- Condo manager : External management firm
Definition : Condo manager - External management firm
Natural or legal person the mandate of which, under the terms and conditions of a contract for services to insure (entirely or partially) the day to day management of a co-ownership.
The manager bound to a syndicate by a contract for services does not have the same relationship with his client as the one who has the status of a salaried employee. That being said, regardless of the nature of the relationship between the parties, it is advisable to specify the contract’s terms and conditions, including its obligations and its possible renewal. This will prevent misunderstandings and possible litigation.
Terminating the contractual relationship between the manager and the syndicate of co-owners requires, at all times, an evaluation of the legal and contractual parameters. A review of the various scenarios illustrating the expiration or resiliation of a contract for services.
A manager generally has the responsibility of the accounting and financial management of the co-ownership. When the syndicate hires an unpaid manager, either a resident or an outside source, it is in its interest to prevent any type of deficient management, if not fraud. However, the absence of clear standards in relation with the management of the funds of the syndicate renders the syndicate vulnerable to misappropriation or unauthorized use of its funds.
A contract usually has a term. This is the case with regard to the contractual relationship between the syndicate and its condo manager. It may last for years or end quickly. Some co-ownerships are loyal to their manager, while others change their allegiance or no longer want his services. That being said, there are several reasons for the termination of the contractual relationship such as:
The condo manager must stipulate, in the contract for services, the scope and the cost of his services for the co-ownership’s day-to-day management. Day-to-day management includes the usual acts usually included in the basic package. The manager may also charge for additional remuneration for "supplementary" services. Therefore, it is necessary to specify the services included in “day-to-day management”, to avoid arguments, or having to pay unforeseen additional fees.
Every syndicate of co-owners should retain the services of a condo manager, to assist the board of directors carrying out its duties. As the needs of a co-ownership are multiple and complex he needs to be the one man band of the co-ownership and assume enormous responsibilities. This being said, there are three management modes associated with this function, namely: resident-managers (autonomous management), employees (self-management) and contractors (external manager). A review of the various missions that may be entrusted to them.
The condo manager’s tasks are numerous. Therefore, his civil liability could be engaged. If he is at fault, he may be exposed to recourses or claims for compensation, whether by the syndicate or the co-owners themselves. It is therefore imperative that he takes out civil liability insurance for the term of his contract for services.
The person responsible for the management of a syndicate of co-owners’ real estate assets, the condo manager plays a strategic role. His competence level can make the difference, especially if the board of directors knows next to nothing in such matters. Knowing how a co-ownership works, as well as taking charge of the stewardship of the immovable, requires knowledge that is not a given to everyone.