Definition : Condo manager

Depuis plusieurs années, il a été constaté que le métier de « syndic de copropriété », dénommé au QUÉBEC « gestionnaire de copropriété » n’attirait pas de nouvelles vocations principalement parmi les jeunes. Les jeunes ou les moins jeunes qui choisissent ce secteur d’activités sont bien rares à se destiner au métier d'agent immobilier-syndic. Malgré les efforts des écoles en charge de la formation de base et des fédérations activent dans le secteur, le nombre de syndic inscrit sur le tableau de ’Institut Professionnel des agents Immobiliers (I.P.I.) est en constante diminution. 

  Voilà bientôt 30 années que le métier de syndic de copropriété ( dénommé chez vous  : gestionnaire de copropriétés) dispose en Belgique d’une reconnaissance légale. Intégré dans les activités d’un agent immobilier, le syndic doit être inscrit auprès de l’Institut Professionnel des agents Immobiliers (I.P.I), organisme public et véritable « gendarme de la profession ». Les chroniques, présentées sous forme de questions-réponses, aborderont cette particularité belge, très peu présente en Europe et de par le monde.  

The search for a good condo manager is like the quest for a good wine! Should you try several before finding the right one? At the risk of having stomach disorders. Or rather, it is necessary to know before the search for the right nectar the quality criteria that are flexibility, intensity, clarity ... Well, let's go! Let's do like the tasters and look for the best qualities in French co-ownership manager (syndic), Quebecois co-ownership manager and why not elsewhere?  Even in China because there are also Chinese co-ownership facing the same problem of quality research of the manager! Here are the quality criteria of the syndic of co-ownership as they are seen on the side of France:

When water damage comes from the common or private portions, any syndicate of co-owners must take the appropriate urgent measures. It will be necessary to dry up the source of the damage, as much as possible, and then move on to the other most pressing steps. The claim must be reported immediately to the insurance companies, namely those of the syndicate and the co-owners concerned. And once the claim adjuster have completed their work, it is important to hire a contractor to make the necessary repairs.  

Our Board of Directors considers entrusting part of the administrative management of the syndicate to an external manager. In order to reduce the risk of fraud, a criminal history certificate is included in our selection criteria. Also, proof of liability insurance from the manager is verified so that it is sufficient in the event of errors or omissions on his part. Another selection criterion is a manager who is a member of the Ordre des administrateurs agréés (ADMA). Question: Should directors only appoint a condominium manager with no criminal record and membership in ADMA?

Le choix d'un gestionnaire de copropriété doit être judicieux, car sa relation d'affaires avec un syndicat doit être harmonieuse. Mais comment atteindre cet objectif? Cette webradio offre des pistes de solution, afin d'atteindre l'équilibre qui permet une relation durable entre les deux parties.

The tasks of the condo manager are numerous. The latter may be mandated to manage the immovable, and thus ensure its preservation and maintenance; implement the decisions of the board of directors; settle major losses, take out the insurance required for your syndicate, but also to enforce the by-laws of the immovable. Therefore, his civil liability may be invoked. If he is at fault, he is exposed to recourses or claims for compensation, whether by the syndicate or the co-owners themselves. It is therefore imperative that civil liability insurance be underwritten for the duration of his contract for service or his contract of employment.  

23 août 2019 - L’Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), qui suit de très près les discussions concernant le projet de loi 16, réitère son désir que l’encadrement des gestionnaires de copropriété soit inclus dans la mouture finale d’une mesure législative attendue depuis fort longtemps. Or, la question des gestionnaires est revenue sur la table mardi, mercredi et jeudi derniers, alors que le débat sur le projet de loi 16 a repris de plus belle à l’Assemblée nationale, justifiant cette sortie publique de l’OACIQ.

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, when a board of directors wants to mandate the rare pearl, it often has to rely on the pifometer and intuition, because the useful information that would make it possible to retain the right candidate is often inaccessible. Certainly, the size of the firm where the manager works must be taken into account. It is up to the directors to decide whether they prefer a small or a large co-ownership management company, each formula having its share of advantages and disadvantages. As a result of the advantages, the large company has technological and material means, as well as a larger number of staff, at least in principle. In a small company, the condo manager may be committed to satisfying the clients who make him live, but he may also have insufficient staff. Beyond this criterion, other elements must be considered in the choice of this key character of the co-ownership!

Your co-ownership is exposed to various types of risks, such as fire, water damage, theft and vandalism. Among these risks, there is one that is often overlooked, that of fraud. Those who can commit it are sometimes unsuspected or unsuspecting people. This is the case for the director, the co-owner, the condo manager, service providers and third parties. Therefore, it would be wise to observe the behaviour of potential suspects, in order to detect potentially fraudulent acts. There can be no question of conducting a witch hunt in a building, nevertheless, certain warning signs should arouse mistrust and command vigilance.  

Relocations and move-ins involve going through the common portions of the building to transport furniture, boxes and other personal belongings. These operations could turn into a real mess or nightmare if, in a co-ownership, the framework for managing them has not been clearly established. While certain provisions of the Declaration of Co-Ownership are universal on this issue, nothing prevents a syndicate of co-owners from improving its content in order to adapt them to its own reality.    

