August 2024
The relationship between a condo board and management is unique. In most residential and commercial buildings not governed by a condo board, the manager is the landlord or a representative acting on their behalf.
In a condominium community, the role of management is to support the board of directors, which is generally composed of volunteers having little or no formal training in or knowledge of condominium governance. The manager handles day-to-day operations of the corporation, supports the board in their efforts to enhance resident living standards, manages financial operations, and is responsible for initiatives or projects undertaken by the board. This requires a more collaborative working relationship.
The success of this relationship between the board and manager can enhance or undermine a residential community. A good manager will compensate for a board’s inexperience in day-to-day residential building management. They rarely receive recognition for this because it is a basic expectation of owners. Poor performance will nearly always be blamed on management despite failures of the condo board.
The condo board is elected by owners who otherwise have little or no involvement in the management of their building. They do have high expectations and demand greater input by virtue of ownership. Maintaining a harmonious relationship between owners and the condo board requires a degree of ongoing communication that can be challenging.
The working relationship is one where the condo board is responsible for the operation of a condominium community. They make decisions, recommend projects or changes, and establish priorities. The condominium manager’s job is to handle day-to-day functions and provide their management expertise in all operational areas. This can include administrative tasks, communication with residents and the board, financial management, vendor management, property maintenance and board guidance. They can be required to manage projects and work with professionals such as accountants, lawyers and engineers. A good manager will inform the board when they are not performing their fiduciary responsibilities, or when out of compliance with local laws or the Condo Act.
An experienced board improves the relationship. They have a better understanding of how the property needs to be managed, and facilitate the decision-making process. They provide support and resources to the manager. An inexperienced board struggles to make decisions and can be less able to see the “big picture.”
The most effective boards are those with a mix of skills and experience, and able to work toward a common goal.
The unique relationship between condo board and condominium manager determines the success of a community. A healthy and trusting relationship is best.
