Management riding two horses

Condominium property management companies manage condo corporations. However some PMCs also manage rental units for individual owners and some are also managing short-term rental units for individual investors.

For example:
the developer
Del Property Management
condominium property management
Del Condominium Rentals
manages rental units owned by investors
manages short-term rental units

In this case, the four revenue streams are split into different profit centres but they can be found within the same condo corporation.

What is becoming more common is for a condo management company to manage the condo corporation plus rental units, student housing units and short-term rental units sometimes in the same corporation.

Here are some Tweets from the owners of one Toronto-based condo management company who is trying to grow his business:

A guide to student rental property management
If your residential property management company is located near a college or university, it’s likely that the prospect of renting to students will come up eventually. As a property manager, the idea of renting to college students can seem daunting as the risk of getting your property back in worse shape than before seems more likely. However, equipped with the necessary knowledge and precaution, renting to students can be a beneficial, lucrative niche for your rental property management business.

Of all the above Tweets, and links from those Tweets, the most informative one is from the 6 Reasons ... as it shows the stark difference in attitudes between condo owner-residents and investors:
Investors exempt themselves from the daily grind and responsibilities and focus more on the business and profit making part. No need worrying how to make a plumber show up on Sunday afternoon. An investor would focus on constant research and smart decision-making.

To do this requires hiring a property management company (PMC) to advertise, negotiate with clients, maintain and generally oversee property and assets on her behalf.

2. Investors have the benefit of focus.
Investors focus on one thing, and this increases their profit in the long-term and also in the short-term, depending on how quickly they can make a property more profitable.

3. Investors avoid indigent tenants.
An investor can’t be bothered by such challenges. The firm manages all of that and reports to her. And in the event that a property is not profitable, she can sell it, and move on to better investments.

4. The better end of asset appreciation.
The valuation of property tends to increase over the years as the net operating income of the same property augments as a result of increase in rent and reduction in the maintenance cost. The latter is assured through effective property management work. Investors need only to find the best management firm they can.

5. Investors are in it for the money.
To be a real estate investor, you only need to have business at the forefront of your mind. You buy an asset with the intention to offload such property for good profit as soon as it is profitable.

Investors have no sentimental attachments to properties—as selling it doesn’t mean losing their home—as is the case of many landlords.

This condo property management company, along with others, is aggressively seeking to manage individual rental condo units. If they manage rental units in condos where they don't manage the corporation, there is no conflict of interests.

However, if they manage rental units in the same corporations where they are under contract, I see the potential for far too many conflicting interests which could include:

using the rental proxies to influence elections for the board of directors.

promote policies that would favour rental properties over the owner-residential units.

using the corporation's employees and/or contractors to do work in or for the rental properties.

using the corporation's assets to assist in the leasing and maintaining the rental properties.

ignoring complaints about the tenants' bad behaviours and ignoring over-crowded units.

allowing or ignoring issues with short-term rentals.

using their management position to solicit rental unit contracts.

Some of these abuses of position occurred when rental companies and owners with multiple units controlled boards of directors so why would it be different with property management companies?

Board of directors should write in their management contract for their existing and future management companies that the company and any affiliated companies are not allowed to manage any individual units with in the condo corporation.

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