Responsible for the orderly management, the manager plays a key role in a co-ownership. Its function is generally under the authority of the board of directors. Similarly to the directors, his function ensues from the preservation of the immovable for which he is responsible. The objective is to ease the director’s tasks, and not to replace them, so that they can better exercise their decision-making powers. Truly the one man band of a co-ownership, the manager must deploy his experience and knowledge for the benefit of the syndicate of co-owners for whom he works.
A review of the various aspects of his function.
Distinguishing between the function of the Co-ownership manager (gérant) and the Condo manager (gestionnaire) is not an easy task. Most participants who work in the field of co-ownership are struggling with this issue. In fact, the general perception of the similarity of their incumbent duties is wrong, as there are several differences between these two functions. The Co-ownership manager has decision-making powers regarding the management of the co-ownership. On the other hand the Condo manager acts as an advisor and is the one who implements the decisions made by the board of directors. This does not preclude him from making recommendations before these decisions are implemented. A discussion on two similar but not identical functions whose attributes, powers and duties are to be distinguished in many ways.
Retaining the services of a condo manager should not be done blind folded. Unfortunately, a syndicate of co-owners wishing to find the real gem must often guesstimate or rely on intuition, as the relevant information useful to choose the right candidate is often inaccessible.
Your co-ownership is not immune to fraud. It may be defrauded by directors, co-owners, condo managers, service providers and third parties. Therefore, it is in your best interest to be wary of the behavior of potential suspects. You should not indulge in a witch hunt, however, some warning signs should arouse suspicion and command vigilance.
Preparing a budget forecast is an unavoidable task in co ownership. Its preparation, preliminary examination and adoption will ensure the proper functioning of the syndicate of co-owners. It is up to the Board of Directors to define its terms, in view of the expenses that will have to be paid to allow a syndicate to meet its obligations. The budget also makes it possible to fix the amount of the contributions of each co-owner to the expenses of the co-ownership.
It will be prepared by the Board of Directors or property manager, based on the amounts spent in preceding financial periods, as well as anticipated non-recurring expenses. The preparation of the budget forecast requires time and rigor.
Administrative, maintenance, replacement, improvement or alteration expenses of the common portions are divided among the co-owners. General common expenses are to be distinguished from special common expenses, which are allocated under different rules. In the first case, it is the relative value of each private portion that is used to establish the co-owners contribution. As for special common expenses arising from common portions for restricted use, the co-owners using them are alone responsible of the expenses resulting therefrom.
Co-ownership staff management involves several duties and obligations. Whether towards the janitor, security personnel or gardener, it implies financial and managerial issues. In managing staff, one must take into account the following elements: recruitment, remuneration, employee performance evaluation, training and occupational health and safety. It must therefore be done rigorously.
A syndicate of co-owners can sometimes evolve into a small and medium size enterprise, an SME. Even more so if it assigns personnel to the various common portions maintenance chores of the immovable.
Yet, people hired by a syndicate have rights. In fact, their prerogatives are the same as those in force in the labor market. It is better to be aware of them and to understand the consequences.
The parking spaces legal status may differ within a co-ownership, depending on what the declaration of co-ownership (constituting act of the co-ownership) provides thereabout. These locations are either underground or outside of the immovable. The spaces designated as private portions must be distinguished from the others, which may be called common portions or common portions for restricted use. They each have their own characteristics. Every director must be made aware of same, so that the allocation of common expenses related to the maintenance or the work to be carried out is done properly. An outlook on the distinct legal status of co-ownership parking spaces.
The law provides that a syndicate must keep a register at the disposal of the co-owners. In most cases the declarations of co-ownership list the items it contains. This register is the memory of the syndicate, and consequently, its archives. In is thus invaluable. Much more than a mere witness of the sound management of an immovable, it is its prime instrument. Therefore, preservation and access are the hallmarks of this register.