Property Managers act as partners to assist the Board of Directors with the management of their community. Each has its strengths and together they can work as a very successful team. Board Members are volunteers quite often with minimal experience or expertise yet are managing significant assets – people’s homes. That’s where the Property Manager comes in – they provide the expertise and experience to help the Board make the best decisions to ensure they are taking the best care of their condo corporation.
HERE’S A BREAKDOWN OF TYPICAL FUNCTIONS OF THE MANAGEMENT OF A CONDO CORPORATION IDENTIFYING THE ROLE OF THE BOARD OF DIRECTORS VS. THE PROPERTY MANAGER:
| FUNCTION | BOARD OF DIRECTORS | PROPERTY MANAGEMENT |
| Policies & Procedures | Sets, approves, delegates | Provides recommendations, implements |
| Bylaws & Rules | Sets approve | Provides recommendations, enforces |
| Act, Declaration, Bylaws, Rules Enforcement | Authorizes, delegates | Carries out enforcement based on policies and procedures previously approved |
| Budget | Identifies wishes, reviews approves | Prepares, reviews with Board of Directors provides recommendations, sends to owners once approved |
| Maintenance & Repairs, Contracts, Insurance, Appraisal, Reserve Fund Study, Employees of Corporation | Approves | Obtains quotes, prepares analysis, provides recommendations, implements board’s decisions, monitors performance, reports to board upon completion |
| Owner Meetings | Calls, chairs, set agenda, conducts, determines matters to be voted on, proposes bylaws | Arranges location, sends notices, registers owners, assists chair to ensure motions are being called properly |
| Board of Directors Meetings | Calls, suggest items for the agenda, conducts a meeting, approves minutes | Prepares agenda presents Property Management Report including financial statement, items for approval, pending items and information |
| Investments | Sets policy, hires financial adviser | Provides adviser options, transfers funds as per direction, maintains reporting of investments, keeps board informed of maturity dates |
| Emergencies | Obtains report, makes decisions as required | Takes immediate action, reports to the board |
| Financial Reporting | Approves | Prepares monthly financial statements, distributes to board |
| Communication between Board & Property Management | Keeps property management informed of all information | Keeps board of directors via liaison person informed of all information |
| Relations with Owners & Residents | Advises owners and residents to put concerns in writing to the board through the management company and makes decisions on concerns | Acknowledges receipt of the letter in writing with the appropriate reply attaches to property manger’s report if the board decision required |
| Committees | One board member to be a liaison on each committee. Committee reports to board for any decisions | Assists committee chairperson within the scope of the management contract does not take direction from the committee |
To be certain of responsibilities, refer to your management contract and clarify with your Property Management team. In a nutshell: Boards make the decisions. Property Managers provide administrative support and expert advice.
