenants become isolated from the community so act without awareness of what is proper or how their actions are perceived. Owners become of the impression that tenants are undesirable and a burden to their community.
Insurance Requirements
The condominium corporation maintains insurance for common areas of the building. There will be a standard unit description, and possibly standard unit bylaw, providing limits to this coverage. The cost of insurance will increase when there is a high ratio of rentals to owner-occupied units. Some insurance companies will not provide a policy if this ratio exceeds 50 percent.
A unit owner should have insurance coverage for anything beyond the standard unit description and by-law including unit contents, living expenses for other accommodation if required to vacate the unit because of repairs or damage, corporation insurance deducible, and personal liability.
Some unit owner coverage transfers to a tenant. The tenant is responsible for living expenses should they be forced to vacate because of repairs or damage, their personal contents and liability for what occurs in the unit.
Tenants should be required to show proof of insurance. Tenant insurance protects the unit owner and condominium corporation from being financially responsible for damages and loss occurring while a tenant resides in the unit.
The tenant-owner-condo corporation relationship can be easy to manage when all parties understand their obligations.
