Living in a Condominium: What Ontario Board Members and Property Managers Need to Know
By Audrey Loeb
Living in a condominium combines the benefits of private ownership with the responsibilities of collective governance. As a lawyer practicing condominium law in Ontario, I regularly witness both the opportunities and challenges that shape the condominium experience. This article aims to provide Board members and property managers with practical insights designed to improve community living, ensure compliance with the Condominium Act, 1998 (the “Act”) and the Declaration, Bylaw and Rules (“Governing Documents”), and foster a harmonious community environment.
Understanding the Act
The Act governs all condominiums in Ontario. Board members and property managers must have a working knowledge of its key provisions. The Act covers essentials such as:
Rights and responsibilities of owners, directors, and managers;
The governance of condominium corporations;
Procedures for meetings, voting, and record-keeping;
Finances, including reserve funds and budgeting; and
Dispute resolution and enforcement mechanisms.
Staying current with regulatory updates is crucial. Bill 106 (Protecting Condominium Owners Act, 2015), introduced two key regulatory bodies: the Condominium Authority of Ontario (CAO) and the Condominium Management Regulatory Authority of Ontario (CMRAO). The CAO supports the condominium community by providing information, resources, and dispute resolution services, while the CMRAO oversees licensing and sets professional standards for condominium managers across the province.
Governance: The Role of the Board
The Board of directors of a condominium corporation acts as its “executive branch”, making decisions on behalf of owners within the framework set by the Act and the Governing Documents.
The Board’s key responsibilities include:
Ensuring compliance with legislation and Governing Documents;
Overseeing maintenance, repairs, and capital projects;
Setting and managing the annual budget, including contributions to the reserve fund; and
Hiring, supervising, and/or collaborating with property managers and contractors.
Board members should understand their responsibilities and can do so by participating in education opportunities (e.g., CAO director training, workshops).
Under the Act, all directors are required to complete the CAO’s free, mandatory online training within six months of being elected, appointed, or re-elected—unless they have completed it within the past seven years. This training provides essential knowledge on governance, finance, procurement, emergency planning, and more, helping directors fulfill their duties effectively and in compliance with the corporation’s Governing Documents.
The Role of the Property Manager
Property managers serve as the operational arm of the Board. While the Board sets the policy and makes the key decisions, the manager is responsible for day-to-day administration of the condominium. Licensed by the CMRAO, professional managers must act with integrity, safeguard the interests of the condominium corporation, and maintain accurate and transparent records. Their role is essential in ensuring that Board decisions are implemented effectively and that the community operates smoothly.
The Manager’s tasks typically include:
Managing repairs, maintenance, and service contracts;
Collecting common expenses and addressing arrears;
Preparing financial statements and reports for the Board; and
Facilitating owner communications, complaints, and status certificates.
Clear lines of communication and well-documented policies between the Board and manager prevent misunderstandings and ensure accountability.
Financial Health: Budgeting, Reserve Funds, and Assessments
Maintaining the financial stability of the condominium corporation is one of the Board’s fundamental responsibilities. This includes:
Preparing an Annual Budget: Create realistic projections for income and expenses. Effective cost management ensures the corporation can fund services while maintaining reasonable common element fees for owners;
Conducting Reserve Fund Studies: Ontario law requires that a reserve fund study be completed every three years. This study estimates the required savings for major repairs and replacements of common elements (e.g., roofs, elevators, parking garages). Underfunded reserve funds can lead to special assessments, which are unpopular and financially stressful for owners; and
Ensuring Audited Financial Statements are Prepared: Annual audits must be completed and shared with owners to promote transparency and accountability. These audits help safeguard against financial mismanagement and reinforce trust in the corporation’s financial practices.
Communicating openly with owners about financial planning and major expenditures is important. Unexpected costs can erode trust and create division within the community, while transparency fosters confidence and cooperation.
Fostering a Positive Community
While the legal and financial aspects are the backbone of condominium governance, community harmony is the heart. Board members and property managers can foster engagement and goodwill by:
Hosting regular information sessions and social events;
Encouraging owner participation in committees and feedback surveys;
Communicating openly, with frequent newsletters or online updates; and
Adopting rules that are reasonable, clearly communicated, and consistently applied.
Boards and management should treat every interaction with respect. Board actions, even unpopular ones, are easier to accept when owners feel heard and involved.
Adapting to Change: Technology, and Sustainability
Recent trends are reshaping condominium living:
Virtual Meetings and Voting: The shift to online meetings (now allowed under the Act) increases accessibility but requires robust digital solutions for voting and participation.
Green Initiatives: Electric vehicle charging, energy retrofits, and waste reduction are becoming standard expectations in condominium communities. Boards should explore incentives and grants to make sustainability practical and affordable for their communities.
Conclusion
Living in a condominium means embracing both independence and interdependence. Board members and property managers play a pivotal role—balancing legal obligations with the practical realities of community life. By staying informed, planning proactively, and prioritizing open communication, you can nurture a vibrant, financially sound, and harmonious community. Your leadership is essential: well-governed condominiums hold their value, attract engaged owners, and turn buildings into true homes.
If you have questions about Ontario condominium law or need tailored advice for your community, consider consulting with a legal professional specializing in this area. Your diligence benefits the entire community.