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For first time buyers, owning or living in a Condominium that is professionally managed can come with a learning curve. The roles and responsibilities of each individual involved in that Corporation can be confusing, especially the role of Property Managers.
Why is it recommended to be professionally managed? What do our Property Managers actually do?
Role of Property Managers: Condo Communication
Effective communication is easier said than done. One of the main roles of Property Managers is to communicate with the Board Members, Owners, Tenants, On-Site Staff, and Vendors. On average a Property Manager can manage communication from up to 15 properties in one day. These properties can range from 10 units to 370 units each.
Traditionally the industry standard of communicating has been by mail and phone but as the industry continues to evolve, the communication evolves with it (ex. E-mail, electronic notices and/or web portals). These functions are in high demand, which requires new systems and processes to ensure that detailed information is tracked, communicated and executed. Each communication (phone call, email, pet approval, parking rental application, bylaw infractions, project notices, vendor quotes etc.) that comes into our office is inputted into the database for effective record keeping and reporting back to the board members every month or in nightly board meetings.
Vendor Management Program
Vendor Management is #2 on Boards or Owners concerns. If not managed properly with proper procedures in place, vendor management can take up to 75% of a Property Manager’s or Board’s time.
- Obtaining quotes for each project/property
- Following up on quotes if not received in a timely manner
- Reviewing financial obligations with the board upon receiving the quote
- Getting approval to proceed with the project
- Setting up and signing the contract; sending the purchase order (PO).
- Scheduling a start date, timeline, and specifics with the Vendors
- Producing notices for the residents and sending them out
- Follow up with Vendor to ensure they started the project on time and are on-site
- If they aren’t on-site; track down that vendor
- Follow up with vendors to provide updates on progress.
- If there is any deviation in scope, halt the project and get approval from the board.
- Ensure that the work is completed on time and is inspected to ensure it was done correctly.
This is why at Magnum York we have put in place the M.Y. Preferred Vendor Program. Which showcases a list of preferred vendors that have rules in place to ensure that 75% of our time is reduced to 25%.
These preferred vendors have gone through an extensive credentialing process which reviews (not files) their Liability Insurance, WCB, GST and CRA requirements. As Magnum York is Alberta’s Largest Privately Owned Property Management Company, our scalability allows us to receive preferred pricing and service from these vendors.
(Ex. Discounted rates on insurance, utilities and general vendor operations like landscaping, recycling etc.)
Like any organized Corporation, Accounting functions are a must. This includes monthly reporting, budgets, and audit processes. Magnum York has put into place a computerized system that tracks and records all invoices, bills, payments, condo fees, special assessments, purchase orders and any other misc. fees you can think of.
This allows Magnum York to produce accurate and timely monthly financials for the Operating and Reserve accounts for each Condo Corporation. When the annual audit comes around, Property Managers are able to report back to the Auditors about what that $300 bill in March last year was for.
Annual budgets are another responsibility for Property Managers to complete. By reviewing those accurate financials in the system and any current industry trends, the Property Manager can create a projection to the end of the Corporations Fiscal Year. This allows Boards to be able to judge whether or not certain sections of the budget needs to be increased to allow for those extra costs, like Organic Recycling. Thanks for reading!
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