Every syndicate of co-owners should retain the services of a condo manager to assist the board of directors carrying out its duties; as a real conductor of the immovable, he has enormous responsibilities to assume because the needs of a co-ownership (condominium) are multiple and complex. That being said, there are three types of management in a co-ownership: autonomous management, self-management and external management.
Autonomous management
In order to ensure the day-to-day management of the co-ownership, the board of directors may ask one of its co-owners, directors or even an occupant of the immovable to assume this role; this type of management is particularly suitable if the co-owners get along well and if the majority of them are occupants. The choice of an autonomous management is a good fit for smaller co-ownerships for which a condo manager is far too expensive in regards of the expected services.
Advantages
The advantage of using an in house manager stems from economic considerations; it allows co-owners to have reduced management fees and as a resident who is personally involved in the best interest of the immovable, chances are that he will be more attentive to daily problems.
Disadvantages
That being said, autonomous management can be risky as the person in charge does not always have the skillset to carry out the job properly; the shortcomings are frequently caused by:
For all these reasons, the choice of an in house manager should be considered only for co-ownerships containing a small number of residential units.
Self-management
For larger co-ownerships containing 200 or more residential units, a resident (salaried) manager is an advantageous solution as he is the syndicate’s employee and he will perform the tasks requested by the board of directors; he is bound by a contract of employment which establishes a relationship of legal subordination with his employer.
Advantages
Based on his almost daily presence at the premises of the immovable, the resident manager is a front-line resource and so, he is often available to accomplish the tasks that the directors can't or won't assume.
To optimize the resident manager's contribution, the board of directors must ensure that he satisfies several essential qualities such as:
Warning
The various attributions a manager can have raises the issue of the syndicate’s tax obligations, that is to say to know if he's an autonomous self-employed worker or an employee; it is necessary to clearly establish the status of the manager to determine whether he remains a self-employed person paid on a fee-for-service basis or an employee whose taxes are to be collected at source.
External management
To ensure the day-to-day management of their immovable, more and more syndicates are mandating an external management firm who has no link with the co-ownership; this external relationship is usually governed by a contract of services defining the scope and the cost of the services.
Advantages
The management of a co-ownership by an external manager has many advantages; since the latter is usually the employee of a management firm, he should be more competent and qualified to perform the work. This type of management has solid foundations such as:
Warning
At first glance, the fees of an external manager may seem high but it's important to keep in mind that in large co-ownership projects, the task can't be handled by only one person.
WHAT YOU SHOULD KNOW! Condo managers are not governed by a professional order; therefore, it is in any syndicate's best interest to retain the right candidate, that is to say one who will abide to a code of ethics and of professional conduct in all circumstances.
WHAT TO KEEP IN MIND: There are three types of management in a co-ownership: autonomous management, self-management and external management.
WARNING! The management and the maintenance of an immovable are not a simple task: it's essential to have adequate legal knowledge, an understanding of building technology, an understanding of accounting and sometimes staff management experience.
