The manager is resented
There can be many reasons why the minority of the directors, and many
of the owners resent their property manager and/or the manageemnt
company.
The
manager runs the place
If there is a weak, lazy or an inexperienced board, the
manager can end
up running the property. After all, decisions have to be made and a
manager is paid to make decisions. Instead of the board overseeing
their property manager's performance,
the manager may have a free hand to run the building.
Sometimes this happens because the manager develops a close
relationship with the
condo's president. The two of them make all the decisions and the rest
of the
board goes along with this; sometimes it is because the directors don't
understand their duties, or they don't want to put much effort into a
"volunteer" position.
However, a board may come to resent being talked down to, especially if
new directors, made of sterner stuff, get elected to the board.
At other times, the manager is overbearing when dealing with the owners.
Conflicts of
interest
The manager may favour a certain contractor who may be a relative,
gives kickbacks or does work on the manager's house for free or at deep
discounts. Sometimes the president and the treasurer are in on it. This
is fairly common.
Eventually, the minority directors and some of the owners find out
about this.
Overbearing
Some managers act abusively towards some owners, especially the ones
who are constant complainers or who are political opponents of the
existing board.
Disorganized
Some managers, and/or the management company, may be disorganized.
Invoices cannot be found; new owners and tenants are not properly
registered; board meeting minutes go missing; financial statements
are late; cheques are misplaced; no list of contractors exists;
deadlines for contract renewals show up late so the
directors barely have the time to study quotes before having to vote on
them.
Status certificates are
not updated and the financial statements cannot be audited in time for
the AGM. Condos fees may not be paid on time or are not collected and
contractors
may be constantly paid late. Liens may not get registered in time.
Sloth
Other issues can include contractors being constantly called in because
neither the
manager nor her/his staff can deal with even the tiniest of problems.
The superintendent and cleaners may not be adequately supervised and
therefore they may not be working as well as they should. In other
condos, the
superintendent is
allowed to do whatever he wants and may be abusive towards some of the
owners or he openly plays favourites.
Other managers ignore problems that some owners bring to their
attention. In response, after a while, the owners stop complaining but
the resentments don't disappear.
The manager is
weak
A different problem is when the manager is too weak. Issues don't get
solved, residents are not informed when they break the rules, warning
letters for late payments are not sent out and poor performing
contractors are tolerated.
The manager may have a habit of telling the owners one thing and the
directors something else.
Bearer of bad
news
Perhaps the management company tells the board that the fees are too
low and need to be raised or a special assessment is required. The
manager may tell the board that they are violating the Condo Act or
provincial regulations.
That kind of news doesn't go over very well.
Director(s) not
paying their fees
A manager who informs the board that one or more of the directors are
not paying their fees may not last too long.
Day of reckoning
Over
time the number of owners who have a grudge against the manager
and the board grows and when the majority on the board changes, the new
board may demand that the company replaces the manager. If that doesn't
help, the board starts a search for a different management company.
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