Among the employees of a condominium building, we find the janitor. The latter's main mission is to carry out various housekeeping work in the common portions of the building. He takes care of both the interior and the exterior, the entrance, the hall, the corridors, the stairs and sometimes the garden. He also ensures general surveillance of the building and must report the disorders if necessary. The relationship between the syndicate and the janitor, like any contractual relationship, must be well defined from the beginning, in order to avoid conflicts that can be costly for the co-ownership.  

The condo manager is a one-man or one-woman orchestra but is also the unfailing ally of the syndicate of co-owners. Directors who do not have the expertise to properly manage their building should, perhaps, consider using his services. This will prevent the risk of potentially costly errors. Sound building management is essential to avoid slippages that can cause considerable damage to a collectivity of co-owners.

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, at the end of a contract of employment. 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.

The manager usually plays a key role in a co-ownership. Similarly to the board of directors, his duty is to preserve the immovable of which he is responsible. His appointment eases the director’s tasks, without the manager being substituted in their function. The board members will thus be better able to exercise their decision-making powers. That being said, managing a co-ownership is not always an easy task. It is in the best interest of directors to ensure that the manager assumes his mission with dignity, loyalty, diligence and honesty. To this end, the board of directors would be well advised to implement a code of conduct in which professional ethics are addressed, namely, without limitation, compliance with laws and regulations, transparency, confidentiality, conflicts of interest and, of course, discipline.

25 juillet - L'Affaire Jacques Paquet se poursuit. Une décision sur la sanction à imposer à l'égard de ses agissements a finalement été rendue cette semaine. Le Conseil de discipline de l'Ordre des administrateurs agréés du Québec (OAAQ) a rendu sa décision ce 23 juillet 2012. Tristement célèbre pour avoir dérobé des milliers de dollars à au moins cinq syndicats de copropriété dont il avait la gestion, Jacques Paquet avait d'ailleurs fait l'objet d'une émission La Facture de Radio-Canada.

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. As a mandatary of the Syndicate of co-owners, the condo manager is required to fulfill the terms of his mandate. He is thus liable for damages that may result from the non-performance or improper execution of his mandate. This means that he incurs liability in two ways, in contractual civil liability towards the one who mandated him, namely the Syndicate of co-owners and in extracontractual civil liability towards a co-owner or a third party who would suffer damage as a result of a fault. It is therefore imperative that he takes out civil liability insurance for the duration of his service contract.  

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. In addition, a condo manager must demonstrate professional interpersonal skills, namely to be a good communicator, to act with rigor and organization, to demonstrate diplomacy and to have a sense of negotiation.  

The syndicate of co-owner’s mission is to ensure the preservation of the immovable and the maintenance of the common portions. To ensure the good performance of the building, the syndicate involves various service providers (for example: a housekeeping company, an elevator operator, a building professional, etc.). Technical and property management aims at the conservation of common portions. In addition, a well-maintained building necessarily involves carrying out the necessary work to avoid the deterioration of the common portions. In the case of work, the syndicate has a central role. It puts the various service providers in competition upstream, and follows the site throughout its execution. In addition, to perform these tasks correctly, it is essential that the syndicate set up a maintenance logbook, an asset management plan and a certificate of the state of the immovable.

Managing a co-ownership requires accounting and financial skills. If the manager masters them, he will be able, under the supervision of the board of directors, to play a crucial role in the proper operation of the immovable. For instance, he will know how to balance budgets and manage efficiently the funds of the co-ownership such as monitoring contracts with various service providers, the payroll (salary of the janitor) and the work to be done in the short, medium and long term. A review of the various financial tasks that could be entrusted to the co-ownership manager.  

There is an administrative component in co-ownership Management that should not be neglected; its proper implementation will ensure the smooth operation of the syndicate of co-owners. The contractual agreement between the latter and the manager, may stipulate that various assignments – all equally important - allocated to the manager. If many cases, his duties will be numerous and will require not only thorough knowledge of the declaration of co-ownership, but also reasonable knowledge of the legislative framework governing this collective housing mode. A review of the range of duties that can be entrusted to co-ownership managers.

The Law does not set out a list of the various tasks that may be entrusted to the condo manager. The latter receives its mandate from the board of directors to manage all or part of the affairs of the co-ownership. He assists and advises the directors, ensures the smooth operation of the syndicate, makes life easier for all and takes care of the most important asset of the co-owners: the building itself. Several administrative, financial and technical tasks can be assigned to it. The first two do not require attendance at the premises, while the third one requires his presence at the immovable. As the mandatary of the syndicate of co-owners, the condo manager implements decisions made by the board of directors, and looks after the best interest of the community of co-owners.

As pretty as it is, a new co-ownership will age and sooner or later require major repairs.  However, in Quebec, about half of the syndicates of co-owners do not have any management tools to adequately provision the contingency fund. This problem, which sometimes has disastrous financial consequences for some co-owners, should soon be resolved by the obligation to obtain a contingency fund study to  which the syndicates of co-owners will be subject by the upcoming amendments to the Civil Code of Québec following the adoption of Bill 16 in December 2019. This contingency fund study will prevent it from getting into trouble because of administrators who have not properly planned the amounts of money to be allocated to it. A look at the terms and conditions relating to the contingency fund study and the transitional measures surrounding these new legislative provisions.