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Dealing with a condo board can be hard. Being a part of a condo board and trying to please everyone involved can be even harder. There are always issues looming just over the horizon, some of them with potential to do serious damage to your condo and the wallets of the owners.
We thought it would be best to bring some of those issues to light so you can spot any potential red flags before they become something worse. We have pinpointed four major risks that condo boards can potentially be exposed to and what the best ways to remedy these situations are. At Magnum York we’ve dealt with and seen it all and we want to help you avoid those pitfalls in the future. Going to, and dictating condo board meetings with your eyes and ears open is a great start.
With that in mind, here are the four potential risks condo boards are exposed to and how to avoid them:
Table of Contents
Risk #1: Misalignment of Condo Board and Building Management
The key to keeping things moving in an orderly fashion and have everyone’s needs met is to align the directives of the condo board with those of the building management. If everyone is working in concert than things will be able to be done faster and with purpose. The old adage that you need everyone pulling in the same direction holds true. Having an open line of communication between the condo board and the property management company is paramount to running a building the way it should be run.
At Magnum York we’ve long worked with condo boards to achieve the best results possible. We listen and do our best to serve each condo board individually instead of governing with blanket policies. Each building is different and tailor made services are necessary for those buildings to function properly.
Risk #2: Keeping Small Reserve Funds
Having a small reserve fund or none at all can sink any building. It’s of the utmost importance that the building’s reserve fund is closely monitored and always kept at a level where any surprise issues can be taken care of without resorting to a cash call. A small reserve fund is a major risk and always needs to be taken into consideration by condo boards. Having frank discussions about these sorts of issues is the best way to avoid exposing yourself to a potentially uncomfortable and costly situation in the future.
Risk #3: Budgetary Concerns and Shortfalls
Having a balanced budget and maintaining it will go a long way in ensuring that your condo building stays afloat. Budget shortfalls can be a major cause of consternation between owners as their may be a few delinquencies out there not pulling their weight. Following up with delinquents, not spending lavishly, and perhaps a small raise in condo fees are the best ways to avoid being short the monies necessary to perform the upkeep your building requires. Not always easy to do, but sometimes these things are necessary.
Risk #4: Dealing with Complaints
One of the biggest challenges condo boards face is dealing with owners who are simply looking out for themselves and the well-being of their place and their place alone. It’s difficult when people refuse to take a look at the bigger picture, and the risk here is that people may take action when they don’t get their way. It’s important to listen to everyone and take their concerns into consideration. Give people a voice and show them that you’re sympathetic to their plight. They may not get their way but if can understand the thought process that goes into the decision-making most people are reasonable enough to sign off on that.
Magnum York Property Management: Minimize risks condominium boards face
At Magnum York, we take pride in offering property management services that will work for you. We don’t come in and make sweeping changes, nor do we operate with blanket policies. Each building is different and we want to find the best way to help you operate yours fastidiously and efficiently. We operate many buildings throughout Alberta and have a great understanding of what will work and what won’t.
If you’re looking for help and solutions to your problems, don’t hesitate to call or visit any one of our offices in Calgary, Red Deer, Edmonton, and Fort McMurray.